PubMatic, Inc. (PUBM) stock analysis
Close on Nov 11, 2026Market cap $834.02MP/E –Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Weak8 of 30 checks passed
PubMatic passes 8 of the 30 checks behind our score; 11 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 1/6
- Past performance
- 2/6
- Financial health
- 5/6
- Dividend
- 0/6
What stands out
No debt
PubMatic has no borrowings on its latest balance sheet.
Interest well covered
No meaningful interest expense to cover.
Debt covered by cash flow
There is no debt to cover.
Gross margin improving
Gross margin was 66.3% over the last twelve months, against 64.4% a year earlier.
What to watch
Margin of safety under 20%
The price is 128% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $18.31 is above our fair value estimate of $8.03.
Return on equity under 15%
Return on equity was -0.6% over the last twelve months and averaged 7.6% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 1.3%, below the 10% that usually covers the cost of capital.
Valuation0/6
P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA above its 5-year median
PubMatic's EV/EBITDA of 267.7 is above its 5-year median of 17.4.
P/B above the industry
PubMatic's price-to-book of 3.45 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
Trading above fair value
The share price of $18.31 is above our fair value estimate of $8.03.
Margin of safety under 20%
The price is 128% above fair value, so there is no margin of safety.
Growth1/6
Revenue growing under 10% a year
Revenue grew 3.3% a year over the last three fiscal years, short of the 10% we look for.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew 4.3% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Guidance issued
The latest outlook (the third quarter of 2026 Revenue, Aug 6, 2026) was issued for the first time, so it neither adds nor takes away points.
Gross margin improving
Gross margin was 66.3% over the last twelve months, against 64.4% a year earlier.
Past performance2/6
Return on equity under 15%
Return on equity was -0.6% over the last twelve months and averaged 7.6% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 1.3%, below the 10% that usually covers the cost of capital.
Return on equity above the industry
PubMatic's return on equity of -0.6% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin below its 5-year average
Net margin was -0.5% over the last twelve months, against a 5-year average of 7.7%.
Net margin above the industry
PubMatic's net margin of -0.5% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.
Financial health5/6
No debt
PubMatic has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
No meaningful interest expense to cover.
Short-term assets cover short-term debts
Current assets are 1.29 times current liabilities.
Bankruptcy risk in the grey zone
The Altman Z-score is 2.00; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
PubMatic has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$8.03
The share price is 128% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| EV/EBITDA | 18.1× | 17.4× | 18.8× | $4.20 | 58% |
| P/B | 3.1× | 3.0× | 3.3× | $16.70 | 17% |
| Earnings power | 12.6% cost of equity | – | – | $11.18 | 25% |
| Fair value | $8.03 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 42.9
- Computer Programming, Data Processing, and Other Computer Related Services median 27.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Medium risk
- Average value traded per day
- $10.43M
- Value traded per 1% price move
- $4.64M
Downside
Medium risk
- Typical loss in a bad month
- 21.7%
- Volatility (annualized)
- 73%
- Sharpe ratio, 1 year
- 1.85
- Beta to the S&P 500 (5Y)
- 1.55
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2018 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -2.9% | +3.3% | +13.7% | – | |
| Gross profit | -5.5% | +0.9% | +10.8% | – | |
| Free cash flow | +19.5% | +9.1% | +237.2% | – |
Returns and balance sheet
8 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2018 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | 28.2% | -5.4% | |
| Return on assets | – | – | -2.0% | |
| Current ratio | – | 1.71 | 1.39 | |
| Capex to revenue | – | 16.3% | 5.1% | |
| Diluted shares | – | 17M | 47M |
Where the cash went
Fiscal 2021 to 2025, five years combined
PubMatic generated $411.50M from operations and spent $289.99M on capital expenditure, dividends and share buybacks. 38% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | -5.1% | 0.40× | 2.63× | -5.4% |
| FY2024 | 4.3% | 0.41× | 2.50× | 4.4% |
| FY2023 | 3.3% | 0.40× | 2.20× | 2.9% |
| FY2022 | 11.2% | 0.43× | 2.09× | 10.1% |
| FY2021 | 24.9% | 0.49× | 2.13× | 26.2% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero-$14.46M
- Cash generatingOperating cash flow above zero$81.06M
- Return on assets improvedROA up on the prior year1.8% → -2.0%
- Earnings backed by cashOperating cash flow above net income$81.06M vs -$14.46M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose1.37 → 1.39
- No dilutionShare count did not rise54M → 47M
- Gross margin improvedGross margin up on the prior year65.31% → 63.56%
- More efficientAsset turnover rose0.42 → 0.38
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