Michael Vi 1. Introduction The current shakeout on the stock market has particularly affected growth stocks – One of them is the cybersecurity company Zscaler (NASDAQ: ZS ), which temporarily delivered insane returns of around 2,000% for its investors after its IPO until the end of 2022 (see chart). ZS price % change since IPO vs major indices (YCharts) Although the stock has lost about 72% from its all-time high and has thus underperformed all the major indices, such as the S&P 500, Nasdaq as well as the Russell 2000, it still delivered a whopping return of over 500% to its investors since its IPO (see chart). Price % off high – ZS vs indices (YCharts) Well, is it worth considering an investment in ZS taking into account the current selloff? 2. Valuation In terms of valuation, I have chosen two valuation models: the enterprise value-to-sales ratio (EV/S), which adds debt and preferred shares to the market cap and subtracts cash as well as the rule of 40 by using the revenue growth rate and EBITDA margin. With regard to the EV/S ratio and the quarterly sales trend, it is striking that the EV/S ratio has logically fallen sharply […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
