Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Interactive Media & Services industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Interactive Media & Services Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Interactive Media & Services Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Interactive Media & Services industry for Friday, October 04, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Interactive Media & Services industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Autohome Inc.’s Value Grade

Value Grade:

Autohome Inc. operates as an online destination for automobile consumers in the People’s Republic of China. The company delivers interactive content and tools to automobile consumers through its three websites, autohome.com.cn, che168.com, and ttpai.cn on PCs, mobile devices, mobile applications, and mini apps. It provides media services, including automaker advertising services and regional marketing campaigns; and leads generation services comprising dealer subscription services, advertising services for individual dealers, and used automobile listing and other platform-based services. The company offers Autohome Mall, an online transaction platform; and online bidding platform for used automobiles, as well as collects commissions for facilitating transactions of auto-financing and insurance products on its platform. The company was formerly known as Sequel Limited and changed its name to Autohome Inc. in October 2011. Autohome Inc. was incorporated in 2008 and is headquartered in Beijing, the People’s Republic of China.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Autohome Inc. has a Value Score of 97, which is considered to be undervalued.

When you look at Autohome Inc.’s price-to-sales ratio at 0.57 compared to the industry median at 1.25, this company has a lower price relative to revenue compared to its peers. This could make Autohome Inc.’s stock more attractive for value investors.

Autohome Inc.’s price-earnings ratio is 15.80 compared to the industry median at 24.70. This means it has a lower share price relative to earnings compared to its peers. This could make Autohome Inc. more attractive for value investors.

Now, let’s assess Autohome Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 1.3, when compared to the industry median of 14.7, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Autohome Inc.’s shareholder yield is higher than its industry median ratio of (0.80%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Autohome Inc.’s price-to-book ratio is lower than its industry median ratio of 1.06. This could make Autohome Inc. more attractive to investors looking for a new addition to their portfolio.

Cheer Holding, Inc.’s Value Grade

Value Grade:

Cheer Holding, Inc., through its subsidiaries, provides advertisement and content production services in the People’s Republic of China. It operates through Cheers APP Internet Business and Traditional Media Businesses segments. The company also engages in mobile and online advertising, and media and entertainment businesses. In addition, it operates CHEERS app, an integrated e-commerce service with professionally produced content; CHEERS Video app, a media platform that engages users with content; and CHEERS e-Mall, an e-Mall app that offers products to the users through third party merchants through live streaming, online short videos, and online games. The company also provides CHEERS Telepathy, an artificial intelligence content creation platform; CHEERS Open Data, a platform that provides industry solutions; CheerCar, an interactive entertainment app; CheerReal, a digital collection NFT app; and production, such as short videos, online variety shows, online drama, live stream, and Cheers series. In addition, it is developing CheerChat App, a social app; and CHEERS Metaverse, a platform to provide immersive digital experiences. The company was formerly known as Glory Star New Media Group Holdings Limited and changed its name to Cheer Holding, Inc. in November 2023. Cheer Holding, Inc. was founded in 2016 and is headquartered in Beijing, the People’s Republic of China.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Cheer Holding, Inc. has a Value Score of 95, which is considered to be undervalued.

Cheer Holding, Inc.’s price-earnings ratio is 0.9 compared to the industry median at 24.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Cheer Holding, Inc. more attractive for value investors.

Cheer Holding, Inc.’s price-to-book ratio is higher than its peers. This could make Cheer Holding, Inc. less attractive for value investors when compared to the industry median at 1.06.

You can read more about Cheer Holding, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Match Group, Inc.’s Value Grade

Value Grade:

Match Group, Inc. engages in the provision of dating products. Its portfolio of brands includes Tinder, Hinge, Match, Meetic, OkCupid, Pairs, Plenty Of Fish, Azar, BLK, and Hakuna, as well as a various other brands, each built to increase users’ likelihood of connecting with others. Its services are available in over 40 languages to users worldwide. The company was incorporated in 1986 and is based in Dallas, Texas.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Match Group, Inc. has a Value Score of 62, which is considered to be undervalued.

Match Group, Inc.’s price-earnings ratio is 16.2 compared to the industry median at 24.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Match Group, Inc. more attractive for value investors.

You can read more about Match Group, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Outbrain Inc.’s Value Grade

Value Grade:

Outbrain Inc., together with its subsidiaries, operates a technology platform that connects media owners and advertisers with engaged audiences to drive business outcomes worldwide. It offers a suite of solutions for media owners that facilitates content discovery and monetization for its media partners on their own sites; Onyx by Outbrain, a branding platform; AI platform that delivers customized experiences; engaging video experiences for publisher audience development and advertiser purposes; tools and services to promote organic editorial experiences to their audiences, enhancing audience engagement, recirculation, and monetization opportunities; and Keystone by Outbrain technology that extends ad server optimization. The company also provides advertising solutions for advertisers, including ad experiences, such as standard native, carousel and app install ads, outstream video, contextual pre-roll video, and high-impact display; AI-powered prediction engines; Conversion Bid Strategy tool that uses engagement data and machine learning to optimize bid strategies to hit the advertiser’s desired campaign goals; data comprising targeting offerings based on consumer interest segments, as well as complex offerings that predict audience characteristics based on contextual and interest data; Outbrain platform, which enables advertisers to optimize campaign goals, engagement, and delivering other measurable business outcomes; and full-stack buying solutions. Outbrain Inc. was incorporated in 2006 and is headquartered in New York, New York.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Outbrain Inc. has a Value Score of 81, which is considered to be undervalued.

