Zoom Communications Inc.

BATS-CHIXE:5ZMD Stock Report

Market Cap: €24.0b

Zoom Communications Valuation

Is 5ZMD 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 5ZMD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5ZMD (€77.93) is trading below our estimate of fair value (€128.37)

Significantly Below Fair Value: 5ZMD is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5ZMD?

Key metric: As 5ZMD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 5ZMD. This is calculated by dividing 5ZMD's market cap by their current earnings.
What is 5ZMD's PE Ratio?
PE Ratio26.9x
EarningsUS$941.21m
Market CapUS$25.34b

Price to Earnings Ratio vs Peers

How does 5ZMD's PE Ratio compare to its peers?

The above table shows the PE ratio for 5ZMD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average52x
SGE Sage Group
40.4x12.5%UK£13.1b
BYIT Bytes Technology Group
21.1x6.7%UK£1.1b
GBG GB Group
117.2x36.6%UK£954.5m
ALFA Alfa Financial Software Holdings
29.4x6.3%UK£650.7m
5ZMD Zoom Communications
26.9x2.7%€25.3b

Price-To-Earnings vs Peers: 5ZMD is good value based on its Price-To-Earnings Ratio (26.9x) compared to the peer average (52x).

Price to Earnings Ratio vs Industry

How does 5ZMD's PE Ratio compare vs other companies in the GB Software Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
SORT Sorted Group Holdings
3xn/aUS$5.55m
No more companies available in this PE range
No. of Companies4PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 5ZMD is good value based on its Price-To-Earnings Ratio (26.9x) compared to the UK Software industry average (35.4x).

Price to Earnings Ratio vs Fair Ratio

What is 5ZMD'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.

5ZMD 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 5ZMD'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 5ZMD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€77.93
€85.91
+10.2%
9.8%€108.96€66.33n/a27
Nov ’25n/a
€70.87
0%
12.1%€87.73€55.41n/a26
Oct ’25n/a
€68.85
0%
12.4%€86.06€54.35n/a26
Sep ’25n/a
€67.62
0%
12.2%€84.88€53.61n/a26
Aug ’25n/a
€69.88
0%
13.0%€87.50€50.66n/a26
Jul ’25n/a
€71.26
0%
12.6%€88.73€51.37n/a26
Jun ’25n/a
€70.83
0%
11.9%€87.79€53.60n/a26
May ’25n/a
€73.52
0%
11.8%€89.03€51.55n/a27
Apr ’25n/a
€73.23
0%
11.9%€88.45€51.21n/a26
Mar ’25n/a
€73.13
0%
11.9%€87.67€50.75n/a25
Feb ’25€63.78
€73.88
+15.8%
13.7%€96.62€55.21n/a25
Jan ’25n/a
€74.92
0%
13.0%€97.55€62.24n/a25
Dec ’24n/a
€73.84
0%
13.1%€96.44€61.54€77.9325
Nov ’24n/a
€78.66
0%
12.1%€99.87€62.77n/a25
Oct ’24n/a
€77.91
0%
11.8%€98.67€62.02n/a25
Sep ’24€63.86
€76.17
+19.3%
12.2%€96.65€60.75n/a24
Aug ’24n/a
€74.33
0%
12.8%€93.74€58.03n/a24
Jul ’24n/a
€77.39
0%
12.7%€97.57€60.40n/a24
Jun ’24n/a
€78.16
0%
12.2%€97.87€60.59n/a25
May ’24€55.65
€78.42
+40.9%
10.9%€96.85€62.72n/a26
Apr ’24€67.80
€78.42
+15.7%
10.9%€96.85€62.72n/a26
Mar ’24n/a
€80.75
0%
10.8%€98.48€63.78n/a25
Feb ’24n/a
€77.42
0%
11.1%€95.58€60.99€63.7826
Jan ’24n/a
€81.41
0%
12.2%€102.96€62.71n/a26
Dec ’23n/a
€83.16
0%
12.0%€104.50€63.65n/a25

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

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