Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

ZoomInfo Technologies  / Equity Capital Markets

<p>In this insight, we provide a valuation analysis of <a href="https://www.smartkarma.com/entities/zoominfo-technologies" target="_blank" data-smartkarma-citation="entities:28879:1" rel="noopener">Zoominfo Technologies (ZI US), </a>which is a U.S. based company which operates a cloud market intelligence platform for sales and marketing teams. The company plans to offer <a href="https://www.marketwatch.com/story/zoominfo-technologies-to-offer-445-million-shares-in-planned-ipo-priced-at-16-to-18-each-2020-05-27" target="_blank" rel="noopener">44.5 million shares</a> priced at $16 to $18 each. At the top end of the IPO price range, the company would raise $801 million. This IPO is expected to price next week (during the week of 1 June 2020).</p><p>In our base case valuation, we used our sales estimate of $581.5 million in 2021E and used a P/S multiple of 15x, which is higher than the highest two P/S multiples of 13.7x (Five9 Inc) and 12.8x (Dynatrace). We believe this valuation multiple for Zoominfo Tech is appropriate mainly due to its higher sales growth rate than its peers (we think the company could achieve organic top-line growth of 25-30%+ per year in the next several years), combined with higher operating margins and returns on capital.</p><div class="content-highlight"><p><strong>Our base case valuation of Zoominfo Tech is a market cap of $8.7 billion or $22.40 per share. We used the fully diluted shares outstanding of 389.2 million shares in our valuation analysis. Our base case valuation analysis for Zoominfo Tech suggests a 32% upside from the mid-end of the IPO valuation range of $17 per share. Given the excellent upside, we like this deal. </strong></p></div>

In this insight, we provide a valuation analysis of Zoominfo Technologies (ZI US), which is a U.S. based company which operates a cloud market intelligence platform for sales and marketing teams. The company plans to offer 44.5 million shares priced at $16 to $18 each. At the top end of the IPO price range, the company would raise $801 million. This IPO is expected to price next week (during the week of 1 June 2020).In our base case valuation, we used our sales estimate of $581.5 million in 2021E and used a P/S multiple of 15x, which is higher than the highest two P/S multiples of 13.7x (Five9 Inc) and 12.8x (Dynatrace). We believe this valuation multiple for Zoominfo Tech is appropriate mainly due to its higher sales growth rate than its peers (we think the company could achieve organic top-line growth of 25-30%+ per year in the next several years), combined with higher operating margins and returns on capital.Our base case valuation of Zoominfo Tech is a market cap of $8.7 billion or $22.40 per share. We used the fully diluted shares outstanding of 389.2 million shares in our valuation analysis. Our base case valuation analysis for Zoominfo Tech suggests a 32% upside from the mid-end of the IPO valuation range of $17 per share. Given the excellent upside, we like this deal. 

Zoominfo Technologies IPO Valuation Analysis

United States

TechTarget Inc operates a portfolio of industry-specific portals.  The Company's portals deliver resources to information technology professionals within specific vertical market segments.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

TechTarget (TTGT US)

Zoominfo Technologies IPO Valuation Analysis

In this insight, we provide a valuation analysis of Zoominfo Technologies (ZI US), which is a U.S. based company which operates a cloud market...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)