Outbrain Inc.’s price-to-book ratio is higher than its peers. This could make Outbrain Inc. less attractive for value investors when compared to the industry median at 1.06.

You can read more about Outbrain Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Society Pass Incorporated’s Value Grade

Value Grade:

Society Pass Incorporated acquires and operates fintech and e-commerce platforms and mobile applications for consumers and merchants in Indonesia, Vietnam, Philippines, Singapore, the United States, Thailand, Malaysia, and Hong Kong. It operates through Online Grocery and Food and Groceries Deliveries, Digital Marketing, Online Ticketing and Reservation, Telecommunications Reseller, e-Commerce, and Merchant Point of Sale segments. The company operates Leflair, an online lifestyle platform that offers services and products, such as fashion and accessories, beauty and personal care, and home and lifestyle; an online food delivery service under the Handycart and Mangan brand name; and Pushkart, an online grocery delivery service. It also sells hardware and software for a point of sales application to merchants; local mobile phone and global internet data plans; and domestic and overseas air ticket, and global hotel reservations, as well as offers digital marketing services. In addition, the company provides IP licensing, computer sciences consultancy and data analytics, software production, and event organizing services. The company was formerly known as Food Society, Inc. and changed its name to Society Pass Incorporated in October 2018. Society Pass Incorporated was incorporated in 2018 and is headquartered in Singapore.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Society Pass Incorporated has a Value Score of 67, which is considered to be undervalued.

Society Pass Incorporated’s price-to-book ratio is higher than its peers. This could make Society Pass Incorporated less attractive for value investors when compared to the industry median at 1.06.

You can read more about Society Pass Incorporated’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

trivago N.V.’s Value Grade

Value Grade:

trivago N.V., together with its subsidiaries, operates a hotel and accommodation search platform in the United States, Germany, the United Kingdom, Canada, Japan, and internationally. It offers an online meta-search for hotels and accommodation through online travel agencies, hotel chains, and independent hotels. The company provides travel search for different types of accommodations, such as hotels, vacation rentals, and apartments; and enable advertiser access through website and apps. In addition, it offers access to its platform through various localized websites and apps in various languages. The company was incorporated in 2005 and is headquartered in Düsseldorf, Germany. trivago N.V. operates as a subsidiary of Expedia Lodging Partner Services Sarl.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

trivago N.V. has a Value Score of 94, which is considered to be undervalued.

trivago N.V.’s price-to-book ratio is higher than its peers. This could make trivago N.V. less attractive for value investors when compared to the industry median at 1.06.

You can read more about trivago N.V.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

WEBTOON Entertainment Inc.’s Value Grade

Value Grade:

WEBTOON Entertainment Inc. operates a storytelling platform worldwide. The company’s platform allows a community of creators and users to discover, create, and share new content. Its platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novels, which are text-based stories. The company was founded in 2014 and is headquartered in Los Angeles, California. WEBTOON Entertainment Inc. is a subsidiary of NAVER Corporation.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

WEBTOON Entertainment Inc. has a Value Score of 66, which is considered to be undervalued.

WEBTOON Entertainment Inc.’s price-to-book ratio is higher than its peers. This could make WEBTOON Entertainment Inc. less attractive for value investors when compared to the industry median at 1.06.

You can read more about WEBTOON Entertainment Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Interactive Media & Services Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Interactive Media & Services stocks as well as other industrys.

Choosing Which of the 7 Best Interactive Media & Services Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Autohome Inc. stock has a Value Grade of A.
• Cheer Holding, Inc. stock has a Value Grade of A.
• Match Group, Inc. stock has a Value Grade of B.
• Outbrain Inc. stock has a Value Grade of A.
• Society Pass Incorporated stock has a Value Grade of B.
• trivago N.V. stock has a Value Grade of A.
• WEBTOON Entertainment Inc. stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 undervalued stocks in the Interactive Media & Services industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Interactive Media & Services Stocks

Want to learn more about Interactive Media & Services stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 7 Undervalued Interactive Media & Services Stocks for Friday, October 04
• 4 Undervalued Interactive Media & Services Stocks for Thursday, October 03
• 4 Undervalued Online Services Stocks for Tuesday, October 01
• Why Kanzhun Ltd (ADR)’s (BZ) Stock Is Up 6.58%

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.