Viant Technology Inc. (DSP) DCF Valuation & Fundamental Primer
Viant Technology Inc. (DSP) trades at $21.45 with a market enterprise value of $1.21B and generated $388.5M in TTM revenue and $66.0M in free cash flow (filed 2026-08-10 (period ended 2026-06-30)). Our 5-year DCF model estimates an implied intrinsic value of $22.91 per diluted share ($1.30B DCF enterprise value, Grade: A · 76/100 · High-Quality Compounder).
SEC 10-K/10-Q DCF teardown of Viant Technology Inc. (DSP): $388.5M TTM revenue (11.3% growth), 34.0% GAAP gross margin, 17.0% FCF margin, 7.6% SBC/revenue, and Rule of 40 score of 28.3%.
Viant Technology Inc. (DSP) earns a "Buy" rating and an institutional Quality Score of 76/100 (Grade A). On $388.5M in baseline revenue (11.3% growth, 34.0% gross margin, 17.0% FCF margin), our 5-year DCF yields an Enterprise Value of $1.30B ($22.91/share vs. $21.45 market price). On the R&D Return Benchmark, DSP ranks #59 of 174 (Harvesters · Grade BBB, 0.63× return).
Gross Margin & Unit Economics: Viant Technology Inc. operates at a 34.0% gross margin on $388.5M revenue (38.7 pts below the Software - Application median of 72.7%).
R&D Productivity (Harvesters · Grade BBB): Investing 6.1% of revenue in R&D ($23.7M) generates $0.63 of incremental gross profit per R&D dollar (Rank #59 of 174).
Rule of 40 & Cash Conversion: Combining 11.3% top-line growth with 17.0% FCF margin yields a 28.3% Rule of 40 score (vs. 47.2% cohort median) and $1.30B DCF Enterprise Value.
3-Statement Financial Schedule & 5-Year Horizon
Synchronized directly with the 3-Year Operating Statement (34.0% Gross Margin · 11.3% Growth)
| Income Statement Line | Year 1 (2026) | Year 2 (2027) | Year 3 (2028) |
|---|---|---|---|
| Revenue | $388.5M | $432.5M | $481.4M |
| Cost of Revenue (COGS) | ($256.4M) | ($283.3M) | ($313.0M) |
| Gross Profit & Margin | $132.1M (34.0%) | $149.2M (34.5%) | $168.5M (35.0%) |
| Research & Development (R&D) | $23.7M | $25.4M | $27.1M |
| Sales & Marketing (S&M) | $71.4M | $76.3M | $81.4M |
| General & Administrative (G&A) | $27.8M | $29.7M | $31.7M |
| Operating EBIT | $9.1M (2.4%) | $17.8M (4.1%) | $28.3M (5.9%) |
| Adjusted EBITDA | $30.0M (7.7%) | $41.0M (9.5%) | $54.1M (11.3%) |
3 Key Underwriting Risks
Structural sensitivities monitored in the 3-Statement Financial Engine
Value-Creation Levers · Quantified Statement Impact
Apply any lever below to write its operating assumptions directly into the 3-Statement Model
Automate cloud hosting & support workflows to lift gross margin from 34.0% to 39.0%.
Align R&D intensity and ASC 350-40 capitalization to the R&D Compounders cohort median, recapturing $7.8M in annual EBITDA.
Lift net dollar retention and expansion velocity by +300 bps, compounding Year 3 revenue to $507.7M.
Viant Technology Inc. (DSP) 3-Scenario DCF Valuation Range
Stress-test DSP's 5-year growth, target FCF margin, WACC, terminal methodology, and SBC/dilution friction in real time.
Simulate how deploying Gemini workflow automation and autonomous engineering expands DSP's Gross Margin, FCF Margin, DCF share price, and 2x2 R&D Return Quadrant.
