Zendesk, Inc.

NYSE:ZEN Stock Report

Market Cap: US$9.6b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Zendesk Valuation

Is ZEN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ZEN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ZEN ($77.48) is trading below our estimate of fair value ($87.2)

Significantly Below Fair Value: ZEN is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ZEN?

Key metric: As ZEN is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ZEN. This is calculated by dividing ZEN's market cap by their current revenue.
What is ZEN's PS Ratio?
PS Ratio6.1x
SalesUS$1.59b
Market CapUS$9.63b

Price to Sales Ratio vs Peers

How does ZEN's PS Ratio compare to its peers?

The above table shows the PS ratio for ZEN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average7.1x
DOCU DocuSign
5.3x6.80%US$16.0b
U Unity Software
6.1x7.23%US$10.9b
XM Qualtrics International
7.2x12.53%US$11.0b
DT Dynatrace
10x12.38%US$16.9b
ZEN Zendesk
6.1x17.04%US$9.6b

Price-To-Sales vs Peers: ZEN is good value based on its Price-To-Sales Ratio (6.1x) compared to the peer average (9.8x).

Price to Sales Ratio vs Industry

How does ZEN's PS Ratio compare vs other companies in the US Software Industry?

67 CompaniesPrice / SalesEstimated GrowthMarket Cap
VYX NCR Voyix
0.7x-11.15%US$1.83b
DSP Viant Technology
0.7x14.55%US$840.21m
RMNI Rimini Street
0.9x1.76%US$382.74m
XPER Xperi
0.8x4.54%US$371.89m
ZEN 6.1xIndustry Avg. 5.4xNo. of Companies67PS048121620+
67 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ZEN is expensive based on its Price-To-Sales Ratio (6.1x) compared to the US Software industry average (3.9x)

Price to Sales Ratio vs Fair Ratio

What is ZEN's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ZEN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio6.1x
Fair PS Ratio8.5x

Price-To-Sales vs Fair Ratio: ZEN is good value based on its Price-To-Sales Ratio (6.1x) compared to the estimated Fair Price-To-Sales Ratio (8.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ZEN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
Jun ’26n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
May ’26n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
Apr ’26n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
Mar ’26n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
Feb ’26n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
Jan ’26n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
Dec ’25n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
Nov ’25n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
Oct ’25n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
Sep ’25n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
Aug ’25n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
Jul ’25n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
Jun ’25n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
May ’25n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
Apr ’25n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
Mar ’25n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
Feb ’25n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
Jan ’25n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
Dec ’24n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
Nov ’24n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
Oct ’24n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
Sep ’24n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
Aug ’24n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10
Jul ’24n/a
US$77.55
0%
0.19%US$78.00US$77.50n/a10

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2022/11/22 05:29
End of Day Share Price 2022/11/21 00:00
Earnings2022/09/30
Annual Earnings2021/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Zendesk, Inc. is covered by 32 analysts. 15 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ishan MajumdarBaptista Research
Ryan MacWilliamsBarclays
Bradley SillsBofA Global Research