Zoom Communications, Inc.

NasdaqGS:ZM Stock Report

Market Cap: US$26.9b

Zoom Communications Valuation

Is ZM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of ZM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: ZM ($89.08) is trading below our estimate of future cash flow value ($127)

Significantly Below Future Cash Flow Value: ZM is trading below future cash flow value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ZM?

Key metric: As ZM is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ZM. This is calculated by dividing ZM's market cap by their current earnings.
What is ZM's PE Ratio?
PE Ratio16.5x
EarningsUS$1.59b
Market CapUS$26.89b

Price to Earnings Ratio vs Peers

How does ZM's PE Ratio compare to its peers?

The above table shows the PE ratio for ZM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average34.6x
FICO Fair Isaac
49x18.52%US$32.9b
PTC PTC
22.4x4.80%US$18.0b
ROP Roper Technologies
24.4x9.82%US$38.3b
TRMB Trimble
42.6x23.49%US$15.5b
ZM Zoom Communications
16.5x-6.12%US$26.9b

Price-To-Earnings vs Peers: ZM is good value based on its Price-To-Earnings Ratio (16.5x) compared to the peer average (40.1x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does ZM's PE Ratio compare vs other companies in the US Software Industry?

15 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MSTR Strategy
4.5x42.45%US$41.82b
MARA MARA Holdings
2.7x-97.66%US$3.13b
PD PagerDuty
4.7x-67.31%US$795.26m
BTBT Bit Digital
3.6x-118.99%US$572.67m
ZM 16.5xIndustry Avg. 25.7xNo. of Companies17PE020406080100+
15 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ZM is good value based on its Price-To-Earnings Ratio (16.5x) compared to the US Software industry average (25.7x).

Price to Earnings Ratio vs Fair Ratio

What is ZM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ZM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.5x
Fair PE Ratio22.4x

Price-To-Earnings vs Fair Ratio: ZM is good value based on its Price-To-Earnings Ratio (16.5x) compared to the estimated Fair Price-To-Earnings Ratio (22.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ZM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$89.08
US$97.59
+9.56%
12.50%US$115.00US$69.00n/a27
Jan ’27US$86.29
US$94.96
+10.05%
11.83%US$115.00US$69.00n/a27
Dec ’26US$84.94
US$94.58
+11.35%
11.91%US$115.00US$69.00n/a26
Nov ’26US$87.23
US$92.77
+6.35%
12.05%US$115.00US$67.00n/a26
Oct ’26US$81.28
US$92.67
+14.01%
11.85%US$115.00US$67.00n/a27
Sep ’26US$81.42
US$91.63
+12.54%
12.10%US$115.00US$67.00n/a27
Aug ’26US$70.97
US$90.96
+28.17%
10.86%US$115.00US$65.00n/a28
Jul ’26US$77.57
US$91.14
+17.50%
10.70%US$115.00US$65.00n/a29
Jun ’26US$81.25
US$91.53
+12.65%
10.05%US$115.00US$65.00n/a29
May ’26US$77.25
US$88.84
+15.00%
11.28%US$115.00US$65.00n/a28
Apr ’26US$74.02
US$91.08
+23.05%
9.77%US$115.00US$70.00n/a29
Mar ’26US$73.70
US$91.14
+23.67%
9.27%US$115.00US$70.00n/a29
Feb ’26US$86.94
US$91.97
+5.78%
8.67%US$115.00US$75.00US$92.1028
Jan ’26US$81.61
US$91.60
+12.24%
9.82%US$115.00US$70.00US$86.2927
Dec ’25US$82.69
US$90.67
+9.65%
9.84%US$115.00US$70.00US$84.9427
Nov ’25US$75.60
US$76.74
+1.50%
12.14%US$95.00US$60.00US$87.2326
Oct ’25US$68.64
US$76.00
+10.73%
12.43%US$95.00US$60.00US$81.2826
Sep ’25US$69.08
US$75.68
+9.55%
12.16%US$95.00US$60.00US$81.4226
Aug ’25US$58.97
US$75.87
+28.66%
12.97%US$95.00US$55.00US$70.9726
Jul ’25US$59.21
US$76.29
+28.85%
12.61%US$95.00US$55.00US$77.5726
Jun ’25US$61.34
US$76.64
+24.95%
11.91%US$95.00US$58.00US$81.2526
May ’25US$61.61
US$78.44
+27.32%
11.82%US$95.00US$55.00US$77.2527
Apr ’25US$64.73
US$78.66
+21.52%
11.90%US$95.00US$55.00US$74.0226
Mar ’25US$70.91
US$79.25
+11.76%
11.88%US$95.00US$55.00US$73.7025
Feb ’25US$64.85
US$80.29
+23.81%
13.72%US$105.00US$60.00US$86.9425
US$97.59
Fair Value
8.7% undervalued intrinsic discount
27
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/02/05 10:09
End of Day Share Price 2026/02/05 00:00
Earnings2025/10/31
Annual Earnings2025/01/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Zoom Communications, Inc. is covered by 48 analysts. 30 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Joseph BonnerArgus Research Company
null nullArgus Research Company
William PowerBaird