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EduPristine>Blog>Financial Modeling of Zynga

Financial Modeling of Zynga

July 15, 2011

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. Zynga’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 Groupon’s case almost all year’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 doesn’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.

You can download the model from here –

Financial Model of Zynga

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EduPristine is a member of Adtalem Global Education (NYSE: ATGE), a global education provider headquartered in the United States. Adtalem is a 3 billion dollars (20,000 crores) company that has about 9 institutions and companies with more than 16,000 employees spread across 145 locations. Adtalem takes pride in training 142,000 degree-seeking students all over the world.The organization's purpose is to empower students to achieve their goals, find success and make inspiring contributions to our global community. EduPristine is one of India's leading training providers in Analytics, Accounting, Finance, Healthcare, and Marketing. Founded in 2008, EduPristine has a strong online platform and network of classrooms across India and caters to self-paced learning and online learning, in addition to classroom learning

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