WallStSmart
ZIP

Ziprecruiter Inc

NYSE: ZIP · COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION

$3.74
+1.36% today

Updated 2026-09-11

Market cap
$346.99M
P/E ratio
12.79
P/S ratio
0.77x
EPS (TTM)
$0.33
Dividend yield
52W range
$2 – $6
Volume
0.8M

Ziprecruiter Inc (ZIP) Stock Valuation Analysis

Fair value estimate, historical valuation range, and quality signals for ZIP.

WallStSmart Verdict
Overvalued

Current price exceeds what fundamentals support. Risk/reward skewed unfavorably.

Smart Value Score: 35 / 100
P/E (TTM)
12.8x
vs 5Y median of 31.6x
PEG
Margin of Safety
+70.36%
Fair value $6.31 vs $3.74
EV / EBITDA
0.0x

ZIP historical valuation range

Where current P/E sits in ZIP's own 5Y range.

NOW
12.8x
5Y Low
20.4x
25th
31.6x
Median
32.5x
75th
184.0x
5Y High
ZIP is trading cheaper than 92% of the last 5Y.
8th percentile · Historically cheap

ZIP intrinsic value (DCF)

DCF-based fair value estimate vs current market price.

Current price
$3.74
Market value
Intrinsic value
$6.31
DCF estimate
Margin of safety
+70.36%
+68.7% upside to fair value

Intrinsic value calculated using discounted cash flow (DCF) model based on projected free cash flows, discount rate, and terminal growth assumptions. A positive margin of safety indicates the current price is below estimated fair value, providing a cushion against estimation error.

ZIP valuation signals

Quick-read green flags, caution flags, and risks based on current metrics.

P/E near 5Y low
Current P/E sits in the 8th percentile of its 5Y range. Historically cheap relative to its own history.
Strong margin of safety
Current price 70.4% below DCF intrinsic value estimate. Meaningful downside cushion.
Weak financial quality
Piotroski F-Score of 3/9 suggests deteriorating fundamentals. Valuation requires closer scrutiny.

P/E Ratio — History

Current: 12.79x

P/S Ratio — History

Current: 0.77x

Is ZIP overvalued in 2026?

Ziprecruiter Inc (ZIP) currently trades at $3.74 per share with a market capitalization of $346,994,000.00. Based on our multi-factor framework, the stock appears richly valued with a Smart Value Score of 35/100. This score blends growth quality, financial health, and price attractiveness into a single institutional-grade read.

The stock trades at a P/E ratio of 12.8x, below its 5-year median of 31.6x.

Looking at its own history, ZIP is currently trading cheaper than 92% of the last 5Y on P/E. This places it in the 8th percentile of its historical range, a level that has historically coincided with attractive entry points.

Our discounted cash flow model estimates ZIP's intrinsic value at $6.31 per share, against the current market price of $3.74. This implies a margin of safety of +70.36%. A meaningful cushion exists against model error, making this a reasonable risk-adjusted entry.

Financial quality is a concern. The Piotroski F-Score of 3/9 flags weakening fundamentals that deserve closer scrutiny before the valuation case can be fully trusted.

Bottom line: ZIP appears richly valued on our framework, with a Smart Value Score of 35/100. At current levels the risk/reward is skewed against the buyer. A materially lower price or significant operational improvement would be needed to change the picture.

Frequently asked questions

Is ZIP overvalued?

ZIP scores 35/100 on our Smart Value Score (Grade D), a weak overall profile. The DCF also shows a positive margin of safety, so price and fundamentals line up reasonably well.

What is ZIP's fair value?

Our DCF model estimates ZIP's intrinsic value at $6.31 per share, versus the current price of $3.74, a margin of safety of +70.36%. Fair value is the present value of the cash flows we project the business to produce, so a price below it means the market is pricing the stock below that conservative estimate.

What P/E ratio does ZIP trade at?

ZIP trades at a P/E of 12.8x on trailing twelve-month earnings, against a 5-year median of 31.6x. P/E is what you pay per dollar of profit, and sitting below its own median means the stock is cheaper than usual relative to its earnings.

Is ZIP a buy based on valuation?

Our Smart Value rating for ZIP is Sell, from a Smart Value Score of 35/100 that blends growth, quality, and valuation. The profile skews cautious, and a better price or clearer operating improvement would strengthen the case. This is research to inform your decision, not personalized financial advice.

How does ZIP's valuation compare to its history?

On P/E, ZIP sits in the 8th percentile of its own 5Y range, historically cheap relative to where it has traded. A low percentile means today's multiple is near the bottom of its historical band.

What is ZIP's Smart Value Score?

ZIP's Smart Value Score is 35/100. It is a proprietary WallStSmart metric blending growth quality, financial health, and valuation into a single 0-100 read, and scores above 75 are rare, signaling strong multi-factor alignment.