BuzzFeed, a digital media company based in New York City, employs 925 people and went public on January 12, 2021. Its brands include BuzzFeed, HuffPost, and Tasty, targeting diverse online audiences.
Based on our analysis, BuzzFeed appears significantly undervalued, earning a rating of 4 out of 5 stars from Cashu. Several key financial ratios indicate that the company is performing well relative to its sector, despite its current market valuation.
Firstly, BuzzFeed's Price-to-Earnings (PE) ratio stands at 6.81, substantially lower than the sector average of 14.51. A lower PE ratio indicates that investors are paying less for each dollar of earnings, suggesting potential for future growth and an undervalued stock.
Secondly, the Price-to-Book (PB) ratio for BuzzFeed is 0.97, compared to the sector's 2.18. A PB ratio below 1 suggests that the market values the company less than its book value, reinforcing the notion that BuzzFeed's assets are undervalued.
Additionally, BuzzFeed's net profit margin is -5.32%, significantly better than the sector's -14.66%. This indicates that BuzzFeed is losing less money per dollar of revenue than its peers, showcasing operational efficiency that could lead to potential profitability in the future.
The Return on Equity (ROE) for BuzzFeed is -9.64%, while the sector average is significantly worse at -20.99%. This suggests that BuzzFeed is generating greater value for its shareholders compared to the industry average, despite being in the negative territory.
Lastly, the Return on Assets (ROA) for BuzzFeed is -4.56%, outperforming the sector's -11.13%. This indicates that BuzzFeed is managing its assets more effectively than many of its competitors.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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