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ZM Valuation

Zoom Communications Inc
$
74.820
-0.81(-1.071%)1D
  • Overview
  • Forecast
  • Valuation
  • Earnings

ZM Relative Valuation

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. If the market price exceeds this fair value range, ZM is overvalued; if below, it's undervalued.

Historical Valuation

Zoom Communications Inc (ZM) is now in the Fair zone, suggesting that its current forward PS ratio of 4.75 is considered Fairly compared with the five-year average of 40.64. The fair price of Zoom Communications Inc (ZM) is between 28.43 to 315.94 according to relative valuation methord.
Relative Value
Fair Zone
28.43-315.94
Current Price:75.63
Fair
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
2.58
P/B
Median3y
2.91
Median5y
15.42
7.40
FCF Yield
Median3y
6.68
Median5y
4.89

Competitors Valuation Multiple

The average P/S ratio for ZM's competitors is 6.62, providing a benchmark for relative valuation. Zoom Communications Inc Corp (ZM) exhibits a P/S ratio of 4.75, which is -28.31% above the industry average. Given its robust revenue growth of 2.93%, this premium appears unsustainable.

FAQ

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Is Zoom Communications Inc (ZM) currently overvalued or undervalued?

Zoom Communications Inc (ZM) is now in the Fair zone, suggesting that its current forward PS ratio of 4.75 is considered Fairly compared with the five-year average of 40.64. The fair price of Zoom Communications Inc (ZM) is between 28.43 to 315.94 according to relative valuation methord.
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What is Zoom Communications Inc (ZM) fair value?

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How does ZM's valuation metrics compare to the industry average?

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What is the current P/B ratio for Zoom Communications Inc (ZM) as of Jul 25 2025?

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What is the current FCF Yield for Zoom Communications Inc (ZM) as of Jul 25 2025?

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What is the current Forward P/E ratio for Zoom Communications Inc (ZM) as of Jul 25 2025?

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What is the current Forward P/S ratio for Zoom Communications Inc (ZM) as of Jul 25 2025?