(ZM) Zoom Video Communications - Ratings and Ratios
Video Meetings, Cloud Phone, Chat, Contact Center, Webinars
Dividends
Currently no dividends paid| Risk via 10d forecast | |
|---|---|
| Volatility | 31.0% |
| Value at Risk 5%th | 48.5% |
| Relative Tail Risk | -4.89% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.17 |
| Alpha | -9.45 |
| CAGR/Max DD | 0.18 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.514 |
| Beta | 0.892 |
| Beta Downside | 0.882 |
| Drawdowns 3y | |
|---|---|
| Max DD | 34.66% |
| Mean DD | 16.60% |
| Median DD | 17.37% |
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.
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income (1.59b TTM) > 0 and > 6% of Revenue (6% = 288.4m TTM) |
| FCFTA 0.18 (>2.0%) and ΔFCFTA 1.42pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 140.6% (prev 144.3%; Δ -3.76pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.18 (>3.0%) and CFO 2.06b > Net Income 1.59b (YES >=105%, WARN >=100%) |
| Net Debt (-1.19b) to EBITDA (1.23b) ratio: -0.96 <= 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 (308.7m) change vs 12m ago -1.75% (target <= -2.0% for YES) |
| Gross Margin 76.89% (prev 75.83%; Δ 1.06pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 43.55% (prev 43.33%; Δ 0.22pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio -1.21 (EBITDA TTM 1.23b / Interest Expense TTM -910.2m) >= 6 (WARN >= 3) |
Altman Z'' 8.51
| (A) 0.59 = (Total Current Assets 8.71b - Total Current Liabilities 1.96b) / Total Assets 11.39b |
| (B) 0.44 = Retained Earnings (Balance) 5.03b / Total Assets 11.39b |
| (C) 0.10 = EBIT TTM 1.10b / Avg Total Assets 11.04b |
| (D) 2.39 = Book Value of Equity 5.04b / Total Liabilities 2.10b |
| Total Rating: 8.51 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 79.29
| 1. Piotroski 6.50pt |
| 2. FCF Yield 11.71% |
| 3. FCF Margin 41.64% |
| 4. Debt/Equity 0.00 |
| 5. Debt/Ebitda -0.96 |
| 6. ROIC - WACC (= 0.11)% |
| 7. RoE 17.67% |
| 8. Rev. Trend 97.74% |
| 9. EPS Trend 27.11% |
What is the price of ZM shares?
Over the past week, the price has changed by +1.91%, over one month by +3.28%, over three months by +4.58% and over the past year by +3.50%.
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 | 94.6 | 9.2% |
| Analysts Target Price | 94.6 | 9.2% |
| ValueRay Target Price | 84 | -3% |
ZM Fundamental Data Overview November 29, 2025
P/E Trailing = 16.4261
P/E Forward = 13.9276
P/S = 5.2019
P/B = 2.692
P/EG = 4.6441
Beta = 0.808
Revenue TTM = 4.81b USD
EBIT TTM = 1.10b USD
EBITDA TTM = 1.23b USD
Long Term Debt = 48.5m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 27.0m USD (from shortTermDebt, last fiscal year)
Debt = 28.1m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -1.19b USD (from netDebt column, last quarter)
Enterprise Value = 17.08b USD (25.00b + Debt 28.1m - CCE 7.94b)
Interest Coverage Ratio = -1.21 (Ebit TTM 1.10b / Interest Expense TTM -910.2m)
FCF Yield = 11.71% (FCF TTM 2.00b / Enterprise Value 17.08b)
FCF Margin = 41.64% (FCF TTM 2.00b / Revenue TTM 4.81b)
Net Margin = 33.17% (Net Income TTM 1.59b / Revenue TTM 4.81b)
Gross Margin = 76.89% ((Revenue TTM 4.81b - Cost of Revenue TTM 1.11b) / Revenue TTM)
Gross Margin QoQ = 77.90% (prev 77.56%)
Tobins Q-Ratio = 1.50 (Enterprise Value 17.08b / Total Assets 11.39b)
Interest Expense / Debt = 119.3% (Interest Expense 33.5m / Debt 28.1m)
Taxrate = 22.88% (181.8m / 794.7m)
NOPAT = 847.4m (EBIT 1.10b * (1 - 22.88%))
Current Ratio = 4.45 (Total Current Assets 8.71b / Total Current Liabilities 1.96b)
Debt / Equity = 0.00 (Debt 28.1m / totalStockholderEquity, last quarter 9.29b)
Debt / EBITDA = -0.96 (Net Debt -1.19b / EBITDA 1.23b)
Debt / FCF = -0.59 (Net Debt -1.19b / FCF TTM 2.00b)
Total Stockholder Equity = 9.02b (last 4 quarters mean from totalStockholderEquity)
RoA = 13.99% (Net Income 1.59b / Total Assets 11.39b)
RoE = 17.67% (Net Income TTM 1.59b / Total Stockholder Equity 9.02b)
RoCE = 12.12% (EBIT 1.10b / Capital Employed (Equity 9.02b + L.T.Debt 48.5m))
RoIC = 9.40% (NOPAT 847.4m / Invested Capital 9.02b)
WACC = 9.29% (E(25.00b)/V(25.03b) * Re(9.30%) + (debt cost/tax rate unavailable))
Discount Rate = 9.30% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.27%
[DCF Debug] Terminal Value 75.66% ; FCFE base≈1.89b ; Y1≈2.12b ; Y5≈2.83b
Fair Price DCF = 147.8 (DCF Value 39.24b / Shares Outstanding 265.6m; 5y FCF grow 14.12% → 3.0% )
EPS Correlation: 27.11 | EPS CAGR: 12.55% | SUE: 4.0 | # QB: 16
Revenue Correlation: 97.74 | Revenue CAGR: 3.75% | SUE: 2.10 | # QB: 3
EPS next Quarter (2026-04-30): EPS=0.82 | Chg30d=+0.012 | Revisions Net=-1 | Analysts=7
EPS next Year (2027-01-31): EPS=3.55 | Chg30d=+0.099 | Revisions Net=+3 | Growth EPS=-26.6% | Growth Revenue=+3.5%
Additional Sources for ZM Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle