Zoom Communications Inc.

WBAG:ZOOM Stock Report

Market Cap: €24.0b

Zoom Communications Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: ZOOM (€78.63) is trading below our estimate of fair value (€134.43)

Significantly Below Fair Value: ZOOM is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ZOOM. This is calculated by dividing ZOOM's market cap by their current earnings.
What is ZOOM's PE Ratio?
PE Ratio26.9x
EarningsUS$941.21m
Market CapUS$25.34b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ZOOM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average83x
PTC PTC
63.9x14.4%US$24.0b
TYL Tyler Technologies
113.8x16.6%US$26.9b
ANSS ANSYS
54.1x15.3%US$30.7b
SPLK Splunk
100.3x26.4%US$26.4b
ZOOM Zoom Communications
26.9x2.7%€25.3b

Price-To-Earnings vs Peers: ZOOM is good value based on its Price-To-Earnings Ratio (26.9x) compared to the peer average (83x).

Price to Earnings Ratio vs Industry

How does ZOOM's PE Ratio compare vs other companies in the European Software Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ZOOM 26.9xIndustry Avg. 27.2xNo. of Companies20PE020406080100+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ZOOM is good value based on its Price-To-Earnings Ratio (26.9x) compared to the European Software industry average (27.2x).

Price to Earnings Ratio vs Fair Ratio

What is ZOOM'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.

ZOOM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ZOOM'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?

The above table shows the analyst ZOOM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€78.63
€85.91
+9.3%
9.8%€108.96€66.33n/a27
Nov ’25€69.84
€70.87
+1.5%
12.1%€87.73€55.41n/a26
Oct ’25€62.05
€68.85
+11.0%
12.4%€86.06€54.35n/a26
Sep ’25€62.31
€67.62
+8.5%
12.2%€84.88€53.61n/a26
Aug ’25€55.42
€69.88
+26.1%
13.0%€87.50€50.66n/a26
Jul ’25€55.21
€71.26
+29.1%
12.6%€88.73€51.37n/a26
Jun ’25€55.72
€70.83
+27.1%
11.9%€87.79€53.60n/a26
May ’25€57.70
€73.52
+27.4%
11.8%€89.03€51.55n/a27
Apr ’25€61.16
€73.23
+19.7%
11.9%€88.45€51.21n/a26
Mar ’25€65.03
€73.13
+12.5%
11.9%€87.67€50.75n/a25
Feb ’25€59.24
€73.88
+24.7%
13.7%€96.62€55.21n/a25
Jan ’25€65.51
€74.92
+14.4%
13.0%€97.55€62.24n/a25
Dec ’24€64.11
€73.84
+15.2%
13.1%€96.44€61.54€78.6325
Nov ’24€56.85
€78.66
+38.4%
12.1%€99.87€62.77€69.8425
Oct ’24€66.63
€77.91
+16.9%
11.8%€98.67€62.02€62.0525
Sep ’24€66.93
€76.17
+13.8%
12.2%€96.65€60.75€62.3124
Aug ’24€66.18
€74.33
+12.3%
12.8%€93.74€58.03€55.4224
Jul ’24€62.30
€77.39
+24.2%
12.7%€97.57€60.40€55.2124
Jun ’24€62.59
€78.16
+24.9%
12.2%€97.87€60.59€55.7225
May ’24€55.85
€78.42
+40.4%
10.9%€96.85€62.72€57.7026
Apr ’24€67.77
€78.42
+15.7%
10.9%€96.85€62.72€61.1626
Mar ’24€66.58
€80.75
+21.3%
10.8%€98.48€63.78€65.0325
Feb ’24€68.17
€77.42
+13.6%
11.1%€95.58€60.99€59.2426
Jan ’24€63.26
€81.41
+28.7%
12.2%€102.96€62.71€65.5126
Dec ’23€73.28
€83.16
+13.5%
12.0%€104.50€63.65€64.1125

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

Voquz Labs

€5.3m

Provides SAP license, authorization, and compliance management add on solutions.

VQLA

€5.00

7D

0%

1Y

-66.7%

IONOS Group

€3.2b

Through its subsidiaries, offers web presence and productivity, and cloud solutions in Germany, the United States, the United Kingdom, Spain, France, Poland, and Austria.

IOS

€22.80

7D

-1.1%

1Y

59.9%

TomTom

€648.2m

Develops and sells navigation and location-based products and services in Europe, North America, and internationally.

TOM2

€5.23

7D

0.4%

1Y

-15.1%