Key Takeaways
- Zeta Global trades at a lower price-to-sales (P/S) multiple (~4x) than major peers, indicating potential undervaluation relative to sector benchmarks.
- With over 30% revenue growth and positive EPS projections, ZETA’s profitability is improving, potentially warranting a higher valuation multiple.
- Major competitors—including Adobe, Salesforce, and HubSpot—command P/S ratios of 6x or higher, driven by market dominance and scalable recurring revenue.
- Investor sentiment remains cautiously optimistic, though regulatory scrutiny and volatility in AI-related stocks continue to pose risk factors.
- Forecasts suggest continued revenue growth exceeding 30% annually through 2027, supporting a case for P/S re-rating if execution remains strong.
In the competitive landscape of marketing technology and enterprise software, valuations often reflect investor expectations for growth and profitability. Zeta Global Holdings Corp. (NYSE: ZETA) stands out as a potentially undervalued player when assessed against peers such as Adobe Inc. (NASDAQ: ADBE), Salesforce, Inc. (NYSE: CRM), HubSpot, Inc. (NYSE: HUBS), The Trade Desk, Inc. (NASDAQ: TTD), and Oracle Corporation (NYSE: ORCL). A price-to-sales (P/S) ratio analysis reveals that ZETA trades at a multiple that appears modest relative to these established names, suggesting room for appreciation if its growth trajectory aligns with sector trends.
Understanding Price-to-Sales in Software and MarTech
The P/S ratio serves as a key metric for evaluating high-growth companies in the software and marketing technology (MarTech) sectors, where profitability may lag behind revenue expansion due to heavy investments in AI, data analytics, and customer acquisition. Unlike price-to-earnings ratios, which can be distorted by one-off expenses or accounting adjustments, P/S focuses on top-line performance, making it particularly useful for firms like ZETA that are scaling AI-driven platforms.
In recent quarters, the MarTech industry has seen robust demand for AI-integrated solutions that enhance customer targeting and retention. Companies leveraging vast data sets and machine learning to optimise marketing campaigns have commanded premium valuations. However, disparities emerge when comparing multiples across the board. For instance, firms with entrenched market positions often trade at higher P/S ratios, reflecting their perceived stability and ecosystem dominance.
ZETA’s Positioning and Valuation Snapshot
Zeta Global operates an AI-powered marketing cloud platform that processes massive consumer data to enable personalised campaigns across channels. Its focus on operational efficiency and scalable customer relationships has driven consistent revenue growth, with reports indicating year-over-year increases exceeding 30% in recent periods. As of the latest trading data on 25 August 2025, ZETA’s shares closed at $19.55, up 6.89% from the previous close, with a market capitalisation of approximately $4.65 billion.
On a P/S basis, ZETA appears to trade at around 4 times its trailing sales, a figure that positions it below several competitors. This discount could stem from its relative youth as a public company—having gone public in 2021—compared to more mature players. Yet, with earnings per share (EPS) projections for the current year at $0.66 and forward EPS at $0.74, ZETA’s forward price-to-earnings (P/E) of 26.42 suggests improving profitability that might narrow the valuation gap.
Comparative Analysis with Key Peers
To contextualise ZETA’s valuation, consider its peers, each bringing unique strengths to the table. Adobe, a leader in creative and digital experience software, boasts a broad portfolio including tools for content creation and analytics. Its shares traded at $362.09 on 25 August 2025, reflecting a 2.45% daily gain and a market cap of $153.60 billion. Adobe’s forward P/E stands at 17.62, but its P/S multiple hovers around 6 times, buoyed by recurring revenue streams and AI enhancements like those in its Sensei platform.
Salesforce, the CRM giant, emphasises cloud-based customer relationship management with AI features via Einstein. Closing at $248.29 (up 1.00%), its market cap reached $237.37 billion. With a forward P/E of 22.31 and current year EPS estimate of $11.30, Salesforce commands a P/S near 6 times, justified by its enterprise dominance and consistent 20%+ growth rates historically.
HubSpot focuses on inbound marketing and sales software, targeting mid-market businesses. Its shares ended at $474.30, a 4.02% increase, with a market cap of $24.99 billion. HubSpot’s forward P/E is elevated at 51.95, and its P/S exceeds that of ZETA, often in the 8-10 times range, driven by high growth expectations despite recent EPS figures showing minor losses.
The Trade Desk operates in programmatic advertising, empowering buyers with data-driven ad placements. Trading at $53.20 (up 1.72%), its market cap is $26.01 billion. With a forward P/E of 27.56 and strong EPS growth to $1.93 forward, TTD’s P/S multiple typically surpasses 10 times, reflecting its position in the fast-evolving ad tech space.
