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Travelzoo, (TZOO) Fair Value & Analysis

Communication Services · US · Market cap $110M

T Travelzoo, logo Travelzoo, TZOO · US
Price$7.33
Fair Value$8.31
Upside+13.4%
Quality71/100
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Healthy Growth
Thin margins · 4.3% net margin
Negative equity (buybacks among others) · generates free cash flow
Ranks above peers (8/13)
Moderate moat 57/100
Evidence: Medium Range $5.80 – $11.34 Share as image

Fair value as of: Jul 21, 2026

From 23 valuation models · updated 21 days ago

Share price −32.1% over the past month.

A solid business, screening 13% undervalued on our models.

What matters now

  • A fairly wide model range ($5.80 to $11.34) leaves room in how you read the outcome.
  • Our model range runs from $5.80 (bear) to $11.34 (bull), base $8.31. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 71/100 (solid quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

$23.84 $4.11 Fair Value $8.31 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 21, 2026.

How to read this chart

60‑month range $4.11 – $23.84 · fair‑value band $5.80 – $11.34 · the $7.33 price screens below the $8.31 fair value. Dashed = 300-day average. As of Jul 21, 2026.

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Analysis

Travelzoo, (TZOO) currently trades at $7.33, while our model-based Fair Value estimate is $8.31, implying the stock looks roughly 13.4% undervalued today. The Quality Score stands at 71/100 (solid quality), in the Communication Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Travelzoo, generated revenue of $92.9M at a net margin of 4.3%. Revenue grew 4.9% year over year. It earns a return on equity of 51.6%. The stock trades on a trailing P/E of 29.0. Fundamentals as of Jul 21, 2026

Our scenario range runs from $5.80 (bear case) to $11.34 (bull case); at $7.33, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 48% below its 52-week high and 55% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at -20% fair-value upside, at 13%, TZOO screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF $5.48 $7.12 $9.06 80
Rev-Margin DCF $6.17 $9.35 $13.07 74
ROIC Compounder $3.83 $4.18 $4.47 72
All 23 models by family
DCF Models
FCF DCF $5.49 $7.41 $9.85 38
Owner Earnings $4.95 $6.64 $8.80 31
5Y Revenue Exit $6.17 $9.35 $13.44 39
5Y EBITDA Exit $6.05 $9.13 $12.73 41
5Y P/E Exit $6.67 $10.30 $14.14 38
10Y Revenue Exit $5.66 $8.22 $11.69 36
10Y EBITDA Exit $5.73 $8.09 $11.22 37
10Y P/E Exit $6.07 $8.79 $12.16 35
Earnings-Based
Graham-Dodd $3.11 $10.37 $13.89 54
Lynch FV $2.35 $3.36 $4.37 50
PEG = 1.0 $2.35 $3.36 $4.37 46
EPV $3.83 $4.18 $4.47 59
Dividend Discount
Gordon GGM $0.0400 $0.0700 $0.0900 70
DDM Multi-Stage $0.0400 $0.0600 $0.0700 61
Multiples
P/E Multiple $7.54 $10.06 $12.57 63
P/S Multiple $5.83 $7.77 $9.72 58
EV/EBIT $8.96 $11.64 $14.33 53
EV/EBITDA $7.21 $9.31 $11.41 54
EV/Revenue $7.01 $9.63 $12.25 43
Growth DCF
Growth DCF $5.48 $7.12 $9.06 80
Rev-Margin DCF $6.17 $9.35 $13.07 74
Economic Profit
ROIC Compounder $3.83 $4.18 $4.47 72
Growth Earnings
Growth-Adj P/E $6.36 $9.08 $11.81 68

Widest divergence: Multiples ($9.63) versus Dividend Discount ($0.0600). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) $92.9M
Revenue growth (YoY) +4.9%
Net margin 4.3%
Return on equity 51.6%
Free cash flow $5.6M FY2025
P/E ratio 29.0
More key figures
Operating margin 14.2%
EPS (TTM) $0.3700
EPS growth (YoY) -12.1%
Net debt $172K FY2025

Figures from reported company fundamentals · as of Jul 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 71/100

Of which business quality 68 · Market factors (momentum, volatility) 29

Profitability 74
Margins and returns on capital today
Quality Growth 30
Are margins and returns improving?
Cashflow 54
Earnings quality: real cash, not paper profit
Fin. Strength 65
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 19
Calm price path (market factor)
Momentum 44
Price trend over the last 3–12 months (market factor)
52W Momentum 16
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Travelzoo, together with its subsidiaries, operates as an Internet media company that provides travel, entertainment, and local experiences worldwide. It operates in four segments: Travelzoo North America, Travelzoo Europe, Jack's Flight Club, and New Initiatives.

