A Look at Zoom (ZM) Valuation as Zoom Phone Surpasses 10 Million Seats Globally

Zoom Communications (ZM) has just marked a major milestone as its AI-powered Zoom Phone platform now serves over 10 million users worldwide after just a few years on the market. The company’s rapid adoption among global enterprises signals that more organizations are embracing unified communications to boost efficiency and streamline collaboration.

See our latest analysis for Zoom Communications.

Zoom’s announcement comes amid a year marked by strategic partnerships and continual product innovation, but the share price hasn’t reflected much excitement in recent months. While the latest 90-day share price return stands at 9.37% and the one-year total shareholder return is up 13.58%, investors remain cautious with the stock slightly down year to date. Momentum appears to be building but not yet breaking out decisively.

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With shares still trading at a notable discount to analyst price targets, the real question is whether Zoom is quietly offering investors a rare bargain or if the market has already factored future growth into the current price.

Most Popular Narrative: 13% Undervalued

With Zoom Communications closing at $80.28 and the most widely followed narrative estimating fair value at $92.30, the current market price sits well below what these projections suggest. This sets the stage for debate about whether the market is missing something in Zoom’s growth story or analysts are too optimistic.

Rapid product innovation in AI-driven automation, integration with third-party enterprise platforms, and workflow enhancements (such as custom AI Companions and agentless outbound dialers) strengthens Zoom's differentiated value proposition in critical business processes. This enables pricing power and supports future margin expansion as value-added services scale without linear cost increases.

Read the complete narrative.

Want to know how innovation is shaping Zoom’s projected valuation? The narrative factors in future growth, ambitious margin assumptions, and a premium profit multiple for years ahead. What numbers drive this bullish case? Explore the full narrative and see what’s behind the bold forecast.

Result: Fair Value of $92.30 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, heightened competition from larger, integrated platforms and slower monetization of AI features could pose challenges for Zoom in maintaining its valuation ambitions.

Find out about the key risks to this Zoom Communications narrative.

Build Your Own Zoom Communications Narrative

If you want to take a hands-on approach or believe a different perspective tells the real story, crafting your own narrative takes just a few minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Zoom Communications.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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