Zoom Video Communications, Inc.

BASE:ZMD Stock Report

Market Cap: US$25.0b

Zoom Video Communications Valuation

Is ZMD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 ZMD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ZMD ($1.81) is trading below our estimate of fair value ($2.16)

Significantly Below Fair Value: ZMD is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ZMD?

Key metric: As ZMD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ZMD. This is calculated by dividing ZMD's market cap by their current earnings.
What is ZMD's PE Ratio?
PE Ratio28.5x
EarningsUS$875.37m
Market CapUS$24.97b

Price to Earnings Ratio vs Peers

How does ZMD's PE Ratio compare to its peers?

The above table shows the PE ratio for ZMD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average80.3x
TYL Tyler Technologies
108.7x16.6%US$25.6b
PTC PTC
60.4x14.7%US$22.8b
ANSS ANSYS
51.8x15.3%US$29.1b
SPLK Splunk
100.3x26.4%US$26.4b
ZMD Zoom Video Communications
28.5x2.8%US$25.0b

Price-To-Earnings vs Peers: ZMD is good value based on its Price-To-Earnings Ratio (28.5x) compared to the peer average (80x).

Price to Earnings Ratio vs Industry

How does ZMD's PE Ratio compare vs other companies in the Global Software Industry?

32 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ZMD 28.5xIndustry Avg. 32.0xNo. of Companies75PE020406080100+
32 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ZMD is good value based on its Price-To-Earnings Ratio (28.5x) compared to the Global Software industry average (32x).

Price to Earnings Ratio vs Fair Ratio

What is ZMD'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.

ZMD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ZMD's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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