Taboola (TBLA): Evaluating Fair Value After BuzzFeed Asia Adopts DeeperDive GenAI Platform

Taboola.com (NasdaqGS:TBLA) just revealed that BuzzFeed Asia will roll out Taboola’s DeeperDive GenAI answer engine for its audiences in Singapore, Malaysia, and the Philippines. This move signals growing interest in AI-powered content engagement across Southeast Asia.

See our latest analysis for Taboola.com.

Taboola.com's move to expand its GenAI engine with BuzzFeed Asia comes after strong momentum in its share price, with a 17.6% gain over the past month and a 14.6% total shareholder return for the year. The 3-year total return of 42% highlights long-term growth, while recent activity suggests renewed optimism about its positioning in the fast-evolving media tech landscape.

If Taboola's recent surge and AI advances caught your interest, now's your chance to discover See the full list for free.

With strong growth and an expanding AI partnership, is Taboola still trading below its true value, or have recent gains already accounted for all the positive developments and future potential for investors?

Most Popular Narrative: 9% Undervalued

Taboola.com’s fair value, according to the most widely followed narrative, sits noticeably higher than the last close of $4.08. The stock stands out for investors seeking overlooked upside, driven by a bigger addressable market and AI innovation.

The launch of Realize, Taboola's new performance advertising platform, is enabling entry into a much larger pool of display and social ad budgets, positioning the company to capture incremental revenue growth outside of traditional native ad formats. This is expected to materially expand the addressable market and drive a return to double-digit revenue growth in the coming years.

Read the complete narrative.

Ready to see what’s behind this compelling upside? The financial blueprint hinges on a digital ad leap and profit expansion. Details reveal where the optimism truly lies. Want to know which bold forecast makes analysts this confident? Click through for every milestone fueling Taboola’s narrative-driven fair value.

Result: Fair Value of $4.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks remain, including execution uncertainty around new platforms such as Realize and the challenge of reigniting core growth to previous double-digit levels.

Find out about the key risks to this Taboola.com narrative.

Another View: Multiples Tell a Different Story

While our earlier analysis points to Taboola.com as undervalued, a look at market multiples paints a more expensive picture. Its price-to-earnings ratio stands at 46.5x, which is far above both the industry average of 19.5x and a fair ratio of 16x. This gap signals a premium that could add risk if growth expectations are not met. Is the excitement around future growth justified, or does this premium price raise red flags for value hunters?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Taboola.com Narrative

Prefer to verify the story for yourself or take a different angle? Dive into the data and assemble your own perspective on Taboola.com in just minutes: Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Taboola.com.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.