Seeking Alpha

Traditionally, when we're talking about an online business that's growing quickly both on the top and bottom lines, we're also talking "massive growth premium." You want to play, you sure have to pay.

But incredibly, there's at least one stock that's growing, innovating and yet trades at a mundane valuation. That stock is Demand Media (DMD).

Business

On a conceptual level, Demand Media's business is simple. It divides itself into two major areas:

  • Online content publishing (65% of revenue), relying on advertising and (less so) on subscriptions to monetize the published content;
  • A registrar (35% of revenue), relying on wholesale and consumer recurring revenues to keep URLs registered, along with some auxiliary services.

Indeed, Demand...

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