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Zendesk (BSP:Z2EN34) Cyclically Adjusted Price-to-FCF : (As of May. 05, 2024)


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What is Zendesk Cyclically Adjusted Price-to-FCF?

Shiller PE for Stocks: The True Measure of Stock Valuation


Zendesk Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Zendesk's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Zendesk Cyclically Adjusted Price-to-FCF Chart

Zendesk Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Cyclically Adjusted Price-to-FCF
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Zendesk Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
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Competitive Comparison of Zendesk's Cyclically Adjusted Price-to-FCF

For the Software - Application subindustry, Zendesk's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Zendesk's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

For the Software industry and Technology sector, Zendesk's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Zendesk's Cyclically Adjusted Price-to-FCF falls into.



Zendesk Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Zendesk's Cyclically Adjusted FCF per Share for the quarter that ended in Sep. 2022 is calculated as:

For example, Zendesk's adjusted Free Cash Flow per Share data for the three months ended in Sep. 2022 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Sep. 2022 (Change)*Current CPI (Sep. 2022)
=0.072/125.2265*125.2265
=0.072

Current CPI (Sep. 2022) = 125.2265.

Zendesk Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201212 0.000 96.871 0.000
201303 -0.010 98.209 -0.013
201306 -0.006 98.518 -0.008
201309 -0.005 98.790 -0.006
201312 0.001 98.326 0.001
201403 -0.015 99.695 -0.019
201406 -0.050 100.560 -0.062
201409 -0.007 100.428 -0.009
201412 -0.005 99.070 -0.006
201503 -0.027 99.621 -0.034
201506 -0.011 100.684 -0.014
201509 -0.024 100.392 -0.030
201512 0.001 99.792 0.001
201603 0.000 100.470 0.000
201606 -0.016 101.688 -0.020
201609 -0.014 101.861 -0.017
201612 0.024 101.863 0.030
201703 0.001 102.862 0.001
201706 0.010 103.349 0.012
201709 0.003 104.136 0.004
201712 0.026 104.011 0.031
201803 0.015 105.290 0.018
201806 0.021 106.317 0.025
201809 0.019 106.507 0.022
201812 0.032 105.998 0.038
201903 0.020 107.251 0.023
201906 0.026 108.070 0.030
201909 0.017 108.329 0.020
201912 0.039 108.420 0.045
202003 -0.045 108.902 -0.052
202006 -0.181 108.767 -0.208
202009 0.078 109.815 0.089
202012 0.113 109.897 0.129
202103 0.083 111.754 0.093
202106 0.059 114.631 0.064
202109 0.193 115.734 0.209
202112 0.088 117.630 0.094
202203 0.002 121.301 0.002
202206 0.112 125.017 0.112
202209 0.072 125.227 0.072

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Zendesk  (BSP:Z2EN34) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Zendesk Cyclically Adjusted Price-to-FCF Related Terms

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Zendesk (BSP:Z2EN34) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » Zendesk Inc (BSP:Z2EN34) » Definitions » Cyclically Adjusted Price-to-FCF
Traded in Other Exchanges
N/A
Address
989 Market Street, San Francisco, CA, USA, 94103
Founded in 2007, Zendesk provides a portfolio of customer engagement software solutions via single applications or the Sunshine suite. Its software unifies customer communication and data across various channels and business units, and simplifies customer service and engagement across self service, phone, chat, messaging, and email.

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