Zoom Communications (ZM) Fair Value & DCF

ZM$97.47+6.56 +7.21%
Software - ApplicationLarge CapValue StockGrowth StockHigh Quality
Compare
Market cap$28.44BEnterprise value$25.93BRevenue (TTM)$4.99BMarket positionTop 25%

Score

76
Bullish
Value
80
Quality
83
Growth
66

ZM fair value $158.30. Price $97.47. Price is 38% below fair value.

Worked example

Cash-flow value. Starting free cash flow is $6.60 a share. Year 1 is the first earnings forecast, so it has no growth rate of its own. The forecast then reaches 3.87%, and that pace fades in a straight line to 3% terminal growth by year 10. The discount rate is 9.90% (beta 1.02). It is beta-adjusted and capped at 12%. The cash-flow value is $129.94 a share.

Earnings value. Next-twelve-months earnings per share of $6.22 times 30.00 is $186.67. The peer group is Software - Application, 25 companies worth at least $10 billion. Peer median 33.4. Own 10-year median 31.9. The multiple used is the average of the two, kept between 8 and 30, which is 30.00.

Fair value is the average of the two, $158.30. The price is $97.47, which is 38.4% below fair value.

Zoom Communications (ZM) Fair Value & DCF

ZM price $97.47 +6.56 +7.21%

Ticker
ZM
Price
$97.47
Change
+6.56 +7.21%
Market cap
$28.44B
P/E
8.15
Forward P/E
14.61
Dividend yield
0.00%
Beta
1.02
Sector
Technology
Industry
Software - Application
Stocklytics score
76
Value
80
Quality
83
Growth
66

Stocklytics score rationale: value 80, quality 83, growth 66.

AI Score 75. Zoom Communications, Inc. has a strong gross profit margin of approximately 77.3% and a low debt-to-assets ratio of 0.004, indicating solid financial health

Summary

Zoom Communications, Inc. operates in the Technology sector and Software - Application industry. Its overall score is 74.

Valuation

The company has a value score of 76, with a P/E ratio of 8.7 and a price-to-book ratio of 2.5.

Quality

Quality is a relative strength, with a quality score of 82. Net margin is 65.2%.

Growth

The growth score is 64, indicating growth is weaker than the company’s valuation and quality scores.

Risks

The company has no dividend yield, at 0.0. The available facts do not provide detail on operating, competitive, or financial risks.

Fair value

ZM fair value $158.30. Price $97.47. Price is 38% below fair value.

Below fair value, around its usual discount.

Fair value is an estimate of what one share is worth if future cash flows arrive as modeled. It is not a forecast of the share price.

Fair value blends a 10-year DCF and an earnings multiple: the average of the DCF value and an earnings value from next-twelve-months EPS times 30.0, a blend of the Software - Application median (33.4) and the stock's own 10-year median (31.9). How we calculate it →

Compare ZM

Earnings

DateEPS actualEPS estimateRevenueRevenue estimate
2026-11-23—1.49—1.28B
2026-08-251.551.481.28B1.27B
2026-05-211.551.421.24B1.22B
2026-02-251.441.491.25B1.23B
2025-11-241.521.441.23B1.21B
2025-08-211.531.381.22B1.20B
2025-05-211.431.311.17B1.17B
2025-02-241.411.301.18B1.18B
2024-11-251.381.311.18B1.16B
2024-08-211.391.211.16B1.15B
2024-05-201.351.191.14B1.13B
2024-02-261.421.151.15B1.13B
2023-11-201.291.081.14B1.13B
2023-08-211.341.051.14B1.11B
2023-05-221.160.991.11B1.08B
2023-02-271.220.791.12B1.10B
2022-11-211.070.841.10B1.09B
2022-08-221.050.921.10B1.12B
2022-05-231.030.881.07B1.07B
2022-02-281.291.061.07B1.05B
2021-11-221.111.091.05B1.05B
2021-08-301.361.161.02B822.18M
2021-06-011.320.97956.24M904.04M
2021-03-011.220.78882.49M663.54M
2020-11-300.990.75777.20M541.99M
2020-08-310.920.45663.52M554.25M
2020-06-020.200.10328.17M270.74M
2020-03-040.150.07188.25M149.76M
2019-12-050.090.03166.59M55.53M
2019-09-050.080.01145.83M18.23M
2019-06-060.030.01121.99M121.99M
2019-04-17-0.00—90.12M—
2019-01-310.02—105.80M—
2018-07-310.01—74.53M—
2018-04-30-0.00—60.07M—

Dividends

Yield 0.00%. Payout ratio 0.00%. Frequency —.

Safety score 37/100 · Watch. Payout ratio is 0% of earnings. Free-cash-flow coverage is not available, so this part stays neutral. No dividend history was found. There is no dividend yield.

Ex-dateDividendRecordPaymentFrequency
No data yet.

