Both Groupon and Zynga are coming up with big IPOs. Groupon make us skeptical about multi-billion dollar valuation and claims because of their business model. Zyngaâ€™s model of social gaming clears some air by showing real profits on their P&L.
The social gaming firm which relies almost solely on Facebook for its revenues recently filed for S1, and had our modeling team poring through their financials for a number of days.
One aspect that is common in both the business models is that both show high probability to bankruptcy when we use Altman-Z Score on their numbers.
In Grouponâ€™s case almost all yearâ€™s Z-Scores are negative whereas Zynga has Z-Score in safe zone from bankruptcy.
Will these two so called fastest growing companies of the decade show signs of insolvency or the discriminant analysis such as Altman Z-score doesnâ€™t apply to these fastest growing companies in the world?
To check out the model, click here or right click on the link and select Save As.
Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc
CFA® Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA® Institute, CFA®, CFA® Institute Investment Foundations™ and Chartered Financial Analyst® are trademarks owned by CFA® Institute.
Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to email@example.com and we will rectify it.
2017 © Edupristine. ALL Rights Reserved.