Zendesk Stock Valuation

ZEN
 Stock
  

USD 75.70  0.20  0.26%   

What is the current enterprise value of Zendesk? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Zendesk, is its stock price multiplied by the total number of shares outstanding, calculating Zendesk's enterprise value requires a different approach. It uses Zendesk's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Zendesk maintains a prevalent Real Value of $95.42 per share. The last-minute price of the company is $75.7. At this time, the company appears to be undervalued. Our model calculates the value of Zendesk from examining the company fundamentals such as Current Valuation of 9.47 B, profit margin of (18.33) %, and Return On Asset of (5.11) % as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we encourage picking up undervalued securities and discarding overvalued securities since, at some point, asset prices and their ongoing real values will grow together.
  
Zendesk Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Zendesk's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 75.70
Please note that Zendesk's price fluctuation is very steady at this time. Calculation of the real value of Zendesk is based on 3 months time horizon. Increasing Zendesk's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Zendesk is useful when determining the fair value of the Zendesk stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Zendesk. Since Zendesk is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Zendesk Stock. However, Zendesk's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
95.42
Real Value
95.74
Upside
Estimating the potential upside or downside of Zendesk helps investors to forecast how Zendesk stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Zendesk more accurately as focusing exclusively on Zendesk's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
76.0776.5776.81
Details
Hype
Prediction
LowEstimated ValueHigh
75.3875.7076.02
Details
Naive
Forecast
LowNext ValueHigh
75.4775.7876.10
Details
13 Analysts
Consensus
LowTarget PriceHigh
110.00148.62193.00
Details

Zendesk Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Zendesk's current stock value. Our valuation model uses many indicators to compare Zendesk value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Zendesk competition to find correlations between indicators driving Zendesk's intrinsic value. More Info.
Zendesk is rated first in beta category among related companies. It is rated first in price to earning category among related companies . . Comparative valuation analysis is a catch-all model that can be used if you cannot value Zendesk by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Zendesk's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Zendesk's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Zendesk's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Zendesk and how it compares across the competition.

About Zendesk Valuation

The stock valuation mechanism determines the current worth of Zendesk on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Zendesk. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Zendesk based exclusively on its fundamental and basic technical indicators. By analyzing Zendesk's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Zendesk's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Zendesk. We calculate exposure to Zendesk's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Zendesk's related companies.
Zendesk, Inc., a software development company, provides software as a service solutions for organizations in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company was founded in 2007 and is headquartered in San Francisco, California. Zendesk operates under SoftwareApplication classification in the United States and is traded on New York Stock Exchange. It employs 6000 people.

Zendesk Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Zendesk does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio1.47
Revenue Growth28.00%
Enterprise Value To Ebitda-59.12
Enterprise Value To Revenue6.24
Check out Your Current Watchlist. Note that the Zendesk information on this page should be used as a complementary analysis to other Zendesk's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Probability Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

Complementary Tools for Zendesk Stock analysis

When running Zendesk price analysis, check to measure Zendesk's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Zendesk is operating at the current time. Most of Zendesk's value examination focuses on studying past and present price action to predict the probability of Zendesk's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Zendesk's price. Additionally, you may evaluate how the addition of Zendesk to your portfolios can decrease your overall portfolio volatility.
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Is Zendesk's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Zendesk. If investors know Zendesk will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Zendesk listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Zendesk is measured differently than its book value, which is the value of Zendesk that is recorded on the company's balance sheet. Investors also form their own opinion of Zendesk's value that differs from its market value or its book value, called intrinsic value, which is Zendesk's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Zendesk's market value can be influenced by many factors that don't directly affect Zendesk's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Zendesk's value and its price as these two are different measures arrived at by different means. Investors typically determine Zendesk value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Zendesk's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.