Stock Performance: Zoom Communications has seen a slight increase in its stock price recently, with a 4.9% rise over the past year, despite a significant decline of 76.1% over the last five years.
Valuation Insights: A Discounted Cash Flow analysis indicates that Zoom is undervalued by approximately 26.9%, suggesting that the market may not be fully recognizing its future cash generation potential.
Price to Earnings Ratio: Zoom's current price to earnings (PE) ratio of 16.7x is significantly lower than the industry average of 32.4x, indicating that the market is pricing the company more pessimistically than its fundamentals suggest.
Narrative Framework: Simply Wall St introduces a narrative framework that allows investors to attach their views on Zoom's future performance to financial forecasts, facilitating a more dynamic comparison of fair value against the current market price.
ZM
$89.82+Infinity%1D
Analyst Views on ZM
Wall Street analysts forecast ZM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZM is 92.84 USD with a low forecast of 69.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
Wall Street analysts forecast ZM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZM is 92.84 USD with a low forecast of 69.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Buy
13 Hold
1 Sell
Moderate Buy
Current: 89.380
Low
69.00
Averages
92.84
High
115.00
Current: 89.380
Low
69.00
Averages
92.84
High
115.00
BTIG
Allan Verkhovski
Buy
initiated
$105
2025-12-16
New
Reason
BTIG
Allan Verkhovski
Price Target
$105
2025-12-16
New
initiated
Buy
Reason
BTIG analyst Allan Verkhovski initiated coverage of Zoom Communications with a Buy rating and $105 price target.
BTIG
NULL -> Buy
initiated
$105
2025-12-16
New
Reason
BTIG
Price Target
$105
2025-12-16
New
initiated
NULL -> Buy
Reason
BTIG assumed coverage of Zoom Communications with a Buy rating and $105 price target. The firm believes Zoom can accelerate revenue growth to 5% next quarter to $5B in annualized revenue driven by its enterprise revenue growth reaching 7%. Meanwhile, the company's online business has all-time low average monthly churn of 2.7% and is likely to benefit next year from a potential price increase, the analyst tells investors in a research note.
JPMorgan
Neutral
maintain
$85 -> $90
2025-11-25
Reason
JPMorgan
Price Target
$85 -> $90
2025-11-25
maintain
Neutral
Reason
JPMorgan raised the firm's price target on Zoom Communications to $90 from $85 and keeps a Neutral rating on the shares. The company reported "steady" Q3 results and has a path to gradually improve its growth.
Morgan Stanley
Equal Weight
maintain
$85 -> $92
2025-11-25
Reason
Morgan Stanley
Price Target
$85 -> $92
2025-11-25
maintain
Equal Weight
Reason
Morgan Stanley raised the firm's price target on Zoom Communications to $92 from $85 and keeps an Equal Weight rating on the shares. Zoom's Q3 beat and FY26 raise show "solid execution" and a stable core, though near-term growth expectations remain low-to-mid single digits as investors wait for FY27 guidance, which the firm sees "limiting a narrative change or a re-rating," the analyst tells investors.
About ZM
Zoom Communications, Inc. provides an artificial intelligence (AI) work platform for human connection. Zoom Workplace, the Company’s AI-powered, open collaboration platform built for modern work, enables us to streamline communications, increase employee engagement, optimize in-person time, improve productivity, and offer customer choice with third-party apps and integrations. Zoom Workplace, powered by Zoom AI Companion, includes collaboration solutions like meetings, team chat, phone, scheduler, whiteboard, spaces, Workvivo, and more. Its communication products include Zoom Meetings, Zoom Phone, Zoom Team Chat, Zoom scheduler, and Zoom mail and calendar. Its productivity products include Zoom Docs, Zoom Whiteboard, Zoom Clips, and Zoom Tasks. Its space products include Zoom Rooms, Zoom Workspace Reservation, and Zoom Visitor Management. It serves various industries, including education, financial services, government, retail, manufacturing and healthcare.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
