The Discounted Cash Flow (DCF) valuation of PubMatic Inc (PUBM) is (11.06) USD. With the latest stock price at 11.29 USD, the upside of PubMatic Inc based on DCF is -198%.

Is PUBM a buy or a sell?

Based on the latest price of 11.29 USD and our DCF valuation, PubMatic Inc (PUBM) is a sell. Selling PUBM stocks now will result in a potential gain of 198%.

Note: valuation result may not be accurate due to the low predictability of business.

	Range	Selected
WACC / Discount Rate	5.9% - 8.5%	7.2%
Long-term Growth Rate	3.0% - 5.0%	4.0%
Fair Price	(41.29) - (5.83)	(11.06)
Upside	-465.7% - -151.6%	-198.0%

11.29 USD

Stock Price

(11.06) USD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

PUBM DCF Valuation: Revenue & Expenses Forecast

(USD in millions)		Projections

	12-2024	12-2025	12-2026	12-2027	12-2028	12-2029

Revenue	291	300	334	365	407	439
% Growth	9%	3%	12%	9%	11%	8%

Cost of goods sold	(101)	(99)	(105)	(109)	(115)	(118)
% of Revenue	35%	33%	31%	30%	28%	27%

Selling, G&A expenses	(153)	(157)	(176)	(192)	(214)	(231)
% of Revenue	53%	53%	53%	53%	53%	53%

Research & Development	(33)	(34)	(38)	(42)	(46)	(50)
% of Revenue	11%	11%	11%	11%	11%	11%

Net interest & other expenses	14	14	16	17	19	21
% of Revenue	5%	5%	5%	5%	5%	5%

Tax expense	(5)	(4)	(5)	(6)	(8)	(10)
Tax rate	30%	16%	16%	16%	16%	16%

Net profit	13	20	27	34	43	52
% Margin	4%	7%	8%	9%	11%	12%