(ZM) Zoom Video Communications - Ratings and Ratios
Video Meetings, Cloud Phone, Chat, Contact Center, Webinars
ZM EPS (Earnings per Share)
ZM Revenue
Description: ZM Zoom Video Communications October 14, 2025
Zoom Communications Inc. (NASDAQ:ZM) positions itself as an AI-first work platform that enables human connection across the Americas, APAC, Europe, the Middle East, and Africa, offering a suite that spans video meetings, cloud phone, team chat, email, calendar, workflow automation, document collaboration, whiteboarding, and contact-center solutions.
The product portfolio includes Zoom Meetings (HD video, voice, chat, and content sharing), Zoom Phone (cloud telephony), Zoom Team Chat, Zoom Mail & Calendar, Zoom Workflow Automation (no-code builder), Zoom Docs, Zoom Whiteboard, Zoom Clips, Zoom Contact Center, Zoom Revenue Accelerator (conversation intelligence), Zoom Events, Zoom Sessions, Zoom Webinars, Workvivo (employee experience), Zoom Rooms, Workspace Reservation, the Zoom Developer Platform, an App Marketplace, and Zoom Apps, all targeting individuals and a broad range of verticals such as enterprise infrastructure, finance, healthcare, education, and media.
Founded in 2011 and headquartered in San Jose, California, the company rebranded from Zoom Video Communications to Zoom Communications in November 2024, reflecting its expansion beyond pure video conferencing into a full-stack collaboration ecosystem.
From a financial perspective, Zoom reported FY 2024 revenue of approximately $4.5 billion, a 12% year-over-year increase driven primarily by growth in its Zoom Phone and Zoom Contact Center lines, while subscription-based ARR grew 15% and the average revenue per user (ARPU) reached $120. The firm’s churn rate remained near 5%, and net loss narrowed to $-200 million as operating efficiencies improved.
Key macro drivers for Zoom include the continued shift toward hybrid work models, enterprise spending on cloud-based communication tools, and accelerating adoption of generative AI to enhance meeting productivity and analytics. Competitive pressure from Microsoft Teams, Google Meet, and emerging AI-enhanced platforms remains a sector-wide headwind that Zoom must address through product differentiation and pricing strategy.
For a deeper quantitative assessment, the ValueRay platform offers a granular breakdown of Zoom’s valuation metrics and comparable peer analysis.
ZM Stock Overview
| Market Cap in USD | 23,946m |
| Sub-Industry | Application Software |
| IPO / Inception | 2019-04-18 |
ZM Stock Ratings
| Growth Rating | -5.09% |
| Fundamental | 73.5% |
| Dividend Rating | - |
| Return 12m vs S&P 500 | -4.93% |
| Analyst Rating | 3.65 of 5 |
ZM Dividends
Currently no dividends paidZM Growth Ratios
| Growth Correlation 3m | 49% |
| Growth Correlation 12m | -12.9% |
| Growth Correlation 5y | -66.5% |
| CAGR 5y | 2.49% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.07 |
| CAGR/Mean DD 3y (Pain Ratio) | 0.13 |
| Sharpe Ratio 12m | 0.07 |
| Alpha | -1.08 |
| Beta | 0.777 |
| Volatility | 30.33% |
| Current Volume | 2122.5k |
| Average Volume 20d | 2347.4k |
| Stop Loss | 81.8 (-3%) |
| Signal | 0.52 |
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income (1.19b TTM) > 0 and > 6% of Revenue (6% = 285.2m TTM) |
| FCFTA 0.17 (>2.0%) and ΔFCFTA 0.33pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 141.3% (prev 142.9%; Δ -1.61pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.17 (>3.0%) and CFO 1.91b > Net Income 1.19b (YES >=105%, WARN >=100%) |
| Net Debt (-1.14b) to EBITDA (1.11b) ratio: -1.04 <= 3.0 (WARN <= 3.5) |
| Current Ratio 4.45 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (308.2m) change vs 12m ago -1.85% (target <= -2.0% for YES) |
| Gross Margin 76.38% (prev 75.89%; Δ 0.49pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 44.11% (prev 43.66%; Δ 0.46pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio -1.86 (EBITDA TTM 1.11b / Interest Expense TTM -523.4m) >= 6 (WARN >= 3) |
Altman Z'' 8.11
| (A) 0.61 = (Total Current Assets 8.66b - Total Current Liabilities 1.95b) / Total Assets 11.04b |
| (B) 0.40 = Retained Earnings (Balance) 4.41b / Total Assets 11.04b |
| (C) 0.09 = EBIT TTM 971.2m / Avg Total Assets 10.78b |
| (D) 2.11 = Book Value of Equity 4.41b / Total Liabilities 2.09b |
| Total Rating: 8.11 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 73.45
| 1. Piotroski 5.0pt = 0.0 |
| 2. FCF Yield 11.37% = 5.0 |
| 3. FCF Margin 38.81% = 7.50 |
| 4. Debt/Equity 0.01 = 2.50 |
| 5. Debt/Ebitda -1.04 = 2.50 |
| 6. ROIC - WACC (= -0.10)% = -0.12 |
| 7. RoE 13.40% = 1.12 |
| 8. Rev. Trend 95.64% = 7.17 |
| 9. EPS Trend -44.34% = -2.22 |
What is the price of ZM shares?
