Overview Dividends

(ZM) Zoom Video Communications - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US98980L1017

Video Conferencing, Cloud Phone, Team Chat, Workflow Automation, Contact Center

ZM EPS (Earnings per Share)

EPS Growth (3Y CAGR): 13.89%
EPS Trend (3Y Correlation): 14.3%

ZM Revenue

Revenue Growth (3Y CAGR): 3.69%
Revenue Trend (3Y Correlation): 95.6%

Description: ZM Zoom Video Communications

Zoom Communications Inc. is a leading provider of an AI-first work platform that enables human connection across various regions. The companys comprehensive suite of products includes Zoom Meetings, Zoom Phone, Zoom Team Chat, and other innovative solutions that facilitate communication, collaboration, and workflow automation.

Key Performance Indicators (KPIs) that highlight the companys success include its large and diverse customer base spanning multiple industries such as education, finance, healthcare, and software/Internet. The companys revenue growth has been driven by its ability to provide a seamless and integrated experience across various devices and platforms. Additionally, Zooms expanding ecosystem, including its App Marketplace and Developer Platform, has enabled the company to stay ahead of the competition and drive user engagement.

From a financial perspective, Zooms market capitalization stands at $22.6 billion, indicating its significant presence in the application software industry. The companys price-to-earnings ratio of 22.47 and forward P/E of 12.97 suggest a relatively stable valuation. Furthermore, Zooms return on equity (RoE) of 11.97% indicates a decent level of profitability.

To further analyze Zooms performance, other relevant KPIs could include its customer acquisition cost, revenue retention rate, and average revenue per user (ARPU). The companys ability to innovate and expand its product offerings, such as Zoom Contact Center and Zoom Revenue Accelerator, will be crucial in driving future growth and maintaining its competitive edge.

ZM Stock Overview

Market Cap in USD	24,522m
Sub-Industry	Application Software
IPO / Inception	2019-04-18

ZM Stock Ratings

Growth Rating	-3.99%
Fundamental	72.4%
Dividend Rating	-
Return 12m vs S&P 500	5.02%
Analyst Rating	3.65 of 5

ZM Dividends

Currently no dividends paid

ZM Growth Ratios

Growth Correlation 3m	17.2%
Growth Correlation 12m	8%
Growth Correlation 5y	-72.5%
CAGR 5y	2.22%
CAGR/Max DD 3y	0.06
CAGR/Mean DD 3y	0.11
Sharpe Ratio 12m	0.40
Alpha	7.22
Beta	0.848
Volatility	38.16%
Current Volume	1856.5k
Average Volume 20d	3181k
Stop Loss	81.3 (-3.2%)
Signal	-0.17

Piotroski VR‑10 (Strict, 0-10) 5.5

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 (825.9m) ratio: -1.39 <= 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 74.56%; Δ 1.82pp) >=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)

error: Interest Coverage Ratio cannot be calculated (needs EBITDA TTM and Interest Expense TTM)

Altman Z'' 7.96

(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

(D) 2.11 = Book Value of Equity 4.41b / Total Liabilities 2.09b

Total Rating: 7.96 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 72.43

1. Piotroski 5.50pt = 0.50

2. FCF Yield 10.91% = 5.0

3. FCF Margin 38.81% = 7.50

4. Debt/Equity 0.02 = 2.50

5. Debt/Ebitda 0.20 = 2.47

6. ROIC - WACC -2.91% = -3.64

7. RoE 13.40% = 1.12

8. Rev. Trend 95.64% = 4.78

9. Rev. CAGR 3.69% = 0.46

10. EPS Trend 14.27% = 0.36

11. EPS CAGR 13.89% = 1.39

What is the price of ZM shares?

As of September 15, 2025, the stock is trading at USD 83.98 with a total of 1,856,513 shares traded.
Over the past week, the price has changed by -1.29%, over one month by +16.87%, over three months by +7.85% and over the past year by +24.19%.

Is Zoom Video Communications a good stock to buy?

Partly, yes. Based on ValueRay´s Fundamental Analyses, Zoom Video Communications (NASDAQ:ZM) is currently (September 2025) ok to buy, but has to be watched. It has a ValueRay Fundamental Rating of 72.43 and therefor a somewhat positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of ZM is around 74.19 USD . This means that ZM is currently overvalued and has a potential downside of -11.66%.

Is ZM a buy, sell or hold?

Zoom Video Communications has received a consensus analysts rating of 3.65. Therefor, it is recommend to hold ZM.

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	91.6	9.1%
Analysts Target Price	91.6	9.1%
ValueRay Target Price	83.2	-0.9%

Last update: 2025-09-04 02:50

ZM Fundamental Data Overview

Market Cap USD = 24.52b (24.52b USD * 1.0 USD.USD)
CCE Cash And Equivalents = 7.78b USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 21.5618
P/E Forward = 13.7741
P/S = 5.1586
P/B = 2.7227
P/EG = 2.7146
Beta = 0.681
Revenue TTM = 4.75b USD
EBIT TTM = 723.7m USD
EBITDA TTM = 825.9m USD
Long Term Debt = 146.3m USD (from nonCurrentLiabilitiesTotal, last quarter)
Short Term Debt = 22.2m USD (from shortTermDebt, last quarter)
Debt = 168.5m USD (Calculated: Short Term 22.2m + Long Term 146.3m)
Net Debt = -1.14b USD (from netDebt column, last quarter)
Enterprise Value = 16.91b USD (24.52b + Debt 168.5m - CCE 7.78b)
Interest Coverage Ratio = unknown (Ebit TTM 723.7m / Interest Expense TTM 0.0)
FCF Yield = 10.91% (FCF TTM 1.84b / Enterprise Value 16.91b)
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)
Tobins Q-Ratio = 3.83 (Enterprise Value 16.91b / Book Value Of Equity 4.41b)
Interest Expense / Debt = 19.87% (Interest Expense 33.5m / Debt 168.5m)
Taxrate = 23.21% (305.3m / 1.32b)
NOPAT = 555.7m (EBIT 723.7m * (1 - 23.21%))
Current Ratio = 4.45 (Total Current Assets 8.66b / Total Current Liabilities 1.95b)
Debt / Equity = 0.02 (Debt 168.5m / last Quarter total Stockholder Equity 8.95b)
Debt / EBITDA = 0.20 (Net Debt -1.14b / EBITDA 825.9m)
Debt / FCF = 0.09 (Debt 168.5m / FCF TTM 1.84b)
Total Stockholder Equity = 8.87b (last 4 quarters mean)
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 = 8.03% (Ebit 723.7m / (Equity 8.87b + L.T.Debt 146.3m))
RoIC = 6.27% (NOPAT 555.7m / Invested Capital 8.87b)
WACC = 9.18% (E(24.52b)/V(24.69b) * Re(9.14%)) + (D(168.5m)/V(24.69b) * Rd(19.87%) * (1-Tc(0.23)))
Shares Correlation 3-Years: 54.55 | Cagr: 0.19%
Discount Rate = 9.14% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 75.69% ; FCFE base≈1.80b ; Y1≈1.95b ; Y5≈2.44b
Fair Price DCF = 130.9 (DCF Value 34.89b / Shares Outstanding 266.5m; 5y FCF grow 9.72% → 3.0% )
Revenue Correlation: 95.64 | Revenue CAGR: 3.69%
Rev Growth-of-Growth: 0.66
EPS Correlation: 14.27 | EPS CAGR: 13.89%
EPS Growth-of-Growth: -20.65

Additional Sources for ZM Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
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Fund Manager Positions: Dataroma | Stockcircle