Analyzing Zynga’s Fundamentals
Deciphering Zynga’s comprehensive valuation
Zynga (ZNGA) has EV Enterprise Value of ~$2.5 billion.
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The EV-to-sales for the trailing 12 months is 3.2x, while EV-to-sales expected to be 2.7x in 2018.
Inside Zynga’s Price metrics
With a book value per share of ~$1.8, Zynga is trading at price-to-book value of 2.03x. The estimated Book Value per share of the stock is ~$1.8 for 2018.
The ratio of price-to- sales of Zynga is 4.1x while the estimated Price to Sales is 3.8x for 2018.
Of the 15 analysts covering Zynga, 7 have given it a “buy” recommendation, 1 have recommended a “sell,” and 7 have recommended a “hold.” Analysts’ stock price target for the company is $4.20 and median price target for the company is $4.25. Zynga is trading at a discount of 12.94% to its median target.
On September 26, 2017, Zynga stock generated a return of ~30.74% in the trailing 12-month period, compared to ~2.21% in the trailing one-month period. However, it lost ~4.64% in the trailing five-day period.
In comparison, FireEye, Snap, Sony Corp, and Symantec Corporation, Zynga’s peer companies in the Software sector, generated returns of 15.72%, -5.89%, -5.30% and 11.10%, respectively, in the trailing one-month period.
Zynga’s cash flow numbers on focus
Zynga has $739 million as cash in hand. Its Price-To-Cash Flow and Price-To-Free Cash Flow calculate to 39.1x and 44.9x, respectively. For the trailing 12 months, the company’s EV-to-Cash Flow to the company was 30.1x and EV-to-Free Cash Flow was 34.5x.
Zynga was the fourth largest Software player in terms of market capitalization globally at ~$3.2 billion, In comparison, peers FireEye ~$3.1 billion, Snap ~$16.7 billion, Sony Corp ~$46.6 billion and Symantec Corporation ~$20.1 billion respectively.