Zoom Communications Inc.

BVL:ZM Stock Report

Market Cap: US$25.3b

Zoom Communications Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: ZM ($77.7) is trading below our estimate of fair value ($93.17)

Significantly Below Fair Value: ZM is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

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

Price to Earnings Ratio vs Peers

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

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

Price-To-Earnings vs Peers: ZM 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 ZM's PE Ratio compare vs other companies in the Global Software Industry?

35 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ZM 26.9xIndustry Avg. 31.7xNo. of Companies80PE020406080100+
35 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ZM is good value based on its Price-To-Earnings Ratio (26.9x) compared to the Global Software industry average (31.7x).

Price to Earnings Ratio vs Fair Ratio

What is ZM'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.

ZM 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 ZM'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 ZM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$77.70
US$90.67
+16.7%
9.8%US$115.00US$70.00n/a27
Nov ’25US$68.16
US$76.74
+12.6%
12.1%US$95.00US$60.00n/a26
Oct ’25US$58.13
US$76.00
+30.7%
12.4%US$95.00US$60.00n/a26
Sep ’25US$58.13
US$75.68
+30.2%
12.2%US$95.00US$60.00n/a26
Aug ’25US$58.13
US$75.87
+30.5%
13.0%US$95.00US$55.00n/a26
Jul ’25US$58.13
US$76.29
+31.2%
12.6%US$95.00US$55.00n/a26
Jun ’25US$62.00
US$76.64
+23.6%
11.9%US$95.00US$58.00n/a26
May ’25US$60.20
US$78.44
+30.3%
11.8%US$95.00US$55.00n/a27
Apr ’25US$66.31
US$78.66
+18.6%
11.9%US$95.00US$55.00n/a26
Mar ’25US$60.70
US$79.25
+30.6%
11.9%US$95.00US$55.00n/a25
Feb ’25US$71.69
US$80.29
+12.0%
13.7%US$105.00US$60.00n/a25
Jan ’25US$71.69
US$80.65
+12.5%
13.0%US$105.00US$67.00n/a25
Dec ’24US$66.04
US$80.39
+21.7%
13.1%US$105.00US$67.00n/a25
Nov ’24US$72.74
US$82.71
+13.7%
12.1%US$105.00US$66.00US$68.1625
Oct ’24US$72.74
US$82.91
+14.0%
11.8%US$105.00US$66.00US$58.1325
Sep ’24US$72.74
US$82.75
+13.8%
12.2%US$105.00US$66.00US$58.1324
Aug ’24US$72.74
US$83.25
+14.4%
12.8%US$105.00US$65.00US$58.1324
Jul ’24US$72.74
US$83.29
+14.5%
12.7%US$105.00US$65.00US$58.1324
Jun ’24US$72.74
US$83.86
+15.3%
12.2%US$105.00US$65.00US$62.0025
May ’24US$72.74
US$85.02
+16.9%
10.9%US$105.00US$68.00US$60.2026
Apr ’24US$72.74
US$85.02
+16.9%
10.9%US$105.00US$68.00US$66.3126
Mar ’24US$72.74
US$86.10
+18.4%
10.8%US$105.00US$68.00US$60.7025
Feb ’24US$66.25
US$85.05
+28.4%
11.1%US$105.00US$67.00US$71.6926
Jan ’24US$66.25
US$86.98
+31.3%
12.2%US$110.00US$67.00US$71.6926
Dec ’23US$75.73
US$87.54
+15.6%
12.0%US$110.00US$67.00US$66.0425
Nov ’23US$75.73
US$101.04
+33.4%
16.9%US$130.00US$70.00US$72.7425

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

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