Zoom Video Communications Inc (ZM) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Zoom Video Communications Inc stock (ZM) is currently trading at $78.11. Zoom Video Communications Inc PE ratio is 12.29. Zoom Video Communications Inc PS ratio (Price-to-Sales) is 4.62. Analyst consensus price target for ZM is $97.33. WallStSmart rates ZM as Moderate Buy.
- ZM PE ratio analysis and historical PE chart
- ZM PS ratio (Price-to-Sales) history and trend
- ZM intrinsic value — DCF, Graham Number, EPV models
- ZM stock price prediction 2025 2026 2027 2028 2029 2030
- ZM fair value vs current price
- ZM insider transactions and insider buying
- Is ZM undervalued or overvalued?
- Zoom Video Communications Inc financial analysis — revenue, earnings, cash flow
- ZM Piotroski F-Score and Altman Z-Score
- ZM analyst price target and Smart Rating
Zoom Video Communications Inc
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ZM Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Zoom Video Communications Inc (ZM)
ZM trades at a significant discount to its Graham intrinsic value of $289.22, offering a 68% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Zoom Video Communications Inc (ZM) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, return on equity, operating margin. Concerns around peg ratio. Overall metrics suggest strong investment potential with favorable risk/reward.
Zoom Video Communications Inc (ZM) Key Strengths (6)
Earnings per share surging 91.50% year-over-year
Keeps $39 of every $100 in revenue as net profit
79.02% of shares held by major funds and institutions
Large-cap company with substantial market presence
Every $100 of equity generates $20 in profit
Strong operational efficiency: $22 kept per $100 revenue
Supporting Valuation Data
Zoom Video Communications Inc (ZM) Areas to Watch (4)
Very expensive relative to growth, significant premium
Premium valuation at 4.6x annual revenue
Modest revenue growth at 5.30%
Fairly priced relative to book value
Zoom Video Communications Inc (ZM) Detailed Analysis Report
Overall Assessment
This company scores 70/100 in our Smart Analysis, earning a B- grade. Out of 10 metrics analyzed, 6 register as strengths (avg 9.3/10) while 4 fall into concern territory (avg 4.0/10). All four categories (Growth, Profitability, Valuation, and Quality) show healthy scores, indicating broadly sound fundamentals.
The Bull Case
The strongest argument centers on EPS Growth, Profit Margin, Institutional Own.. Profitability is solid with Return on Equity at 20.30%, Operating Margin at 21.50%, Profit Margin at 39.00%. Growth metrics are encouraging with EPS Growth at 91.50%.
The Bear Case
The primary concerns are PEG Ratio, Price/Sales, Revenue Growth. Some valuation metrics including PEG Ratio (4.21), Price/Sales (4.62), Price/Book (2.34) suggest expensive pricing. Growth concerns include Revenue Growth at 5.30%, which may limit upside.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether PEG Ratio improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 20.30% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 5.30% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
The combination of EPS Growth and Profit Margin makes a compelling case at current levels. The key risk is PEG Ratio, but the overall fundamental picture is positive with a clear path to maintaining or improving the current B- grade.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
ZM Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
ZM's Price-to-Sales ratio of 4.62x sits near its historical average of 4.62x (43th percentile), suggesting the market is pricing in steady-state growth. The current valuation is 2% below its historical high of 4.7x set in Mar 2026, and 2% above its historical low of 4.54x in Mar 2026.
WallStSmart Analysis Synopsis
Data-driven financial summary for Zoom Video Communications Inc (ZM) · TECHNOLOGY › SOFTWARE - APPLICATION
The Big Picture
Zoom Video Communications Inc is a mature, profitable business with steady cash generation. Revenue reached 4.9B with 5% growth year-over-year. Profit margins are strong at 39.0%, reflecting pricing power and operational efficiency.
Key Findings
ROE of 20.3% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Profit margin of 39.0% and operating margin of 21.5% demonstrate strong pricing power and operational efficiency.
What to Watch Next
Sector dynamics: monitor SOFTWARE - APPLICATION industry trends, competitive moves, and regulatory changes that could impact Zoom Video Communications Inc.
Bottom Line
Zoom Video Communications Inc is a well-established business delivering consistent profitability with 39.0% margins. The growth phase may be slowing, but strong cash generation and operational efficiency make it suitable for investors seeking reliability over excitement.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(65 last 3 months)
| Insider | Type | Shares |
|---|---|---|
SANKARLINGAM, VELCHAMY Pres. of Engineering & Product | Sell | -2,590 |
Data sourced from SEC Form 4 filings
Last updated: 2:34:38 PM
About Zoom Video Communications Inc(ZM)
NASDAQ
TECHNOLOGY
SOFTWARE - APPLICATION
USA
Zoom Video Communications, Inc. provides a premier video communications platform in the Americas, Asia Pacific, Europe, the Middle East, and Africa. The company is headquartered in San Jose, California.