Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Ziff Davis reported its second quarter of fiscal year 2026 results amid significant corporate activity, including completing the sale of its Connectivity business to Accenture for $1.2 billion—a transaction valuing that segment at a 14.5x multiple of trailing adjusted EBITDA less CapEx. This divestiture underscores Ziff Davis’s active portfolio management approach aimed at closing the gap between market valuation and intrinsic business value.</li><li>The company has also been engaged in sizeable share repurchases, buying back approximately 4.5 million shares in 2026 to reduce share count by nearly 11%, supporting adjusted earnings per share growth despite a year-over-year revenue decline.</li><li>The company now reports on four remaining segments following the Connectivity sale: Tech & Shopping, Gaming & Entertainment, Health & Wellness, and Cybersecurity & Martech.</li></ul>

Ziff Davis reported its second quarter of fiscal year 2026 results amid significant corporate activity, including completing the sale of its Connectivity business to Accenture for $1.2 billion—a transaction valuing that segment at a 14.5x multiple of trailing adjusted EBITDA less CapEx. This divestiture underscores Ziff Davis’s active portfolio management approach aimed at closing the gap between market valuation and intrinsic business value.The company has also been engaged in sizeable share repurchases, buying back approximately 4.5 million shares in 2026 to reduce share count by nearly 11%, supporting adjusted earnings per share growth despite a year-over-year revenue decline.The company now reports on four remaining segments following the Connectivity sale: Tech & Shopping, Gaming & Entertainment, Health & Wellness, and Cybersecurity & Martech.

Ziff Davis & Accenture’s $1.2 Billion Deal Crystallizes Hidden Portfolio Value!

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Event-Driven

<ul><li>Last week, the company agreed to sell its Connectivity division for $1.2BN, a price that exceeded the company’s entire market capitalization at the time of the announcement.</li><li>The sale demonstrates that the public market has been significantly undervaluing Ziff Davis’s underlying assets.</li><li>Following updated assumptions in my sum-of-the-parts (SOTP) analysis, I estimate fair value at $63 per share, implying roughly ~50% upside from the current stock price</li></ul>

Last week, the company agreed to sell its Connectivity division for $1.2BN, a price that exceeded the company’s entire market capitalization at the time of the announcement.The sale demonstrates that the public market has been significantly undervaluing Ziff Davis’s underlying assets.Following updated assumptions in my sum-of-the-parts (SOTP) analysis, I estimate fair value at $63 per share, implying roughly ~50% upside from the current stock price

Ziff Davis: A $1.2BN Sale Highlights Hidden Value

<ul><li>Ziff Davis recently stunned investors with a transaction that exposed a striking valuation paradox.</li><li>The digital media and internet company agreed to sell its connectivity division to Accenture for $1.2 billion in cash, a price that exceeded Ziff Davis’ market capitalization prior to the announcement.</li><li>The division includes well-known internet infrastructure tools such as Ookla’s Speedtest, Downdetector, RootMetrics, and Ekahau, which together generated roughly $231 million in revenue last year—about 16% of the company’s total.</li></ul>

Ziff Davis recently stunned investors with a transaction that exposed a striking valuation paradox.The digital media and internet company agreed to sell its connectivity division to Accenture for $1.2 billion in cash, a price that exceeded Ziff Davis’ market capitalization prior to the announcement.The division includes well-known internet infrastructure tools such as Ookla’s Speedtest, Downdetector, RootMetrics, and Ekahau, which together generated roughly $231 million in revenue last year—about 16% of the company’s total.

Ziff Davis’ $1.2 Billion Accenture Deal Raises A Big Question For Investors

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Some of my favorite setups are stocks that are cheap on both an absolute and sum-of-the-parts (SOTP) basis.
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Ziff Davis fits that profile well. At ~3.7× EBITDA and ~5× free cash flow, the stock is clearly cheap on an absolute basis.
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On a SOTP basis, one can reasonably argue the stock is worth 50% to 100% more than where it currently trades.
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</ul>



Some of my favorite setups are stocks that are cheap on both an absolute and sum-of-the-parts (SOTP) basis.


Ziff Davis fits that profile well. At ~3.7× EBITDA and ~5× free cash flow, the stock is clearly cheap on an absolute basis.


On a SOTP basis, one can reasonably argue the stock is worth 50% to 100% more than where it currently trades.



<ul><li>Ziff Davis reported its third-quarter 2025 financial performance with a nearly 3% growth in revenues, though adjusted EBITDA experienced a slight decline.</li><li>This period marks the company's fifth consecutive quarter of revenue growth.</li><li>Notably, its adjusted diluted earnings per share (EPS) increased by 7%, attributed partly to an increased share repurchase activity to capitalize on the current valuation disconnect.</li></ul>

Ziff Davis reported its third-quarter 2025 financial performance with a nearly 3% growth in revenues, though adjusted EBITDA experienced a slight decline.This period marks the company's fifth consecutive quarter of revenue growth.Notably, its adjusted diluted earnings per share (EPS) increased by 7%, attributed partly to an increased share repurchase activity to capitalize on the current valuation disconnect.

Ziff Davis Is Going All-In on AI — But Can HALO & IMAGINE Become Its Next Growth Engine?

United States

Ziff Davis, Inc. operates as a digital media and Internet company. The Company provides portfolio which includes brands in technology, entertainment, shopping, health, cybersecurity, and martech. Ziff Davis serves customers worldwide.

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Ziff Davis (ZD US)

Ziff Davis & Accenture’s $1.2 Billion Deal Crystallizes Hidden Portfolio Value!

Ziff Davis reported its second quarter of fiscal year 2026 results amid significant corporate activity, including completing the sale of its...

Baptista Research

Ziff Davis: A $1.2BN Sale Highlights Hidden Value

Last week, the company agreed to sell its Connectivity division for $1.2BN, a price that exceeded the company’s entire market capitalization at...

Richard Howe

Ziff Davis’ $1.2 Billion Accenture Deal Raises A Big Question For Investors

Ziff Davis recently stunned investors with a transaction that exposed a striking valuation paradox. The digital media and internet company agreed...

Baptista Research

[Alert] Buy Ziff Davis

Some of my favorite setups are stocks that are cheap on both an absolute and sum-of-the-parts (SOTP) basis. Ziff Davis fits that profile well. At...

Richard Howe

Ziff Davis Is Going All-In on AI — But Can HALO & IMAGINE Become Its Next Growth Engine?

Ziff Davis reported its third-quarter 2025 financial performance with a nearly 3% growth in revenues, though adjusted EBITDA experienced a slight...

Baptista Research

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