question on ZM valuation

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1

What’s the Enterprise Value of ZM? Yahoo, as of today, has it at $7.05B with a cap = $20.61B. This does not seem to be right to me. What causes the big difference between the two? Thus, P/S = 62.37 looks extremely high, while EV/Rev = 21.33 is very reasonable.

Similarly, BYND has an Enterprise Value = $888.99M, with Cap = $5.71B; P/S = 65 and EV/Rev = 10.11.

Any thoughts?

Thanks

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Klay,

Please do not use Yahoo. Their numbers are often out-of-date or downright wrong. I don’t trust them but have learned to go through the tedious process of doing it myself by using the respective company’s own financial statements, either the earnings PR, 10Q or 10K. I am not familiar with your companies but this formula is good for any company and represents the theoretical takeover price if the company were to be acquired:

Enterprise Value or EV = Market capitalization + Total debt - Cash and cash equivalents

Investopedia is a good source for any of those financial terms and calculations:

https://www.investopedia.com/terms/e/enterprisevalue.asp

https://www.investopedia.com/terms/m/marketcapitalization.as…

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Thank you for the link @imyoung, very useful link, specially for a newbie like me.

4

imyoung-

Thanks for the links. I was was wondering how Yahoo calculated the numbers.

5

I was was wondering how Yahoo calculated the numbers.

Why imyoung told you to not use Yahoo is that Yahoo doesn’t calculate the numbers, their robot-computer does, and obviously no human looks at the figures because he/she would probably immediately catch the discrepancies, while no one knows where the computer picks up its figures.
Saul

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