Split between 5-Year Explicit Cash Flows and Discounted Terminal Value
2D Institutional Valuation Sensitivity Heatmap
Implied share price & upside/downside spread across 25 valuation states (Current Price: $21.45).
| WACC \ Terminal | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% |
|---|---|---|---|---|---|
| 8.5% | $25.12 +17% | $26.49 +23% | $28.09 +31% | $29.98 +40% | $32.25 +50% |
| 9.3% | $22.88 +7% | $23.96 +12% | $25.20 +17% | $26.64 +24% | $28.33 +32% |
| 10.0% | $21.04 -2% | $21.91 +2% | $22.89 +7% | $24.02 +12% | $25.32 +18% |
| 10.8% | $19.50 -9% | $20.21 -6% | $21.00 -2% | $21.90 +2% | $22.93 +7% |
| 11.5% | $18.19 -15% | $18.78 -12% | $19.43 -9% | $20.17 -6% | $20.99 -2% |
Institutional Software Quality Scorecard (76/100 · Grade A)
Strong fundamentals, above-average cash generation, and robust competitive positioning.
Elite deferred revenue float; FCF exceeds operating income by >20%
Disciplined equity compensation well below software industry average
Sub-par gross margins; higher cost of delivery or hardware/services mix
Positive net cash cushion; self-funding operations with zero insolvency risk
Core Investment Strengths & Moats
- High-grade cash conversion: FCF is 724% of EBIT driven by upfront annual collections
- Net cash positive: $193.1M balance sheet buffer
Key Operational & Dilution Risks
- Lower software gross margins (34.0%), indicating higher hosting or service delivery drag
Compare Viant Technology Inc. (DSP) against the software universe on the 2x2 R&D Return vs. R&D Intensity matrix.
Reverse-DCF Solver: What Growth is Priced Into DSP?
Market implies 9.4% annual revenue growth over next 5 years (18.7% dilution-adjusted), in line with company run-rate.
Headline Reverse-DCF ignores Stock-Based Compensation (7.6% of revenue) and annual share dilution (2.0%/yr). Accounting for both requires 18.7% 5-year revenue CAGR to justify $21.45/sh on a true per-share economic cash flow basis.
Viant Technology Inc. (DSP) 5-Year Fundamental Forecast
| Statement Line Item | TTM Audited Base | TTM | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|---|---|
| Revenue | $388.5M | $388.5M | $432.5M | $481.4M | $535.9M | $596.6M | $664.1M |
| Gross Profit | $132.1M | $132.1M | $147.0M | $163.7M | $182.2M | $202.8M | $225.8M |
| Operating Income (EBIT) | $9.1M | $9.1M | $10.2M | $11.3M | $12.6M | $14.0M | $15.6M |
| Stock-Based Compensation (SBC) | $29.4M | $29.4M | $32.7M | $36.4M | $40.5M | $45.1M | $50.2M |
| Unlevered Free Cash Flow (FCF) | $66.0M | $66.0M | $73.5M | $81.8M | $91.1M | $101.4M | $112.9M |
| SBC-Adjusted True Cash Flow | $36.6M | $36.7M | $40.8M | $45.4M | $50.6M | $56.3M | $62.7M |
Software - Application Peer Comparables & Rule of 40 Regression
Rule of 40 vs. EV / Revenue Multiple Regression
OLS Fit: EV/Rev = 6.7 + 0.05 × (Rule of 40) · R² = 12%Stocks below the gold regression line trade at a discount relative to their Rule of 40 compounding efficiency.
