Zoom Video Communications, Inc.

BATS-CHIXE:5ZMD Stock Report

Market Cap: €19.9b

Zoom Video 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 (€53.93) is trading below our estimate of fair value (€105.24)

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 Ratio24.9x
EarningsUS$875.37m
Market CapUS$21.75b

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 Average32.8x
SGE Sage Group
39.7x14.9%UK£10.6b
BYIT Bytes Technology Group
20.8x6.7%UK£1.1b
ALFA Alfa Financial Software Holdings
31.3x6.3%UK£692.1m
CER Cerillion
39.5x8.7%UK£555.3m
5ZMD Zoom Video Communications
24.9x2.7%€21.8b

Price-To-Earnings vs Peers: 5ZMD is good value based on its Price-To-Earnings Ratio (24.9x) compared to the peer average (31.2x).

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
3.1xn/aUS$5.54m
No more companies available in this PE range
No. of Companies5PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 5ZMD is good value based on its Price-To-Earnings Ratio (24.9x) compared to the UK Software industry average (32.8x).

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 Ratio24.9x
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?

Analyst Forecast: Insufficient data to show price forecast.

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