Insider trades

DateInsiderActionSharesPriceValue
2026-11-05Subotovsky SantiagoSell1.54K$88.98136.95K
2026-11-05Subotovsky SantiagoSell574$89.9151.61K
2026-11-05Subotovsky SantiagoSell524$90.8447.60K
2026-11-04Yuan Eric S.Sell12.10K——
2026-11-04Yuan Eric S.Buy12.10K——
2026-11-04Yuan Eric S.Sell6.17K$92.14568.96K
2026-11-04Yuan Eric S.Sell3.62K$93.03336.97K
2026-11-04Yuan Eric S.Sell1.20K$94.20112.57K
2026-11-04Yuan Eric S.Sell1.05K$95.2699.74K
2026-11-04Yuan Eric S.Sell61$95.715.84K
2026-11-03Yuan Eric S.Sell12.10K——
2026-11-03Yuan Eric S.Sell1.41K$89.85126.23K
2026-11-03Yuan Eric S.Sell1.02K$90.9693.05K
2026-11-03Yuan Eric S.Sell9.65K$91.80885.89K
2026-11-03Yuan Eric S.Sell22$92.362.03K
2026-10-28Subotovsky SantiagoSell1.44K$100.14144.40K
2026-10-22Subotovsky SantiagoSell20$100.432.01K
2026-10-21McMaster Herbert RaymondSell1.50K$101.25151.88K
2026-10-21Subotovsky SantiagoSell3.44K$100.49345.29K
2026-10-21Subotovsky SantiagoSell376$101.1938.05K
2026-10-21Chang MichelleSell10.16K$101.931.04M
2026-10-15Subotovsky SantiagoSell35$93.653.28K
2026-10-15Subotovsky SantiagoSell64$94.606.05K
2026-10-15Subotovsky SantiagoSell84$95.448.02K
2026-10-15Subotovsky SantiagoSell280$96.6127.05K
2026-10-15Subotovsky SantiagoSell88$97.408.57K
2026-10-15Subotovsky SantiagoSell166$98.2616.31K
2026-10-13McGarry Kimberly JSell8.69K$97.56847.96K
2026-10-12Chang MichelleSell2.74K$98.67270.55K
2026-10-12Chang MichelleSell5.75K$99.84573.79K
2026-10-12Sankarlingam VelchamySell2.35K$98.63231.39K
2026-10-12Sankarlingam VelchamySell5.30K$99.54527.49K
2026-10-09McGarry Kimberly JSell3.12K——
2026-10-09McGarry Kimberly JBuy3.12K——
2026-10-09McGarry Kimberly JSell1.38K$94.67130.93K
2026-10-09Chang MichelleSell22.22K——
2026-10-09Chang MichelleBuy22.22K——
2026-10-09Chang MichelleSell8.74K$94.67827.70K
2026-10-09Sankarlingam VelchamyBuy20.75K——
2026-10-09Sankarlingam VelchamySell10.56K$94.67999.62K
2026-10-09Sankarlingam VelchamySell20.75K——
2026-10-09Yuan Eric S.Sell46.82K$94.674.43M
2026-10-09Yuan Eric S.Buy46.82K$94.674.43M
2026-10-09Yuan Eric S.Sell23.82K$85.682.04M
2026-10-08McMaster Herbert RaymondSell3.00K$94.71284.12K
2026-10-06Yuan Eric S.Sell12.10K——
2026-10-06Yuan Eric S.Buy12.10K——
2026-10-06Yuan Eric S.Sell11.90K$94.071.12M
2026-10-06Yuan Eric S.Sell204$94.5919.30K
2026-10-05Yuan Eric S.Sell12.10K——
2026-10-05Yuan Eric S.Sell11.51K$93.721.08M
2026-10-05Yuan Eric S.Sell588$94.2055.39K
2026-10-05Subotovsky SantiagoSell2.52K$93.72236.64K
2026-10-05Subotovsky SantiagoSell112$94.2410.55K
2026-09-10Sankarlingam VelchamySell2.38K$95.76228.29K
2026-09-10Sankarlingam VelchamySell206$96.3719.85K
2026-09-09Sankarlingam VelchamyBuy7.03K——
2026-09-09Sankarlingam VelchamySell3.58K$96.44345.16K
2026-09-09Sankarlingam VelchamySell2.81K——
2026-09-08Subotovsky SantiagoSell1.79K$96.48172.89K
2026-09-08Subotovsky SantiagoSell845$96.9581.92K
2026-09-02Yuan Eric S.Sell12.10K——
2026-09-02Yuan Eric S.Buy12.10K——
2026-09-02Yuan Eric S.Sell10.33K$95.70988.50K
2026-09-02Yuan Eric S.Sell1.77K$96.53170.96K
2026-09-01Yuan Eric S.Sell12.10K——
2026-09-01Yuan Eric S.Sell10.73K$95.271.02M
2026-09-01Yuan Eric S.Sell1.37K$95.89131.65K
2026-08-31Epstein JeffBuy2.23K——
2026-08-31Epstein JeffOther0——
2026-08-06Yuan Eric S.Sell12.10K——
2026-08-06Yuan Eric S.Buy12.10K——
2026-08-06Yuan Eric S.Sell355$98.8635.10K
2026-08-06Yuan Eric S.Sell8.79K$100.03878.87K
2026-08-06Yuan Eric S.Sell2.96K$100.85298.41K
2026-08-05Yuan Eric S.Sell12.10K——
2026-08-05Yuan Eric S.Sell7.11K$99.76709.37K
2026-08-05Yuan Eric S.Sell4.17K$100.59419.16K
2026-08-05Yuan Eric S.Sell754$101.5876.59K
2026-08-05Yuan Eric S.Sell68$102.256.95K
2026-08-04Subotovsky SantiagoSell40$97.233.89K
2026-08-04Subotovsky SantiagoSell72$98.717.11K
2026-08-04Subotovsky SantiagoSell256$99.7025.52K
2026-08-04Subotovsky SantiagoSell2.66K$100.84268.24K
2026-08-04Subotovsky SantiagoSell4.86K$101.76494.85K
2026-08-04Subotovsky SantiagoSell20$102.192.04K
2026-07-15Sankarlingam VelchamySell7.64K$91.98703.09K
2026-07-14McMaster Herbert RaymondSell5$88.83444
2026-07-14Yuan Eric S.Sell12.10K——
2026-07-14Yuan Eric S.Buy12.10K——
2026-07-14Yuan Eric S.Sell1.21K$89.49107.93K
2026-07-14Yuan Eric S.Sell7.29K$90.53660.20K
2026-07-14Yuan Eric S.Sell3.60K$91.30328.77K
2026-07-13Yuan Eric S.Sell12.10K——
2026-07-13Yuan Eric S.Buy12.10K$91.681.11M
2026-07-13Yuan Eric S.Sell11.08K$90.621.00M
2026-07-13Yuan Eric S.Sell19.05K$91.611.75M
2026-07-13Yuan Eric S.Sell15.59K$92.531.44M
2026-07-09Sankarlingam VelchamyBuy20.75K——
2026-07-09Sankarlingam VelchamySell10.56K$87.40922.86K