Full company description

Travelzoo, together with its subsidiaries, operates as an Internet media company that provides travel, entertainment, and local experiences worldwide. It operates in four segments: Travelzoo North America, Travelzoo Europe, Jack's Flight Club, and New Initiatives. The company offers Travelzoo website, Travelzoo Top 20 email newsletters, Standalone email newsletters, Travelzoo Network, Travelzoo mobile applications, Jack's Flight Club website, Jack's Flight Club mobile applications, and Jack's Flight Club newsletters. The company's Travelzoo website and newsletters include local deals and getaways listings that allow members to purchase vouchers for offers from local businesses, such as spas, hotels, and restaurants; Jack's Flight Club, a subscription service that provides members with information about exceptional airfares; and Travelzoo Network, a network of third-party websites that list travel deals published by the company. It serves airlines, hotels, cruise lines, vacations packagers, tour operators, destinations, car rental companies, travel agents, theater and performing arts groups, restaurants, spas, and activity companies. Travelzoo was incorporated in 1998 and is headquartered in New York, New York.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Travelzoo, reported revenue of $91.7M in FY2025 versus $62.7M in FY2021, a compound +10.0%/yr. Reported net income was $4.7M in FY2025, compounding +50.7%/yr from FY2021.

Growth Quality 84/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$91.7M
Latest YoY
+9.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.1%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.3%
Avg. growth/yr (27Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+29.6%
Revenue +10.0%/yr
FY21 $62.7M
FY22 $70.6M
FY23 $84.5M
FY24 $83.9M
FY25 $91.7M
Net income +50.7%/yr
FY21 $911K
FY22 $6.6M
FY23 $12.4M
FY24 $13.6M
FY25 $4.7M
Character of growth · EPS growth decomposed (2014-2025) +0.0 % p.a.
Revenue per share −3.9 pp

of which total revenue −5.0 pp · buybacks/dilution +1.1 pp

EBIT margin +5.8 pp
Tax rate −2.7 pp
Residual (interest, one-offs) +0.8 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Travelzoo, Fair Value". https://www.fairvalue-calculator.com/stock/TZOO

Peer Group

Internet Content & Information · 151 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 71 · Top 25%
Fair Value upside +13% · Above median
Return on equity (TTM) 52% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 4% · Above median
Operating margin (TTM) 14% · Above median
Revenue growth 5% · Below median

Valuation Multiples vs Internet Content & Information median · lower = cheaper

P/E (TTM) 29.0× · Pricier than median
P/S (TTM) 1.19× · Cheaper than median
P/FCF 19.7× · Pricier than 75% of peers
EV/EBITDA 15.0× · Pricier than median
PEG 1.14× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 51 · sector 0
FUTURE 25 · sector 31
PAST 100 · sector 10
HEALTH 100 · sector 99
DIVIDEND 0 · sector 43

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Internet Content & Information stocks, each showing price versus our Fair Value estimate (as of Jul 21, 2026).

Stock Price Fair Value vs Fair Value
Alphabet Inc GOOGL $354.46 $145.14 -59%
Meta Platforms, Inc META $669.21 $534.91 -20%
Tencent Holdings 0700 HK$460.20 HK$467.50 +2%
Spotify Technology S.A SPOT $485.38 $209.56 -57%
Reddit, Inc RDDT $195.34 $39.59 -80%
Baidu, Inc BIDU $109.50 $66.96 -39%
Kuaishou Technology, an investment holding company, 1024 HK$44.70 HK$101.03 +126%
NAVER Corporation 035420 191,300 KRW 231,585 KRW +21%
Tencent Music Entertainment Group 1698 HK$34.74 HK$65.78 +89%
REA Group REA A$149.14 A$88.53 -41%

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Frequently asked questions

Is Travelzoo, (TZOO) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of $8.31 versus a price of $7.33, about +13% (undervalued).
What is the fair value of TZOO?
Our model-based fair value for Travelzoo, is $8.31 (as of Jul 21, 2026), built from audited fundamentals. The current price is $7.33.
What is the quality score of TZOO?
Travelzoo, has a Quality Score of 71/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Travelzoo, (TZOO)?
Travelzoo, reported trailing-twelve-month revenue of about $92.9M (latest available figure, as of Jul 21, 2026).
What is the net profit margin of TZOO?
The net profit margin of Travelzoo, is about 4.3%, meaning it keeps roughly 4.3% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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