ZM Stock Overview
Provides an Artificial Intelligence-first work platform for human connection in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. More details
Snowflake Analysis
Very undervalued with flawless balance sheet.
Community vs My Fair Value
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Valuation Range from 6 fair values
Custom AI Companion May Boost Productivity But Faces Adoption Uncertainties
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Zoom Communications Inc. Competitors
Price History & Performance
Recent News & Updates
Zoom Communications' (NASDAQ:ZM) Performance Is Even Better Than Its Earnings Suggest
Mar 07
Zoom Communications: 2 Things That Would Make Us Buy - Maintaining Hold
Feb 25Zoom Looks Undervalued Ahead Of Q4 Earnings
Feb 19Recent updates
Zoom Communications' (NASDAQ:ZM) Performance Is Even Better Than Its Earnings Suggest
Mar 07Zoom Communications: 2 Things That Would Make Us Buy - Maintaining Hold
Feb 25Zoom Looks Undervalued Ahead Of Q4 Earnings
Feb 19Some Shareholders Feeling Restless Over Zoom Communications Inc.'s (NASDAQ:ZM) P/E Ratio
Feb 01Zoom Communications Could Be A Value Trap At This Point
Jan 29Zoom: A Perfect Value Play For 2025
Dec 27An Intrinsic Calculation For Zoom Communications Inc. (NASDAQ:ZM) Suggests It's 35% Undervalued
Dec 23Zoom Q3 Preview: Business Is Accelerating
Nov 24Zoom's Limited Growth Prospects Cap Its Investment Potential
Oct 28Some Confidence Is Lacking In Zoom Video Communications, Inc.'s (NASDAQ:ZM) P/E
Oct 17Zoom: Ready To Move Higher (Rating Upgrade)
Sep 24
AI Ambitions And Expansions Could Squeeze The Company's Profit Margins And Stir Investor Concerns
Aug 29 Investment in new features and AI capabilities might pressure near-term profits due to high R&D and market development costs.Zoom Video Communications, Inc. Just Beat EPS By 45%: Here's What Analysts Think Will Happen Next
Aug 27Zoom: Strong Bookings Indicate Growth Trough Is Behind Us
Aug 26Zoom Video Q2 Preview: Big Quarter, Massive Upside
Aug 19Zoom Is Now A Value Stock
Aug 06Zoom Video: Top Tech Pick, 40% Net Cash, GAAP Profitability, 11x Earnings
Jul 15Zoom Video: Inflection Point (Rating Upgrade)
Jul 01Zoom Video Communications: Market Leader Priced At A Bargain Valuation
Jun 13Zoom Video: An Interesting Buy Proposition You Have To See To Believe
Jun 05Zoom Q1: AI Translation Could Be Big
May 27Zoom Video Communications, Inc.'s (NASDAQ:ZM) Business Is Trailing The Industry But Its Shares Aren't
May 21Zoom Stock Is Still Looking For Direction (Technical Analysis)
May 14Is Zoom Video Communications, Inc. (NASDAQ:ZM) Trading At A 50% Discount?
Apr 23Zoom Video: Microsoft Team's Unbundling Adds Fire To The Transition Spark
Apr 05Zoom Video Communications: Phone And Contact Center Drive Future Growth, Time To Buy
Mar 05Zoom Q4 Earnings Review: Decent Quarter, Weird Guidance
Feb 27Zoom Video Communications Has A Future
Feb 02Is Zoom The Next Takeout Target? 30% Net Cash And 39% Margins
Jan 25Shareholder Returns
| ZM | US Software | US Market | |
|---|---|---|---|
| 7D | -2.4% | -3.0% | -3.5% |
| 1Y | 4.7% | 3.6% | 11.9% |
Return vs Industry: ZM exceeded the US Software industry which returned -0.7% over the past year.
Return vs Market: ZM underperformed the US Market which returned 8.8% over the past year.
Price Volatility
Stable Share Price: ZM has not had significant price volatility in the past 3 months compared to the US market.
Volatility Over Time: ZM's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2011 | 7,412 | Eric Yuan | www.zoom.com |
Zoom Communications Inc. provides an Artificial Intelligence-first work platform for human connection in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, a cloud phone system; and Zoom Team Chat enables users to share messages, images, files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Mail and Calendar; Zoom Workflow Automation, a no-code workflow builder that helps users build workflows across Zoom Workplace and third-party applications; Zoom Docs, a modular workspace; Zoom Whiteboard, an interactive canvas; and Zoom Clips for capturing video and screen content.
Zoom Communications Inc. Fundamentals Summary
22.1x
P/E Ratio4.8x
P/S RatioIs ZM overvalued?
