Stock AnalizZoom Communications, Inc. ZM
Computer Software: Programming Data Processing · IPO 2019 · data as of November 13, 2026
Zoom Communications, Inc. (ZM) is a technology company listed in the US with a market value of about $29.1B. In the twelve months to July 31, 2026 it had revenue of $5.0B and net income of $3.3B, a net margin of 65.2%.
Its overall Stock Analiz score is 3.4 out of 5 (good). The strongest part is financial health (5/5); the weakest is shareholder returns (1/5).
Key numbers: a P/E of 9.2, a price to free cash flow of 15.1, 5-year revenue growth of 13% a year, a 5-year average ROIC of 8%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 32% below the current price.
Score: 3.4 / 5
Checks passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- PEG below 1.5
- Profit margin improving
- 3-year free cash flow growth above 10% a year
- Strong R&D investment or growth above 20%
- 5-year EPS growth above 10% a year
Checks not passed
- Price below intrinsic value (DCF, moderate assumptions)
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- 5-year average ROIC above 12%
- Pays a dividend
- Share count down over 3 years (buybacks)
- Dividend 3 years in a row
- Stock-based pay below 5% of revenue
Valuation
Growth and quality
Financials, last 9 years
| Fiscal year | TTM | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $5.0B | $4.9B | $4.7B | $4.5B | $4.4B | $4.1B | $2.7B | $623M | $331M | $151M |
| Net income | $3.3B | $1.9B | $1.0B | $637M | $104M | $1.4B | $672M | $25M | $8M | -$4M |
| Free cash flow | $1.9B | $1.9B | $1.8B | $1.5B | $1.2B | $1.5B | $1.4B | $114M | $23M | $10M |
| EPS (diluted) | $10.79 | $6.18 | $3.21 | $2.07 | $0.34 | $4.50 | $2.25 | $0.09 | $0.00 | $-0.11 |
| Net margin | 65.2% | 39.0% | 21.6% | 14.1% | 2.4% | 33.6% | 25.4% | 4.1% | 2.3% | -2.5% |
| ROIC | — | 8.9% | 6.9% | 5.0% | 3.1% | 14.3% | 16.5% | 1.3% | 75.5% | — |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 26 analysts is $118.58, 19% above the current price; targets range from $79.00 to $135.00; the consensus rating is “Buy”; expected EPS is $6.14 for the fiscal year ending January 31, 2027.
Frequently asked questions
What is Zoom Communications’s P/E ratio?
About 9.2, based on the last twelve months of diluted earnings per share (forward P/E about 17.8).
Is Zoom Communications stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 32% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Zoom Communications pay a dividend?
Not currently.
Is Zoom Communications a good stock to buy?
We do not give buy or sell advice. Zoom Communications scores 3.4 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
Similar companies
Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.