Direct Digital Holdings, Inc.
FAIR PRICE VALUATION
Updated daily
Model: DCF 50% · Relative 30% · Consensus 20%
MARKET PRICE
$3.00
FAIR PRICE
$4.23
MARGIN
$1.23
P/E Ratio
N/A
Div. Yield
N/A
ROE
157.3%
Exceptional
Market Cap
$411942
Small-cap
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FPI RATING
Attractive valuation and consistent growth trajectory, but weak profitability margins and volatile earnings pattern.
Analytical data, not an investment recommendation. Updated daily.
How we calculate this ↗MARGIN OF SAFETY
A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.
SAFETY MARGIN
20%
Below fair value
ENTRY LEVEL
$3.38
Fair price × 0.80
DISTANCE
12.8%
Price to entry level
At the current price of $3.00, DRCT trades 12.8% below the conservative entry level of $3.38. The stock is currently priced below the 20% margin of safety threshold, indicating a potential value opportunity based on the model.
Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗
VALUATION HISTORY
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P/E RATIO HISTORY
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METHODOLOGY
How we calculate DRCT's fair price
Direct Digital Holdings, Inc.'s fair price of $4.23 is derived from a blended model that combines DCF analysis (50%), relative valuation against Communication Services peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $3.00, DRCT trades 41.0% below its calculated fair value.
DCF MODEL · 50%
Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting DRCT's risk profile.
RELATIVE · 30%
Comparing DRCT's valuation multiples against Communication Services peers to determine if the stock is over or undervalued relative to its industry.
ANALYST · 20%
Aggregated analyst price targets for DRCT, weighted by recency and analyst accuracy.
TRY IT YOURSELF
Want to test your own assumptions? Use our free calculators to estimate DRCT's fair value with your own inputs.
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What is the fair price of DRCT?+
Based on our blended model combining DCF analysis (50%), relative valuation against Communication Services peers (30%), and analyst consensus (20%), the fair price for Direct Digital Holdings, Inc. is $4.23. At the current market price of $3.00, DRCT trades 41.0% below its calculated fair value.
Is DRCT overvalued or undervalued?+
Direct Digital Holdings, Inc. is currently undervalued based on our valuation model. The stock trades at $3.00, which is 41.0% below the fair price of $4.23.
What is the margin of safety for DRCT?+
With a 20% margin of safety applied to the fair price of $4.23, the conservative entry level for DRCT is $3.38. At the current market price of $3.00, the stock trades 12.8% below this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.
How often is DRCT's fair price updated?+
We update fair price calculations for DRCT daily after market close. The current fair price of $4.23 incorporates the latest market data and sector multiples.
What factors affect DRCT's fair price calculation?+
DRCT's fair price of $4.23 is derived from DCF analysis (50% weight), relative valuation against Communication Services peers (30% weight), and analyst consensus (20% weight)., ROE of 157.3%.
Is DRCT a good buy right now?+
At $3.00, DRCT trades 41.0% below our fair value estimate of $4.23. The stock is currently undervalued. ROE stands at 157.3% (exceptional). Fair Price Index provides valuation data — always do your own research before investing.
Does DRCT pay dividends?+
DRCT does not currently pay a dividend.
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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.