ZoomInfo (GTM) Stock Looks Cheap On Sales But Broader Checks Stay Mixed

ZoomInfo Technologies stock has fallen about 93.3% over the past 5 years, yet its current market multiples screen as undervalued and the broader valuation checks show a mixed picture rather than a clear bargain or clear overvaluation. After such a large drawdown and a recent bounce, investors are weighing whether the current price still embeds too much pessimism or if risks are only partly reflected.

• Over the past 5 years, ZoomInfo Technologies has delivered a share price decline of around 93.3%, which puts long term holders deep in the red and makes any assessment of value heavily dependent on how durable the remaining business is.
• The recent class action filing following a sharp stock move and concerns around customer retention adds legal and execution risk, while case studies such as Drips increasing its use of the platform may support the argument that the product can still drive meaningful adoption for clients.
• ZoomInfo Technologies passes 3 of 6 valuation checks on Simply Wall St, which points to a mixed valuation read where some measures flag the stock as cheap while others are less conclusive about the margin of safety, as shown in the 3/6 score.

For investors, the debate is whether ZoomInfo Technologies' recent share price level properly reflects both the legal and business risks and the possibility that the current earnings and cash flow base can support better long term returns from here.

Find out why ZoomInfo Technologies' -57.4% return over the last year is lagging behind its peers.

Does ZoomInfo Technologies Look Undervalued on Sales?

P/S is a useful yardstick for ZoomInfo Technologies because revenue is still the main reference point for investors when earnings are pressured.

ZoomInfo Technologies currently trades on a P/S of about 1.0x, which is just above the Interactive Media and Services industry average of roughly 1.0x and above the peer group average of around 0.8x. On Simply Wall St’s more tailored “fair” P/S of about 1.1x, which adjusts for the company’s size, margins and risk profile, the current multiple sits slightly below what that model would imply.

The recent securities class action filing after the 2026 guidance cut weighs on sentiment, yet the stock still trades at a P/S that is a little below this fair multiple benchmark. That indicates the market is pricing in caution around ZoomInfo Technologies, but not at a level that fully aligns with the implied fair P/S.

On the preferred P/S multiple, ZoomInfo Technologies stock currently appears undervalued relative to the modelled fair ratio.

See what the numbers say about this price — find out in our valuation breakdown.

The ZoomInfo Technologies Narrative: What Would Justify Today's Price?

Simply Wall St Narratives for ZoomInfo Technologies are designed to connect this valuation puzzle to clear, scenario based stories that spell out what would need to happen to ZoomInfo Technologies' growth, margins and earnings for the stock to be worth materially more or less than today’s price. These narratives sit on the company’s Community page. Each narrative links a specific set of catalysts and risks to an implied fair value, so you can later compare which version of events is actually unfolding.

The ZoomInfo Technologies community is split between a reset-driven recovery story and a view that AI and consumption shifts still leave the stock exposed.

Bull case: 63% undervalued

"Bullish analysts highlight that ZoomInfo continues to generate substantial free cash flows, which they view as an important support for equity value even as revenue expectations reset..."

Read the full Bull Case to see why ZoomInfo Technologies could be undervalued

Bear case: 109% overvalued

"The shift towards serving upmarket customers, although potentially profitable, might slow revenue growth as SMEs form a significant part of ZoomInfo's base and are declining, which could lead to lower-than-expected revenue growth..."

Read the full Bear Case to see why ZoomInfo Technologies could be overvalued

Do you think there's more to the story for ZoomInfo Technologies? Head over to our Community to see what others are saying!

The Bottom Line

ZoomInfo Technologies screens as undervalued on its preferred P/S multiple, while the broader valuation checks are mixed rather than clearly supportive. That leaves the stock looking discounted but not obviously mispriced, especially with legal and execution questions still in focus. The crux for you as an investor is whether customer retention and revenue quality hold up well enough for that P/S discount to close over time, or whether the current gap simply reflects ongoing business and legal risk.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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