ZM

Zoom Communications, Inc.

Fundamental data last updated:August 14, 2026

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company profile

SECTOR

Technology

industry

Software - Application

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

08/20/2026

Business Summary

Zoom Communications, Inc. engages in the provision of a communications and collaboration platform. It operates through the following geographical segments: Americas, Asia Pacific, and Europe, Middle East, and Africa. The company was founded by Eric S. Yuan in 2011 and is headquartered in San Jose, CA.

 


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VALUATION

P/E

14.56

Market Cap ($M USD)

$30.04B

Forward P/E

17.91

PEG

-0.96

PRICE TO SALES

6.09

PRICE TO BOOK

3.03

EV / EBITDA

22.64

5-Year Average P/E

Free Cash Flow Yield

6.53%

DCF Value

$102.11

Graham Number

$73.21

Price to FCF

15.32

EV to FCF

14.90

Earnings Yield

6.87%

FCF Yield

6.53%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$7.03

Next Year EPS Growth Estimate

$5.72

Next Year Revenue Growth Estimate

$5.92B

Return on Equity (ROE)

21.79%

FREE CASH FLOW

Operating Margin

24.17%

Debt-to-Equity

0.01

Piotroski F-Score

5

Altman Z-Score

10.15

Return on Invested Capital (ROIC)

11.77%

Current Ratio

4.22

Quick Ratio

4.22

Net Debt to EBITDA

-0.64

Interest Coverage

0.00

Gross Profit margin

77.40%

FCF PER SHARE

$6.66

REVENUE PER SHARE

$16.75

Analyze ZM on TradingView

Gainseekers Quantitative Analysis

Summary

Zoom Communications, Inc. appears to be trading at a premium relative to its intrinsic value, with a snapshot price above its DCF Value and Graham Number. The Forward P/E of 19.71 suggests the market expects growth, yet the negative PEG Forward ratio indicates skepticism about future earnings acceleration. Despite this, the Altman Z-score of 11.20 signals robust financial health, mitigating bankruptcy risk. The earnings yield of 5.87% is modest, hinting at a balanced risk-reward profile for investors seeking stability over explosive growth.

AI Exposure / Tech Reliance

Operating within the dynamic Software - Application industry, Zoom is well-positioned to leverage AI advancements to enhance its platform capabilities. The sector's rapid evolution demands agility, and Zoom's technological foundation supports adaptation to emerging trends. This resilience is crucial for maintaining relevance in a competitive landscape.

The Bull Case

For value and GARP investors, Zoom offers compelling institutional tailwinds. A strong ROIC of 11.28% underscores efficient capital allocation, while a Piotroski F-Score of 6 indicates solid financial health. The company's FCF Yield of 5.98% and robust operating margin of 23.08% reflect strong cash generation and pricing power. These metrics paint a picture of a company with the ability to reinvest in growth while maintaining profitability.

The Bear Case

Despite its strengths, Zoom faces structural risks, particularly in valuation. The Price/Sales ratio of 6.61 and Price/Book of 3.30 suggest the stock is priced for perfection, leaving little room for error. Trading near its 52-week high, the stock appears technically overextended, raising concerns about potential downside. Additionally, the earnings surprise of -3.36% could indicate challenges in meeting market expectations.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$117.18

Institutional Ownership %

1-Year Beta

1.00

Insider Buying % (6 Mo)

Distance to 52-Week High

11.02%

Distance to 52-Week Low

32.50%

EARNINGS SURPRISE %

9.15%

50-DAY SMA

$91.30

200-DAY SMA

$85.57

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.