EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Direct Digital Holdings's Enterprise Value is $13.58 Mil.
Direct Digital Holdings's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was $-7.32 Mil. Therefore, Direct Digital Holdings's EV-to-FCF for today is -1.86.
The historical rank and industry rank for Direct Digital Holdings's EV-to-FCF or its related term are showing as below:
DRCT'
s EV-to-FCF Range Over the Past 10 Years
Min: -70.01 Med: -1.35 Max: 54.18
Current: -1.86
During the past 7 years, the highest EV-to-FCF of Direct Digital Holdings was 54.18. The lowest was -70.01. And the median was -1.35.
DRCT's EV-to-FCF is ranked worse than 100% of 610
companies
in the Media - Diversified industry
Industry Median: 11.69
vs DRCT: -1.86
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Direct Digital Holdings (NAS:DRCT) EV-to-FCF Explanation
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Direct Digital Holdings's PE Ratio (TTM) for today is calculated as:
Direct Digital Holdings's share price for today is $2.79.
Direct Digital Holdings's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $-232.680.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Advertising Agencies subindustry, Direct Digital Holdings's EV-to-FCF, along with its competitors' market caps and EV-to-FCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Direct Digital Holdings EV-to-FCF vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Direct Digital Holdings's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Direct Digital Holdings's EV-to-FCF falls into.
Direct Digital Holdings's current Enterprise Value is $13.58 Mil.
Direct Digital Holdings's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $-7.32 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Direct Digital Holdings (DRCT) has a EV-to-FCF of -1.86 as of Jul. 06, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Direct Digital Holdings and its competitors. According to the industry distribution chart, Direct Digital Holdings ranks #999999 out of 610 companies in the Media - Diversified industry.
Is Direct Digital Holdings' EV-to-FCF too high?
Direct Digital Holdings' current EV-to-FCF is -1.86. Based on the distribution chart, Direct Digital Holdings ranks #999999 out of 610 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Direct Digital Holdings has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Direct Digital Holdings' EV-to-FCF compare to HAO and DBMM?
According to the Media - Diversified industry distribution chart, Direct Digital Holdings ranks #999999 out of 610 companies for EV-to-FCF. This places Direct Digital Holdings in the lower half of its industry. The industry median EV-to-FCF is 11.69. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-FCF for a Media - Diversified company?
The median EV-to-FCF among Media - Diversified companies is 11.69, based on 610 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Direct Digital Holdings and its competitors. For the Media - Diversified industry, the median EV-to-FCF is 11.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Direct Digital Holdings's current EV-to-FCF is -1.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Direct Digital Holdings stock overvalued right now?
Based on GuruFocus' analysis, Direct Digital Holdings (DRCT) is currently considered Possible Value Trap. The stock's GF Value™ is $20.83, compared to a current price of $2.79 — trading 86.6% below its estimated fair value. The current EV-to-FCF is -1.86. Direct Digital Holdings' overall GF Score™ is 43/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Direct Digital Holdings (DRCT), the current EV-to-FCF is -1.86 as of Jul. 06, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Direct Digital Holdings (DRCT) Overvalued in 2026?
Based on GuruFocus' analysis, Direct Digital Holdings stock appears to be undervalued.
The current stock price of $2.79 is trading 86.6% below its estimated GF Value™ of $20.83.
GuruFocus considers Direct Digital Holdings to be Possible Value Trap.
Key valuation signals for DRCT:
EV-to-FCF: -1.86
GF Value™: $20.83 vs. price of $2.79 (86.6% below fair value)
No single metric tells the full story. See the DRCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Direct Digital Holdings Inc is an end-to-end, full-service programmatic advertising platform focused on providing advertising technology, data-driven campaign optimization, and other solutions to underserved and less efficient markets on both the buy-side and sell-side of the digital advertising ecosystem. The company operates two reportable segments: sell-side advertising, which includes the results of Colossus Media, and buy-side advertising, which includes the results of Orange 142 and Huddled Masses. All of the company's revenues are attributed to the United States.
43GF Score
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EV-to-FCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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