Stock fact sheet · data as of
Zedge, Inc. (ZDGE): fair value, margin of safety and Wheel Score
Communication Services · Internet Content & Information · United States · Speculative / Distressed
Is ZDGE undervalued?
At 2.74 (close of 16 Oct 2026), ZDGE trades 10% under the GLS average fair value of 3.05. 2 of the 3 models that produced a value land above the price. A discount of this size counts as a positive margin of safety in every GLS screen; whether it is enough depends on the rest of the picture - the health score, the moat and the option premium below.
Only 3 of the nine models produced a value (DCF, 10 Cap, DDM); the others need a dividend, positive free cash flow or positive book value the company does not have yet, so the average rests on a narrow base.
The nightly engine files ZDGE under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for ZDGE
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 | 2.83 | +3% | 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 | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | 5.26 | +92% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 1.06 | -61% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | 0.9711 | -65% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 6.00 | +119% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - ZDGE passes 5 of the nine Piotroski tests, which falls one point short of 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 2.1 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 thin or negative - ROIC -9.2%, ROE -9.2%, ROA -6.7% - with debt at 0.01 times equity and a free-cash-flow yield of 10.1%.
The dividend yield is 2.63% at a payout ratio of -41%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Advertising 76%, Subscription and Circulation 24% (quarter Q3 FY2026).
Institutional ownership scores 2/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | -9.2% |
|---|---|---|---|
| GLS Moat | 2.1 / 10 | ROE | -9.2% |
| Debt / equity | 0.01 | ROA | -6.7% |
| Free-cash-flow yield | 10.1% | Payout ratio | -41% |
| Institutions | 2 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 45: Weak
ZDGE scores 45 out of 100 on the Wheel Score, in the Weak band (under 50), capped at 45 because the engine files it as Speculative / Distressed. Value 17/25, Health 11/20, Moat 3/15, Premium 13/20, Stability 6/20. 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 89% 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 (13 of 20) because volatility this high usually comes with a reason. Chain open interest is 2,695 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 42k shares a day on a market cap of $36M, with a beta of 1.19; the Stability part of the Wheel Score gives that 6 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 17 / 25 | 10% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 3 / 15 | moat 2.1/10 | |
| Premium | 13 / 20 | implied volatility 89% | |
| Stability | 6 / 20 | 42k shares/day, $36M cap, beta 1.19 |
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
Zedge, Inc. reports earnings on 22 Oct 2026 - 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 Zedge, Inc. 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 |
|---|---|---|---|---|---|
| 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 |
| TEAD Teads Holding Co. | 0.4201 | - | - | 27Weak | $41M |
| SJ Scienjoy Holding Corporation | 0.9837 | 27.27 | +96% | 39No options | $42M |
| TZOO Travelzoo | 5.09 | 3.47 | -47% | 38Weak | $52M |
| PODC PodcastOne, Inc. | 1.97 | 2.37 | +17% | 34No options | $60M |
| MNY MoneyHero Limited Class A Ordinary Shares | 0.6200 | - | - | 36Weak | $19M |
| 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 |
⚖ Compare ZDGE with 7 of them All Communication Services stocks →
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about ZDGE
Is ZDGE undervalued right now?
By the GLS models, moderately: at 2.74 the stock trades 10% below the average fair value of 3.05 (data as of 16 Oct 2026).
What is the Wheel Score of ZDGE and what does it mean?
ZDGE scores 45 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 ZDGE?
3.05 per share as of 16 Oct 2026 - the simple average of the 3 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 Zedge, Inc. report earnings next?
The next earnings report is due on 22 Oct 2026, 6 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does ZDGE have listed options, and how liquid are they?
Yes. The nightly snapshot found 64 listed contracts with 2,695 open interest across all expiries and implied volatility of 89% 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.