Zynga Inc, the social gaming company, is undervalued at its current market capitalisation of 7.30 billion USD on 2.6 billion USD in realised revenue for the last four quarters, be it with a negative net profit margin of - 5 % on average.
I estimate the intrinsic value of Zynga is 10 billion USD. One reason is that the gaming market will soon surpass 100 billion USD in annual recurring revenue globally.
And Zynga has innovation edge, loyal and large user base and high growth potential.
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