# Zoom Communications Inc. (ZM) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Communication Services / Diversified Telecommunication Services. Price $101.33, market value $29.6 billion.

## Valuation
- **P/E (trailing): 9.4×** (5-yr avg 65.6×, 3-yr avg 24.4×). Zoom Communications Inc. trades at 9.4× trailing earnings, well below its own five-year average of 65.6×: cheap by its own standards. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 16.0×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.17**. A PEG of 0.17 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 5.9×**. Each dollar of revenue is priced at 5.9×.
- **Price / book: 3.0×**. The shares trade at 3.0× book value; book value is a meaningful part of the valuation.
- **Free-cash-flow yield: 6.5%** (5-yr avg 5.8%). Free cash flow equals 6.5% of the market value, in line with its five-year average of 5.8%. Above 5% is generally attractive.
- **Earnings yield: 10.6%**. The inverse of the P/E: 10.6% of the price is earned each year.

## Profitability
- **Gross margin: 77.3%**. Zoom Communications Inc. keeps 77.3% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 23.7%**. 23.7% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 39.0%**. 39.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 19.4%**. 19.4% on shareholders' equity is solid.
- **Return on assets: 27.2%**. Each dollar of assets produces 27.2% of profit.

## Growth
- **Revenue growth (1 yr): 4.4%** (3-yr 3.5%/yr, 5-yr 12.9%/yr). Revenue grew 4.4% over the last year, against 12.9% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 92.5%** (3-yr 162.9%/yr, 5-yr 22.4%/yr). Earnings per share rose 92.5%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 17.5%/yr**. Free cash flow has compounded at 17.5% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Current ratio: 4.33** (quick 4.33). Current assets cover the next year's liabilities 4.33 times.
- **Altman Z-score: 10.78**. A Z-score of 10.78 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Zoom Communications Inc. does not currently pay a dividend.

## Analyst view
- **Analyst consensus: buy** (25 analysts). 25 analysts cover Zoom Communications Inc.; the consensus is buy, with an average price target of $118.24 (+17% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 22.4%** (YTD 17.4%, 3-mo -0.3%). The shares are up 22.4% over twelve months including dividends.
- **From 52-week high: -11.7%** (43.3% above the low). Trading 12% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 53**. An RSI of 53 is neutral.
- **Beta (1 yr): 1.00** (volatility 43%). Beta of 1.00 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ZM · Page: https://foliofundamentals.com/stocks/zm

Not investment advice.