ZS — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($148.58)
DCF	$381.99	+157.1%
Graham Number	—	—
Reverse DCF	—	implied g: 8.5%
DDM	—	—
EV/EBITDA	—	—

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.02B

Near-term growth (yrs 1–5)(%)Rev: 25.9% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.74%

Computed WACC: 9.74%

Cost of equity (Re)10.48%(Rf 4.30% + β 1.12 × ERP 5.50%)

Cost of debt (Rd)0.47%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)92.70%

Debt weight (D/V)7.30%

Results

Intrinsic Value / share$337.64

Current Price$148.58

Upside / Downside+127.2%

Net Debt (used)-$1.65B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	17.9%	21.9%	25.9%	29.9%	33.9%
7.0%	$426.12	$498.67	$581.19	$674.68	$780.20
8.0%	$341.22	$398.41	$463.42	$537.04	$620.09
9.0%	$282.95	$329.62	$382.64	$442.65	$510.31
10.0%	$240.64	$279.68	$324.01	$374.14	$430.65
11.0%	$208.62	$241.90	$279.66	$322.35	$370.43

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $-0.25

Book Value / share($)Yahoo: $13.68

Results

Graham Number requires positive EPS and positive Book Value per share. EPS is zero or negative.

Graham Number—

Current Price$148.58

Margin of Safety—

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.74%

Terminal growth rate(%)

Computed WACC: 9.74%

Cost of equity (Re)10.48%(Rf 4.30% + β 1.12 × ERP 5.50%)

Cost of debt (Rd)0.47%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)92.70%

Debt weight (D/V)7.30%

Results

Current Price$148.58

Implied Near-term FCF Growth10.5%

Historical Revenue Growth25.9%

Historical Earnings Growth—

Base FCF (TTM)$1.02B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$148.58

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: -$68.02M

Target EV/EBITDA multipleCurrent: -327.0×

Net Debt($B)Default: -$1.65B

Results

Implied Equity Value / share$149.81

Current Price$148.58

Upside / Downside+0.8%

Implied EV$22.24B

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