See Fair Value and valuation analysisEarnings & Revenue
Last Reported Earnings
Jan 31, 2025
Next Earnings Date
n/a
| Earnings per share (EPS) | 3.31 |
| Gross Margin | 75.79% |
| Net Profit Margin | 21.65% |
| Debt/Equity Ratio | 0% |
How did ZM perform over the long term?
See historical performance and comparisonValuation
Is ZM undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
6/6Valuation Score 6/6
Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast
Share Price vs Fair 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.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for ZM?
Price to Earnings Ratio vs Peers
How does ZM's PE Ratio compare to its peers?
Price to Earnings Ratio vs Industry
How does ZM's PE Ratio compare vs other companies in the US Software Industry?
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.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
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Future Growth
Future criteria checks 0/6
Zoom Communications is forecast to grow earnings and revenue by 2.1% and 3% per annum respectively. EPS is expected to grow by 1.8% per annum. Return on equity is forecast to be 15.8% in 3 years.
Future Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
Key information
2.1%
Earnings growth rate
1.8%
EPS growth rate
| Software earnings growth | 17.1% |
| Revenue growth rate | 3.0% |
| Future return on equity | 15.8% |
| Analyst coverage | Good |
| Last updated | 10 Mar 2025 |
Recent future growth updates
Recent updates
Zoom Communications' (NASDAQ:ZM) Performance Is Even Better Than Its Earnings Suggest
Mar 07Zoom Communications: 2 Things That Would Make Us Buy - Maintaining Hold
Feb 25Zoom Looks Undervalued Ahead Of Q4 Earnings
Feb 19Some Shareholders Feeling Restless Over Zoom Communications Inc.'s (NASDAQ:ZM) P/E Ratio
Feb 01Zoom Communications Could Be A Value Trap At This Point
Jan 29Zoom: A Perfect Value Play For 2025
Dec 27An Intrinsic Calculation For Zoom Communications Inc. (NASDAQ:ZM) Suggests It's 35% Undervalued
Dec 23Zoom Q3 Preview: Business Is Accelerating
Nov 24Zoom's Limited Growth Prospects Cap Its Investment Potential
Oct 28Some Confidence Is Lacking In Zoom Video Communications, Inc.'s (NASDAQ:ZM) P/E
Oct 17Zoom: Ready To Move Higher (Rating Upgrade)
Sep 24AI Ambitions And Expansions Could Squeeze The Company's Profit Margins And Stir Investor Concerns
Aug 29 Investment in new features and AI capabilities might pressure near-term profits due to high R&D and market development costs.Zoom Video Communications, Inc. Just Beat EPS By 45%: Here's What Analysts Think Will Happen Next
Aug 27Zoom: Strong Bookings Indicate Growth Trough Is Behind Us
Aug 26Zoom Video Q2 Preview: Big Quarter, Massive Upside
Aug 19Zoom Is Now A Value Stock
Aug 06Zoom Video: Top Tech Pick, 40% Net Cash, GAAP Profitability, 11x Earnings
Jul 15Zoom Video: Inflection Point (Rating Upgrade)
Jul 01Zoom Video Communications: Market Leader Priced At A Bargain Valuation
Jun 13Zoom Video: An Interesting Buy Proposition You Have To See To Believe
Jun 05Zoom Q1: AI Translation Could Be Big
May 27Zoom Video Communications, Inc.'s (NASDAQ:ZM) Business Is Trailing The Industry But Its Shares Aren't
May 21Zoom Stock Is Still Looking For Direction (Technical Analysis)
May 14Is Zoom Video Communications, Inc. (NASDAQ:ZM) Trading At A 50% Discount?
Apr 23Zoom Video: Microsoft Team's Unbundling Adds Fire To The Transition Spark
Apr 05Zoom Video Communications: Phone And Contact Center Drive Future Growth, Time To Buy
Mar 05Zoom Q4 Earnings Review: Decent Quarter, Weird Guidance
Feb 27Zoom Video Communications Has A Future
Feb 02Is Zoom The Next Takeout Target? 30% Net Cash And 39% Margins
Jan 25Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings per Share Growth Forecasts
Future Return on Equity
Discover growth companies
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2025/03/12 06:47 |
| End of Day Share Price | 2025/03/11 09:00 |
| Earnings | 2025/01/31 |
| Annual Earnings | 2025/01/31 |
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.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
| |
| Analyst Consensus Estimates | +3 years |
|
|
| Market Prices | 30 years |
| |
| Ownership | 10 years |
| |
| Management | 10 years |
| |
| Key Developments | 10 years |
|
* 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. 33 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| null null | Argus Research Company |
| Joseph Bonner | Argus Research Company |
| William Power | Baird |