Institutional holders

Latest filed quarter: Q2 2026.

Institutions holding: 945, holders +62 vs prior quarter. Ownership 69.25%.

HolderSharesChangeChange %Value
BLACKROCK, INC.18.02M239.69K+1.35%1.56B
VANGUARD PORTFOLIO MANAGEMENT LLC13.11M-293.93K-2.19%1.13B
VANGUARD CAPITAL MANAGEMENT LLC11.54M51.37K+0.45%996.21M
JPMORGAN CHASE & CO8.56M-514.09K-5.66%737.46M
NORGES BANK7.97M7.97MNew687.92M
STATE STREET CORP7.56M-266.14K-3.40%652.72M
FMR LLC7.20M-462.01K-6.03%621.28M
AQR CAPITAL MANAGEMENT LLC6.53M-1.83M-21.91%563.43M
GEODE CAPITAL MANAGEMENT, LLC6.15M883.55K+16.77%534.19M
ACADIAN ASSET MANAGEMENT LLC4.00M65.53K+1.66%345.50M
T. ROWE PRICE INVESTMENT MANAGEMENT, INC.3.75M-428.56K-10.25%323.91M
FIL LTD3.51M688.74K+24.41%302.95M
SUSQUEHANNA INTERNATIONAL GROUP, LLP3.05M1.58M+107.40%263.56M
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP2.86M263.35K+10.13%247.14M
RUBRIC CAPITAL MANAGEMENT LP2.77M1.77M+176.32%238.73M
D. E. SHAW & CO., INC.2.74M2.74MNew236.21M
VALUE ALIGNED RESEARCH ADVISORS, LLC2.60M1.50M+136.06%224.47M
QUBE RESEARCH & TECHNOLOGIES LTD2.52M2.52MNew217.53M
DIMENSIONAL FUND ADVISORS LP2.49M133.55K+5.68%214.53M
UBS AM, A DISTINCT BUSINESS UNIT OF UBS ASSET MANAGEMENT AMERICAS LLC2.41M-248.11K-9.34%207.83M
RENAISSANCE TECHNOLOGIES LLC2.38M-78.10K-3.18%205.48M
BANK OF AMERICA CORP /DE/2.30M536.79K+30.37%198.90M
GOLDMAN SACHS GROUP INC2.20M593.82K+37.08%189.48M
LEGAL & GENERAL GROUP PLC2.19M164.03K+8.11%188.78M
ALLIANZ ASSET MANAGEMENT GMBH2.14M150.16K+7.55%184.63M

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