| Company | Ticker | Market Cap | TTM Revenue | Gross Margin | FCF Margin | Rule of 40 | SBC % Rev | EV / Rev |
|---|---|---|---|---|---|---|---|---|
| Viant Technology Inc. | DSP | $1.40B | $388.5M | 34.0% | 17.0% | 28.3% | 7.6% | 3.1× |
| Grab Holdings Limited | GRAB | $20.18B | $2.80B | 42.0% | 27.7% | 84.0% | 10.0% | 6.3× |
| Figma, Inc. | FIG | $18.07B | $749.0M | 88.3% | -9.2% | 39.1% | 126.5% | 23.5× |
| Full Truck Alliance Co. Ltd. | YMM | $71.73B | $11.24B | 86.6% | 25.8% | 70.2% | 4.4% | 5.9× |
| ServiceTitan, Inc. | TTAN | $9.97B | $771.9M | 64.9% | 2.0% | 30.5% | 21.2% | 12.5× |
| InterDigital, Inc. | IDCC | $8.65B | $868.5M | 80.5% | 30.6% | 55.3% | 5.3% | 9.9× |
| OPEN TEXT CORP | OTEX | $8.11B | $5.30B | 63.5% | 13.0% | 23.8% | 2.0% | 2.6× |
| Peer Cohort Median Benchmark (N=6) | 72.7% | 19.4% | 47.2% | 7.6% | 8.1× | |||
EV / Revenue Multiple Compression Stress Test
| Multiple Scenario | EV / Revenue | Implied Enterprise Value | Implied Equity Value | Implied Share Price | Delta vs Current |
|---|---|---|---|---|---|
| Current Multiple | 3.1× | $1.21B | $1.40B | $21.45 | 0.0% |
| -20% Multiple Compression | 2.5× | $964.3M | $1.16B | $17.75 | -20.0% |
| -35% Multiple Compression | 2.0× | $783.5M | $976.5M | $14.98 | -35.0% |
| Software Baseline Floor (5.0× EV/Rev) | 5.0× | $1.94B | $2.14B | $32.76 | +61.2% |
Frequently Asked Questions: Viant Technology Inc. (DSP) Valuation
What is Viant Technology Inc. (DSP)'s intrinsic DCF valuation and implied share price?
Based on audited SEC 10-K/10-Q filings and a 5-year 3-statement discounted cash flow (DCF) model, Viant Technology Inc. (DSP) has a Base Case implied value of $22.91 per share (with a Bear Case of $13.15 and a Bull Case of $34.89), compared to its current price of $21.45. The model discounts projected free cash flows at a 10.0% WACC and a 2.5% terminal growth rate.
What is Viant Technology Inc. (DSP)'s Rule of 40 score and Free Cash Flow margin?
Viant Technology Inc. achieves a Rule of 40 score of 28.3%, combining a 11.3% revenue growth run-rate with a 17.0% TTM free cash flow margin on $388.5M in trailing twelve-month revenue. In the Software - Application peer cohort, the median Rule of 40 benchmark is 47.2%.
What revenue growth rate is priced into DSP stock according to Reverse-DCF analysis?
At $21.45 per share (Enterprise Value of $1.21B), our Reverse-DCF solver indicates the market is pricing in a 5-year implied revenue CAGR of 9.4%, compared to Viant Technology Inc.'s historical CAGR of 11.3%. Overall market expectations are rated as "Fairly Priced to Fundamentals".
What is Viant Technology Inc. (DSP)'s R&D Return Score and innovation productivity?
Viant Technology Inc. (DSP) recorded N/A in FY R&D expense (tracked from SEC filings) and $157.6M in FY gross profit. It is currently unranked on the letter-grade leaderboard (pending full multi-year XBRL R&D history).
How does Viant Technology Inc. compare to Software - Application peers?
Viant Technology Inc. (DSP) earns an institutional Software Quality Score of 76/100 (Grade A — High-Quality Compounder). Across its Software - Application peer group (GRAB, FIG, YMM, TTAN, IDCC), the cohort trades at a median EV/TTM Revenue multiple of 8.1× and a median gross margin of 72.7%.
How does Stock-Based Compensation (SBC) impact Viant Technology Inc. (DSP)'s valuation?
Viant Technology Inc. recorded $29.4M in TTM stock-based compensation (7.6% of revenue). When treating SBC as a cash-equivalent compensation expense, Viant Technology Inc.'s SBC-adjusted free cash flow yield is 2.6%, scoring 21/25 on our Shareholder Dilution Friction pillar.