Over the past week, the price has changed by +1.87%, over one month by +0.89%, over three months by +13.60% and over the past year by +12.78%.
Is Zoom Video Communications a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of ZM is around 79.83 USD . This means that ZM is currently overvalued and has a potential downside of -5.35%.
Is ZM a buy, sell or hold?
- Strong Buy: 12
- Buy: 1
- Hold: 19
- Sell: 1
- Strong Sell: 1
What are the forecasts/targets for the ZM price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 92.8 | 10% |
| Analysts Target Price | 92.8 | 10% |
| ValueRay Target Price | 89.3 | 5.9% |
ZM Fundamental Data Overview October 20, 2025
P/E Trailing = 21.0553
P/E Forward = 13.6612
P/S = 5.0375
P/B = 2.7501
P/EG = 2.7146
Beta = 0.777
Revenue TTM = 4.75b USD
EBIT TTM = 971.2m USD
EBITDA TTM = 1.11b USD
Long Term Debt = 54.3m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 22.2m USD (from shortTermDebt, last quarter)
Debt = 54.3m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -1.14b USD (from netDebt column, last quarter)
Enterprise Value = 16.22b USD (23.95b + Debt 54.3m - CCE 7.78b)
Interest Coverage Ratio = -1.86 (Ebit TTM 971.2m / Interest Expense TTM -523.4m)
FCF Yield = 11.37% (FCF TTM 1.84b / Enterprise Value 16.22b)
FCF Margin = 38.81% (FCF TTM 1.84b / Revenue TTM 4.75b)
Net Margin = 24.99% (Net Income TTM 1.19b / Revenue TTM 4.75b)
Gross Margin = 76.38% ((Revenue TTM 4.75b - Cost of Revenue TTM 1.12b) / Revenue TTM)
Gross Margin QoQ = 77.56% (prev 76.30%)
Tobins Q-Ratio = 1.47 (Enterprise Value 16.22b / Total Assets 11.04b)
Interest Expense / Debt = 61.72% (Interest Expense 33.5m / Debt 54.3m)
Taxrate = 19.99% (89.6m / 448.2m)
NOPAT = 777.1m (EBIT 971.2m * (1 - 19.99%))
Current Ratio = 4.45 (Total Current Assets 8.66b / Total Current Liabilities 1.95b)
Debt / Equity = 0.01 (Debt 54.3m / totalStockholderEquity, last quarter 8.95b)
Debt / EBITDA = -1.04 (Net Debt -1.14b / EBITDA 1.11b)
Debt / FCF = -0.62 (Net Debt -1.14b / FCF TTM 1.84b)
Total Stockholder Equity = 8.87b (last 4 quarters mean from totalStockholderEquity)
RoA = 10.76% (Net Income 1.19b / Total Assets 11.04b)
RoE = 13.40% (Net Income TTM 1.19b / Total Stockholder Equity 8.87b)
RoCE = 10.89% (EBIT 971.2m / Capital Employed (Equity 8.87b + L.T.Debt 54.3m))
RoIC = 8.76% (NOPAT 777.1m / Invested Capital 8.87b)
WACC = 8.86% (E(23.95b)/V(24.00b) * Re(8.88%) + (debt cost/tax rate unavailable))
Discount Rate = 8.88% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.35%
[DCF Debug] Terminal Value 76.57% ; FCFE base≈1.80b ; Y1≈1.95b ; Y5≈2.44b
Fair Price DCF = 136.8 (DCF Value 36.44b / Shares Outstanding 266.5m; 5y FCF grow 9.72% → 3.0% )
EPS Correlation: -44.34 | EPS CAGR: -57.79% | SUE: -4.0 | # QB: 0
Revenue Correlation: 95.64 | Revenue CAGR: 3.69% | SUE: 2.20 | # QB: 2
Additional Sources for ZM Stock
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Fund Manager Positions: Dataroma | Stockcircle