Zuora, Inc.

NYSE:ZUO Stock Report

Market Cap: US$1.5b

Zuora Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 ZUO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$35.88
Fair Value
72.2% undervalued intrinsic discount
3
Number of Analysts

Below Fair Value: ZUO ($9.99) is trading below our estimate of fair value ($35.88)

Significantly Below Fair Value: ZUO is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for ZUO. This is calculated by dividing ZUO's market cap by their current revenue.
What is ZUO's PS Ratio?
PS Ratio3.4x
SalesUS$452.76m
Market CapUS$1.54b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for ZUO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4x
NABL N-able
4.1x10.1%US$1.9b
ATEN A10 Networks
5.8x7.3%US$1.5b
PRGS Progress Software
3.3x8.0%US$2.5b
RPD Rapid7
2.9x7.2%US$2.4b
ZUO Zuora
3.4x6.6%US$1.5b

Price-To-Sales vs Peers: ZUO is good value based on its Price-To-Sales Ratio (3.4x) compared to the peer average (4x).

Price to Sales Ratio vs Industry

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

72 CompaniesPrice / SalesEstimated GrowthMarket Cap
VYX NCR Voyix
0.5x-22.3%US$1.86b
PGY Pagaya Technologies
0.9x15.5%US$958.26m
XPER Xperi
0.8x1.8%US$423.65m
EGHT 8x8
0.5x1.0%US$376.64m
ZUO 3.4xIndustry Avg. 5.7xNo. of Companies72PS048121620+
72 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ZUO is good value based on its Price-To-Sales Ratio (3.4x) compared to the US Software industry average (5.8x).

Price to Sales Ratio vs Fair Ratio

What is ZUO'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.

ZUO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.4x
Fair PS Ratio3.2x

Price-To-Sales vs Fair Ratio: ZUO is expensive based on its Price-To-Sales Ratio (3.4x) compared to the estimated Fair Price-To-Sales Ratio (3.2x).

Analyst Price Targets

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

Analyst Price Target
Consensus Narrative from 3 Analysts
US$10.00
Fair Value
0.1% undervalued intrinsic discount
3
Number of Analysts

Analyst Forecast: Insufficient data to show price forecast.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/11 18:51
End of Day Share Price 2025/02/11 00:00
Earnings2024/10/31
Annual Earnings2024/01/31

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

Zuora, Inc. is covered by 11 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Adam ShepherdArete Research Services LLP
Robert OliverBaird
Joseph VafiCanaccord Genuity