Zoom Communications Inc.

LSE:0A1O Stock Report

Market Cap: US$26.2b

Zoom Communications Valuation

Is 0A1O undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 0A1O when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0A1O ($85.37) is trading below our estimate of fair value ($136.33)

Significantly Below Fair Value: 0A1O is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0A1O?

Key metric: As 0A1O is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0A1O. This is calculated by dividing 0A1O's market cap by their current earnings.
What is 0A1O's PE Ratio?
PE Ratio27.8x
EarningsUS$941.21m
Market CapUS$26.16b

Price to Earnings Ratio vs Peers

How does 0A1O's PE Ratio compare to its peers?

The above table shows the PE ratio for 0A1O vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average51.7x
SGE Sage Group
40.1x12.5%UK£13.0b
BYIT Bytes Technology Group
20.9x6.7%UK£1.1b
GBG GB Group
116.1x36.6%UK£945.4m
ALFA Alfa Financial Software Holdings
29.8x6.3%UK£659.6m
0A1O Zoom Communications
27.8x2.7%US$26.2b

Price-To-Earnings vs Peers: 0A1O is good value based on its Price-To-Earnings Ratio (27.8x) compared to the peer average (51.7x).

Price to Earnings Ratio vs Industry

How does 0A1O's PE Ratio compare vs other companies in the GB Software Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
SORT Sorted Group Holdings
3xn/aUS$5.52m
No more companies available in this PE range
0A1O 27.8xIndustry Avg. 34.8xNo. of Companies4PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0A1O is good value based on its Price-To-Earnings Ratio (27.8x) compared to the UK Software industry average (34.8x).

Price to Earnings Ratio vs Fair Ratio

What is 0A1O'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.

0A1O PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.8x
Fair PE Ratio48.6x

Price-To-Earnings vs Fair Ratio: 0A1O is good value based on its Price-To-Earnings Ratio (27.8x) compared to the estimated Fair Price-To-Earnings Ratio (48.6x).

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 0A1O forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$85.37
US$90.67
+6.2%
9.8%US$115.00US$70.00n/a27
Nov ’25US$75.54
US$76.74
+1.6%
12.1%US$95.00US$60.00n/a26
Oct ’25US$68.73
US$76.00
+10.6%
12.4%US$95.00US$60.00n/a26
Sep ’25US$69.00
US$75.68
+9.7%
12.2%US$95.00US$60.00n/a26
Aug ’25US$59.20
US$75.87
+28.2%
13.0%US$95.00US$55.00n/a26
Jul ’25US$59.33
US$76.29
+28.6%
12.6%US$95.00US$55.00n/a26
Jun ’25US$60.32
US$76.64
+27.1%
11.9%US$95.00US$58.00n/a26
May ’25US$61.43
US$78.44
+27.7%
11.8%US$95.00US$55.00n/a27
Apr ’25US$65.81
US$78.66
+19.5%
11.9%US$95.00US$55.00n/a26
Mar ’25US$71.08
US$79.25
+11.5%
11.9%US$95.00US$55.00n/a25
Feb ’25US$64.68
US$80.29
+24.1%
13.7%US$105.00US$60.00n/a25
Jan ’25US$72.15
US$80.65
+11.8%
13.0%US$105.00US$67.00n/a25
Dec ’24US$70.30
US$80.39
+14.3%
13.1%US$105.00US$67.00n/a25
Nov ’24US$59.82
US$82.71
+38.3%
12.1%US$105.00US$66.00US$75.5425
Oct ’24US$69.99
US$82.91
+18.5%
11.8%US$105.00US$66.00US$68.7325
Sep ’24US$71.88
US$82.75
+15.1%
12.2%US$105.00US$66.00US$69.0024
Aug ’24US$72.53
US$83.25
+14.8%
12.8%US$105.00US$65.00US$59.2024
Jul ’24US$68.12
US$83.29
+22.3%
12.7%US$105.00US$65.00US$59.3324
Jun ’24US$68.35
US$83.86
+22.7%
12.2%US$105.00US$65.00US$60.3225
May ’24US$61.00
US$85.02
+39.4%
10.9%US$105.00US$68.00US$61.4326
Apr ’24US$74.20
US$85.02
+14.6%
10.9%US$105.00US$68.00US$65.8126
Mar ’24US$69.82
US$86.10
+23.3%
10.8%US$105.00US$68.00US$71.0825
Feb ’24US$75.03
US$85.05
+13.4%
11.1%US$105.00US$67.00US$64.6826
Jan ’24US$66.86
US$86.98
+30.1%
12.2%US$110.00US$67.00US$72.1526
Dec ’23US$77.03
US$87.54
+13.6%
12.0%US$110.00US$67.00US$70.3025
Nov ’23US$83.50
US$101.04
+21.0%
16.9%US$130.00US$70.00US$59.8225

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

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