Stock fact sheet · data as of
Travelzoo (TZOO): fair value, margin of safety and Wheel Score
Communication Services · Internet Content & Information · United States · Blend
Is TZOO undervalued?
Travelzoo (TZOO) closed at 5.09 on 16 Oct 2026, 47% above the GLS average fair value of 3.47. 5 of the 7 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
The 7 models disagree widely: Lynch gives 0.1781 while DCF gives 11.91. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files TZOO under Blend.
Nine valuation models for TZOO
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 11.91 | +134% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | 0.7184 | -86% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 0.1781 | -97% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 0.3913 | -92% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 7.99 | +57% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 2.57 | -49% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 0.4948 | -90% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -2.37 | -147% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 9.50 | +87% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - TZOO passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 3.3 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are high - ROIC 176.4%, ROE -62.5%, ROA 10.4% - with debt at -1.35 times equity and a free-cash-flow yield of 6.2%.
Travelzoo pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from JFC Travel Group Co. 100% (quarter Q2 FY2026).
Institutional ownership scores 4/10, insider activity 6/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 176.4% |
|---|---|---|---|
| GLS Moat | 3.3 / 10 | ROE | -62.5% |
| Debt / equity | -1.35 | ROA | 10.4% |
| Free-cash-flow yield | 6.2% | Payout ratio | 0% |
| Institutions | 4 / 10 | Insiders · Congress | 6 · 5 / 10 |
Wheel Score 38: Weak
TZOO scores 38 out of 100 on the Wheel Score, in the Weak band (under 50). Value 0/25, Health 13/20, Moat 5/15, Premium 14/20, Stability 5/20. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 84% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (14 of 20) because volatility this high usually comes with a reason. Chain open interest is 2,024 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 48k shares a day on a market cap of $52M, with a beta of 1.36 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 5 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -47% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 5 / 15 | moat 3.3/10 | |
| Premium | 14 / 20 | implied volatility 84% | |
| Stability | 5 / 20 | 48k shares/day, $52M cap, beta 1.36 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Travelzoo reports earnings on 27 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Internet Content & Information
The 12 companies below are the closest to Travelzoo by market cap within the Internet Content & Information industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| PODC PodcastOne, Inc. | 1.97 | 2.37 | +17% | 34No options | $60M |
| SJ Scienjoy Holding Corporation | 0.9837 | 27.27 | +96% | 39No options | $42M |
| TEAD Teads Holding Co. | 0.4201 | - | - | 27Weak | $41M |
| ZDGE Zedge, Inc. | 2.74 | 3.05 | +10% | 45Weak | $36M |
| LVO LiveOne, Inc. | 2.54 | - | - | 29Weak | $35M |
| BODI The Beachbody Company, Inc. | 4.45 | 14.92 | +70% | 39No options | $32M |
| SEAT Vivid Seats Inc. | 2.87 | - | - | 29No options | $32M |
| LBUY Leafbuyer Technologies, Inc. | 0.3200 | 0.0780 | -310% | 15No options | $32M |
| UPXI Upexi, Inc. | 1.03 | - | - | 37Weak | $85M |
| BZFD BuzzFeed, Inc. | 1.03 | - | - | 25Weak | $90M |
| WSHP WeShop Holdings Limited Class A Ordinary Shares | 3.82 | - | - | 17No options | $98M |
| ELRE Yinfu Gold Corporation | 0.8600 | - | - | 26No options | $105M |
⚖ Compare TZOO with 7 of them All Communication Services stocks →
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Start free See the Sunday ScanQuestions about TZOO
Is TZOO undervalued right now?
No: at 5.09 the stock trades 47% above the GLS average fair value of 3.47 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of TZOO and what does it mean?
TZOO scores 38 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for TZOO?
3.47 per share as of 16 Oct 2026 - the simple average of the 7 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Travelzoo report earnings next?
The next earnings report is due on 27 Oct 2026 (before the open), 11 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does TZOO have listed options, and how liquid are they?
Yes. The nightly snapshot found 62 listed contracts with 2,024 open interest across all expiries and implied volatility of 84% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.