---
title: "Is Travelzoo (NASDAQ:TZOO) Potentially Undervalued?"
description: "Travelzoo (NASDAQ:TZOO) has seen a share price increase of over 10% recently, yet it remains undervalued compared to its industry peers, with a price-to-earnings ratio of 11.04x versus the industry av"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/237721481.md"
published_at: "2025-04-27T19:36:42.000Z"
---

# Is Travelzoo (NASDAQ:TZOO) Potentially Undervalued?

> Travelzoo (NASDAQ:TZOO) has seen a share price increase of over 10% recently, yet it remains undervalued compared to its industry peers, with a price-to-earnings ratio of 11.04x versus the industry average of 17.15x. Analysts predict a 29% profit growth in the coming years, suggesting potential for higher share valuation. Current shareholders may consider accumulating more shares, while potential investors might find it a good entry point. However, risks should be assessed before investing, as there is one warning sign identified for the company.

While Travelzoo (NASDAQ:TZOO) might not have the largest market cap around , it saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. While good news for shareholders, the company has traded much higher in the past year. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine Travelzoo’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

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## What Is Travelzoo Worth?

Good news, investors! Travelzoo is still a bargain right now according to our price multiple model, which compares the company's price-to-earnings ratio to the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. we find that Travelzoo’s ratio of 11.04x is below its peer average of 17.15x, which indicates the stock is trading at a lower price compared to the Interactive Media and Services industry. However, given that Travelzoo’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

View our latest analysis for Travelzoo

## What kind of growth will Travelzoo generate?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 29% over the next couple of years, the future seems bright for Travelzoo. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

## What This Means For You

**Are you a shareholder?** Since TZOO is currently below the industry PE ratio, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current price multiple.

**Are you a potential investor?** If you’ve been keeping an eye on TZOO for a while, now might be the time to enter the stock. Its buoyant future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy TZOO. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed assessment.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. At Simply Wall St, we found **1 warning sign for Travelzoo** and we think they deserve your attention.

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### Related Stocks

- [TZOO.US - Travelzoo](https://longbridge.com/en/quote/TZOO.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| Club Offers for Travel Enthusiasts in Canada \| TZOO Stock News | Travelzoo (NASDAQ: TZOO) has announced new Club Offers for travel enthusiasts in Canada, including a $999 4-night getawa | [Link](https://longbridge.com/en/news/276476762.md) |
| BUZZ-Travelzoo slides after earnings miss estimates | Shares of online travel agency Travelzoofall 11.64% to $5.01TZOO posts Q4 revenue of $22.47 million, slightly below LSEG | [Link](https://longbridge.com/en/news/276345646.md) |
| Club Offers for Travel Enthusiasts in the UK \| TZOO Stock News | Travelzoo (NASDAQ: TZOO) has announced new Club Offers for travel enthusiasts in the UK, including a five-night stay in  | [Link](https://longbridge.com/en/news/273259212.md) |
| Club Offers for Travel Enthusiasts in Canada \| TZOO Stock News | Travelzoo (NASDAQ: TZOO) has announced new Club Offers for travel enthusiasts in Canada, including: $1299 for a 6-night  | [Link](https://longbridge.com/en/news/272294101.md) |
| Club Offers for Travel Enthusiasts in the U.S. \| TZOO Stock News | Travelzoo (NASDAQ: TZOO) has announced a new Club Offer for U.S. members, featuring a luxurious three-night Caribbean es | [Link](https://longbridge.com/en/news/272300411.md) |

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
