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 PE ratio of 14.35 is considered Fairly compared with the five-year average of 30.35. The fair price of Zoom Communications Inc (ZM) is between 84.93 to 347.91 according to relative valuation methord.
Relative Value
Fair Zone
84.93-347.91
Current Price：85.64
Fair
14.51
PE
1Y
3Y
5Y
Trailing
Forward
8.30
EV/EBITDA
Zoom Communications Inc. (ZM) has a current EV/EBITDA of 8.30. The 5-year average EV/EBITDA is 21.18. The thresholds are as follows: Strongly Undervalued below -26.19, Undervalued between -26.19 and -2.50, Fairly Valued between 44.87 and -2.50, Overvalued between 44.87 and 68.56, and Strongly Overvalued above 68.56. The current Forward EV/EBITDA of 8.30 falls within the Historic Trend Line -Fairly Valued range.
8.81
EV/EBIT
Zoom Communications Inc. (ZM) has a current EV/EBIT of 8.81. The 5-year average EV/EBIT is 22.71. The thresholds are as follows: Strongly Undervalued below -28.09, Undervalued between -28.09 and -2.69, Fairly Valued between 48.11 and -2.69, Overvalued between 48.11 and 73.51, and Strongly Overvalued above 73.51. The current Forward EV/EBIT of 8.81 falls within the Historic Trend Line -Fairly Valued range.
5.10
PS
Zoom Communications Inc. (ZM) has a current PS of 5.10. The 5-year average PS is 9.10. The thresholds are as follows: Strongly Undervalued below -6.98, Undervalued between -6.98 and 1.06, Fairly Valued between 17.14 and 1.06, Overvalued between 17.14 and 25.18, and Strongly Overvalued above 25.18. The current Forward PS of 5.10 falls within the Historic Trend Line -Fairly Valued range.
12.96
P/OCF
Zoom Communications Inc. (ZM) has a current P/OCF of 12.96. The 5-year average P/OCF is 24.31. The thresholds are as follows: Strongly Undervalued below -14.57, Undervalued between -14.57 and 4.87, Fairly Valued between 43.75 and 4.87, Overvalued between 43.75 and 63.19, and Strongly Overvalued above 63.19. The current Forward P/OCF of 12.96 falls within the Historic Trend Line -Fairly Valued range.
14.49
P/FCF
Zoom Communications Inc. (ZM) has a current P/FCF of 14.49. The 5-year average P/FCF is 27.30. The thresholds are as follows: Strongly Undervalued below -16.46, Undervalued between -16.46 and 5.42, Fairly Valued between 49.18 and 5.42, Overvalued between 49.18 and 71.07, and Strongly Overvalued above 71.07. The current Forward P/FCF of 14.49 falls within the Historic Trend Line -Fairly Valued range.
Zoom Communications Inc (ZM) has a current Price-to-Book (P/B) ratio of 2.74. Compared to its 3-year average P/B ratio of 2.71 , the current P/B ratio is approximately 1.05% higher. Relative to its 5-year average P/B ratio of 8.86, the current P/B ratio is about -69.07% higher. Zoom Communications Inc (ZM) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 7.01%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 5.42% , the current FCF yield is about -100.00% lower.
2.77
P/B
Median3y
2.71
Median5y
8.86
7.89
FCF Yield
Median3y
7.01
Median5y
5.42
Competitors Valuation Multiple
The average P/S ratio for ZM's competitors is , providing a benchmark for relative valuation. Zoom Communications Inc Corp (ZM) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 4.44%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ZM increased by 6.09% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 17.58 to 49.83.
The secondary factor is the Revenue Growth, contributed 4.44%to the performance.
Overall, the performance of ZM in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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