Oracle, with its database and cloud infrastructure prowess, rounds out the group. Shares closed at $236.37 (up 1.38%), market cap $663.92 billion. Its forward P/E of 33.01 and robust book value of $7.29 support a P/S ratio often above 7 times, underpinned by enterprise contracts and cloud migration trends.
| Company | Market Cap (USD Bn) | Forward P/E | Approx. P/S Multiple (Est.) |
|---|---|---|---|
| Zeta Global (ZETA) | 4.65 | 26.42 | ~4x |
| Adobe (ADBE) | 153.60 | 17.62 | ~6x |
| Salesforce (CRM) | 237.37 | 22.31 | ~6x |
| HubSpot (HUBS) | 24.99 | 51.95 | ~8-10x |
| The Trade Desk (TTD) | 26.01 | 27.56 | ~10x+ |
| Oracle (ORCL) | 663.92 | 33.01 | ~7x |
Note: P/S multiples are approximate based on historical trends and recent financials as of 25 August 2025; actual figures may vary with quarterly updates.
Implications for Investors
This valuation disparity highlights ZETA’s potential as a catch-up play. If Zeta continues delivering beat-and-raise quarters—evidenced by 36% revenue growth and 53% EBITDA expansion in recent reports—it could command multiples closer to peers. Analyst sentiment, as per sources like Seeking Alpha, rates ZETA as a buy, citing its data machine’s momentum. For instance, Canaccord Genuity recently raised its price target, emphasising AI adoption.
However, risks persist. Regulatory scrutiny on data privacy, as noted in recent investigations into fiduciary practices, could pressure MarTech firms. Broader market concerns over AI hype have led to sell-offs, with ZETA’s shares fluctuating within a 52-week range of $10.69 to $38.20.
- Growth Catalysts: Expanding AI capabilities and client ARPU (average revenue per user) growth of 12-23% among scaled customers.
- Challenges: Competition from entrenched players and potential economic slowdowns affecting ad spend.
- Forecast: Analyst models project ZETA’s revenue to grow 30%+ annually through 2027, potentially justifying a P/S re-rating to 6-8x if executed.
In summary, while ZETA’s lower P/S multiple may reflect execution risks, it also presents an opportunity for discerning investors betting on the convergence of AI and marketing tech. As the sector evolves, monitoring earnings releases—such as ZETA’s on 5 August 2025—will be crucial.
References
- AdExchanger. (n.d.). Unlike Other Marketing Clouds, Zeta Global Is Betting on Its DSP. Retrieved from https://www.adexchanger.com/online-advertising/unlike-other-marketing-clouds-zeta-global-is-betting-on-its-dsp-can-it-pay-off/
- CSIMarket. (n.d.). ZETA Competitive Analysis. Retrieved from https://csimarket.com/stocks/compet_glance.php?code=ZETA
- Finviz. (n.d.). Zeta Global Holdings Corp. Quote. Retrieved from https://finviz.com/quote.ashx?t=ZETA
- Forbes. (n.d.). Zeta Global Holdings Profile. Retrieved from https://www.forbes.com/companies/zeta-global-holdings/
- Insider Monkey. (2025, August). Zeta Global: AI Dreams Turn to Nightmares. Retrieved from https://insidermonkey.com/blog/zeta-global-zeta-tumbles-as-ai-dreams-turn-to-nightmares-1594949
- Investing.com. (n.d.). Zeta Global Holdings Corp Equity Overview. Retrieved from https://www.investing.com/equities/zeta-global-holdings
- MarketBeat. (2025, August). Pinnacle Wealth Management Takes Position in Zeta Global. Retrieved from https://marketbeat.com/instant-alerts/filing-pinnacle-wealth-management-llc-takes-539000-position-in-zeta-global-holdings-corp-zeta-2025-08-18
- PitchGrade. (n.d.). Zeta Global Holdings Corp Overview. Retrieved from https://pitchgrade.com/companies/zeta-global-holdings-corp
- Seeking Alpha. (n.d.). Zeta Global Holdings: Data Machine Gaining Power. Retrieved from https://seekingalpha.com/article/4803428-zeta-global-holdings-data-machine-is-gaining-power
- Simply Wall St. (n.d.). Optimistic Investors Push Zeta Shares Higher. Retrieved from https://simplywall.st/stocks/us/software/nyse-zeta/zeta-global-holdings/news/optimistic-investors-push-zeta-global-holdings-corp-nysezeta
- StockstoTrade. (2025, August). Zeta Global Corp. News. Retrieved from https://stockstotrade.com/news/zeta-global-holdings-corp-zeta-news-2025_08_20
- Yahoo Finance. (n.d.). Zeta Global Holdings Corp. Quote. Retrieved from https://finance.yahoo.com/quote/ZETA/
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