Historical Valuation
Zoom Communications Inc (ZM) is now in the Fair zone, suggesting that its current forward PE ratio of 13.97 is considered Fairly compared with the five-year average of 28.30. The fair price of Zoom Communications Inc (ZM) is between 74.71 to 309.14 according to relative valuation methord.
Relative Value
Fair Zone
74.71-309.14
Current Price：85.65
Fair
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
Zoom Communications Inc (ZM) has a current Price-to-Book (P/B) ratio of 2.66. Compared to its 3-year average P/B ratio of 2.69 , the current P/B ratio is approximately -0.83% higher. Relative to its 5-year average P/B ratio of 7.53, the current P/B ratio is about -64.60% higher. Zoom Communications Inc (ZM) has a Forward Free Cash Flow (FCF) yield of approximately 8.11%. Compared to its 3-year average FCF yield of 7.06%, the current FCF yield is approximately 14.89% lower. Relative to its 5-year average FCF yield of 5.54% , the current FCF yield is about 46.47% lower.
P/B
Median3y
2.69
Median5y
7.53
FCF Yield
Median3y
7.06
Median5y
5.54
Competitors Valuation Multiple
AI Analysis for ZM
The average P/S ratio for ZM competitors is 10.46, providing a benchmark for relative valuation. Zoom Communications Inc Corp (ZM.O) exhibits a P/S ratio of 4.96, which is -52.6% above the industry average. Given its robust revenue growth of 4.44%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for ZM
1Y
3Y
5Y
Market capitalization of ZM increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of ZM in the past 1 year is driven by Unknown.
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Frequently Asked Questions
Is ZM currently overvalued or undervalued?
Zoom Communications Inc (ZM) is now in the Fair zone, suggesting that its current forward PE ratio of 13.97 is considered Fairly compared with the five-year average of 28.30. The fair price of Zoom Communications Inc (ZM) is between 74.71 to 309.14 according to relative valuation methord.
What is Zoom Communications Inc (ZM) fair value?
ZM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Zoom Communications Inc (ZM) is between 74.71 to 309.14 according to relative valuation methord.
How does ZM's valuation metrics compare to the industry average?
The average P/S ratio for ZM's competitors is 10.46, providing a benchmark for relative valuation. Zoom Communications Inc Corp (ZM) exhibits a P/S ratio of 4.96, which is -52.60% above the industry average. Given its robust revenue growth of 4.44%, this premium appears unsustainable.
What is the current P/B ratio for Zoom Communications Inc (ZM) as of Jan 10 2026?
As of Jan 10 2026, Zoom Communications Inc (ZM) has a P/B ratio of 2.66. This indicates that the market values ZM at 2.66 times its book value.
What is the current FCF Yield for Zoom Communications Inc (ZM) as of Jan 10 2026?
As of Jan 10 2026, Zoom Communications Inc (ZM) has a FCF Yield of 8.11%. This means that for every dollar of Zoom Communications Inc’s market capitalization, the company generates 8.11 cents in free cash flow.
What is the current Forward P/E ratio for Zoom Communications Inc (ZM) as of Jan 10 2026?
As of Jan 10 2026, Zoom Communications Inc (ZM) has a Forward P/E ratio of 13.97. This means the market is willing to pay $13.97 for every dollar of Zoom Communications Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Zoom Communications Inc (ZM) as of Jan 10 2026?
As of Jan 10 2026, Zoom Communications Inc (ZM) has a Forward P/S ratio of 4.96. This means the market is valuing ZM at $4.96 for every dollar of expected revenue over the next 12 months.