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ZM logo
Zoom Communications Inc.
ZM
79.28 (0.00%) 0.00
24.30(B)
Information Technology
Software
Zoom Communications Inc. provides unified communications platform in the Americas the Asia Pacific Europe the Middle East and Africa. The company offers Zoom Meetings that offers HD video voice chat and content sharing through mobile devices desktops laptops telephones and conference room systems; Zoom Phone an enterprise cloud phone system; and Zoom Chat enables users to share messages images audio files and content in desktop laptop tablet and mobile devices. It also provides Zoom Rooms a software-based conference room system; Zoom Conference Room Connector a gateway for SIP/H.323 endpoints to join Zoom meetings; Zoom Events which enables users to manage and host internal and external virtual events; OnZoom a prosumer-focused virtual event platform and marketplace for Zoom users to create host and monetize online events; and Zoom Webinars to provide video presentations to large audiences from many devices. In addition the company offers Zoom Developer Platform that enables developers platform integrators service providers and customers to build apps and integrations using Zoom’s video-based communications solutions as well as integrate Zoom’s technology into their products and services; Zoom App Marketplace which helps developers to publish their apps as well as third-party integrations of Zoom; and Zoom Contact Center an omnichannel contact center solution. It serves individuals; and education entertainment/media enterprise infrastructure finance government healthcare manufacturing non-profit/not for profit and social impact retail/consumer products and software/Internet industries. The company was formerly known as Zoom Video Communications Inc. and changed its name to Zoom Communications Inc. in November 2024. The company was incorporated in 2011 and is headquartered in San Jose California.
Holdings:
Shares:
Cost basis:

Zoom Communications Inc. (ZM) price target and intrinsic value estimate

ZM's fair price estimate is $98.7

This valuation is based on a fair P/E of 19.1 and EPS estimates of $5.18

The median analyst price target for ZM is $90.0.

Analyst price targets range from $75.0 to $115.0

Is ZM overvalued or undervalued?

ZM is currently trading at $79.28

ZM is undervalued by 20% using the pevaluation method.

ZM is undervalued by 12% compared to median analyst price targets.

Do you agree with this valuation?

Valuation

PEvaluation

Low $74.0
Median $98.7
High $123.3
Fair P/E
Margin of safety

Analyst valuation

Low $75.0
Median $90.0
High $115.0
Strong Buy2
Buy11
Hold19
Sell0
Strong Sell1

Discounted cash-flow

TTM FCFFCF est.Growth FCFTerminal FCF
10%
5%
5y
10%
Shares outstan...ROICRevenue growthDebt/FCFAssets/Liabili...
Economic moat: Medium
None/narrowMediumWideVery wide

Overview

Market data

Market cap:$24.30(B)
Enterprise value:$16.66(B)
Total Equity:$8.68(B)
Shares outstanding:306.49(M)
Div. yield:0.00%
P/S:5.27
P/E:25.91
P/FCF:14.08
P/B:2.80
EPS:$3.1
FCF per share:$5.6
Dividend per share:$0.0

Income (TTM)

RevenueGrossNet
Revenue$4.63(B)
Gross profit$3.51(B)
EBITDA$890.08(M)
Net income$941.21(M)
Gross margin75.8%
Net margin20.3%

Balance sheet

Cash & ST inv.Other ST assetsLong term assetsCurrent liabilitiesLong term debtOther LT liabilitiesEquity
Total assets$10.68(B)
Total liabilities$2.00(B)
Cash & Short-term inv.$7.70(B)
Long-term debt$0
Debt issued$0
Debt repaid$0

Cash flow (TTM)

CFOCFICFF
FCF$1.73(B)
CapEx$-146.77(M)
Dividends paid$0
Stock issued$63.65(M)
Stock repurchased$-738.52(M)
Stock-based comp.$962.74(M)

Future Growth

Revenue

CAGR: 4.0%
FY+1$4.66(B)
FY+2$4.81(B)
FY+3$4.98(B)
FY+4$5.21(B)
FY+5$5.45(B)

Net Income

CAGR: 1.0%
FY+1$1.72(B)
FY+2$1.70(B)
FY+3$1.74(B)
FY+4$1.77(B)
FY+5$1.79(B)

EPS

CAGR: 0.7%
FY+1$5.45
FY+2$5.36
FY+3$5.44
FY+4$5.47
FY+5$5.61

FCF per share

CAGR: 4.6%
FY+1$6.40
FY+2$6.54
FY+3$6.78
FY+4$7.50
FY+5$7.66

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Historical Financials

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