Zoom Video Communications, Inc.

LSE:0A1O Stock Report

Market Cap: US$21.1b

Zoom Video 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 ($68.12) is trading below our estimate of fair value ($143.08)

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?

Other financial metrics that can be useful for relative valuation.

0A1O key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3x
Enterprise Value/EBITDA16x
PEG Ratio-16.9x

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 Average31.7x
SGE Sage Group
37.4x15.1%UK£10.0b
BYIT Bytes Technology Group
26.1x9.0%UK£1.2b
ALFA Alfa Financial Software Holdings
27.2x6.1%UK£600.6m
CER Cerillion
36.1x9.8%UK£508.0m
0A1O Zoom Video Communications
24x-1.4%US$21.1b

Price-To-Earnings vs Peers: 0A1O is good value based on its Price-To-Earnings Ratio (24x) compared to the peer average (31.7x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.6%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 0A1O is good value based on its Price-To-Earnings Ratio (24x) compared to the UK Software industry average (31.6x).


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 Ratio24x
Fair PE Ratio45.3x

Price-To-Earnings vs Fair Ratio: 0A1O is good value based on its Price-To-Earnings Ratio (24x) compared to the estimated Fair Price-To-Earnings Ratio (45.3x).


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$68.12
US$76.00
+11.6%
12.4%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$66.00n/a25
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
Oct ’23US$75.05
US$104.54
+39.3%
16.8%US$130.00US$76.00US$69.9924

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


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