Zoom Communications, Inc. (ZM) Financial Ratios
10 years of historical data (2017–2026) · Technology · Software - Application
EV/EBITDA
↓
24.73
↓-34% vs avg
5yr avg: 37.38
30Y Low21.5·High66.6
P/FCF
↓
16.79
↓-12% vs avg
5yr avg: 19.03
30Y Low13.5·High170.7
P/B Ratio
↓
3.29
↓-19% vs avg
5yr avg: 4.06
30Y Low2.5·High28.7
ROE
↓
20.3%
↓+42% vs avg
5yr avg: 14.3%
30Y Low-7%·High29%
Debt/EBITDA
↓
0.02
↓-80% vs avg
5yr avg: 0.12
30Y Low0.0·High2.5
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
ZM Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Zoom Communications, Inc. trades at 17.0x earnings, 74% below its 5-year average of 65.6x, sitting at the 20th percentile of its historical range. Compared to the Technology sector median P/E of 27.5x, the stock trades at a discount of 38%. On a free-cash-flow basis, the stock trades at 16.8x P/FCF, 12% below the 5-year average of 19.0x.
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $32.3B | $28.3B | $27.4B | $19.9B | $22.8B | $47.2B | $110.9B | $19.4B | — | — | — |
| Enterprise Value | $31.1B | $27.1B | $26.1B | $18.4B | $21.8B | $46.2B | $108.8B | $19.2B | — | — | — |
| P/E Ratio → | 17.01 | 14.90 | 27.08 | 31.21 | 220.59 | 34.28 | 165.36 | 892.40 | — | — | — |
| P/S Ratio | 6.64 | 5.81 | 5.87 | 4.40 | 5.19 | 11.51 | 41.84 | 31.16 | — | — | — |
| P/B Ratio | 3.29 | 2.89 | 3.07 | 2.49 | 3.68 | 8.16 | 28.73 | 23.27 | — | — | — |
| P/FCF | 16.79 | 14.71 | 15.14 | 13.54 | 19.42 | 32.32 | 80.07 | 170.70 | — | — | — |
| P/OCF | 16.24 | 14.23 | 14.08 | 12.47 | 17.68 | 29.39 | 75.40 | 127.74 | — | — | — |
P/E links to full P/E history page with 30-year chart
ZM EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Zoom Communications, Inc.'s enterprise value stands at 24.7x EBITDA, 34% below its 5-year average of 37.4x. The Technology sector median is 17.4x, placing the stock at a 42% premium on an enterprise-value basis.
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.56 | 5.60 | 4.07 | 4.97 | 11.27 | 41.03 | 30.82 | — | — | — |
| EV / EBITDA | 24.73 | 21.54 | 27.89 | 29.30 | 66.60 | 41.58 | 157.96 | 658.51 | — | — | — |
| EV / EBIT | 27.65 | 24.09 | 32.10 | 35.12 | 88.93 | 43.46 | 164.87 | 1511.68 | — | — | — |
| EV / FCF | — | 14.07 | 14.43 | 12.53 | 18.57 | 31.67 | 78.53 | 168.85 | — | — | — |
ZM Profitability
Margins and return-on-capital ratios measuring operating efficiency
Zoom Communications, Inc. earns an operating margin of 23.1%. Operating margins have expanded from 11.6% to 23.1% over the past 3 years, signaling improving operational efficiency. ROE of 20.3% indicates solid capital efficiency. ROIC of 10.4% represents solid returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 77.0% | 77.0% | 75.8% | 76.2% | 74.9% | 74.3% | 69.0% | 81.5% | 81.5% | 79.7% | 79.5% |
| Operating Margin | 23.1% | 23.1% | 17.4% | 11.6% | 5.6% | 25.9% | 24.9% | 2.0% | 1.9% | -3.2% | — |
| Net Profit Margin | 39.0% | 39.0% | 21.7% | 14.1% | 2.4% | 33.6% | 25.4% | 4.1% | 2.3% | -2.5% | -0.0% |
Return on Capital
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 20.3% | 20.3% | 11.9% | 9.0% | 1.7% | 28.5% | 28.6% | 6.1% | — | -7.3% | -0.0% |
| ROA | 16.6% | 16.6% | 9.7% | 7.1% | 1.3% | 21.4% | 20.4% | 3.1% | 2.7% | -2.0% | -0.0% |
| ROIC | 10.4% | 10.4% | 8.6% | 6.7% | 3.7% | 24.4% | 42.1% | 3.4% | — | — | — |
| ROCE | 11.8% | 11.8% | 9.4% | 7.2% | 4.0% | 21.3% | 26.4% | 2.2% | 3.5% | -3.4% | — |
ZM Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Zoom Communications, Inc. carries a Debt/EBITDA ratio of 0.0x, which is very conservative (99% below the sector average of 2.9x). The company holds a net cash position — cash of $1.3B exceeds total debt of $31M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns.
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.00 | 0.00 | 0.01 | 0.01 | 0.02 | 0.02 | 0.03 | 0.09 | — | — | — |
| Debt / EBITDA | 0.02 | 0.02 | 0.07 | 0.12 | 0.29 | 0.10 | 0.15 | 2.49 | 1.13 | — | — |
| Net Debt / Equity | — | -0.13 | -0.14 | -0.19 | -0.16 | -0.17 | -0.55 | -0.25 | — | — | -1.03 |
| Net Debt / EBITDA | -0.99 | -0.99 | -1.37 | -2.36 | -3.02 | -0.86 | -3.10 | -7.23 | -3.70 | — | -110.19 |
| Debt / FCF | — | -0.65 | -0.71 | -1.01 | -0.84 | -0.66 | -1.54 | -1.85 | -2.34 | -3.73 | -29.61 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Net cash position: cash ($1.3B) exceeds total debt ($31M)
ZM Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Zoom Communications, Inc.'s current ratio of 4.33x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The current ratio has declined from 4.50x to 4.33x over the past 3 years.
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 4.33 | 4.33 | 4.56 | 4.50 | 3.66 | 3.91 | 3.80 | 3.28 | 1.82 | 2.67 | 5.26 |
| Quick Ratio | 4.33 | 4.33 | 4.56 | 4.50 | 3.66 | 3.91 | 3.80 | 3.28 | 1.82 | 2.67 | 5.26 |
| Cash Ratio | 3.91 | 3.91 | 4.09 | 3.95 | 3.11 | 3.43 | 3.37 | 2.56 | 1.16 | 2.03 | 4.65 |
| Asset Turnover | — | 0.41 | 0.42 | 0.46 | 0.54 | 0.54 | 0.50 | 0.48 | 0.93 | 0.70 | 0.37 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 37.28 | 38.74 | 43.22 | 46.31 | 37.36 | 40.57 | 70.60 | 70.25 | 59.10 | 59.32 |
ZM Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Zoom Communications, Inc. returns 5.0% to shareholders annually primarily through share buybacks. The earnings yield of 5.9% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.9% | 6.7% | 3.7% | 3.2% | 0.5% | 2.9% | 0.6% | 0.1% | — | — | — |
| FCF Yield | 6.0% | 6.8% | 6.6% | 7.4% | 5.2% | 3.1% | 1.2% | 0.6% | — | — | — |
| Buyback Yield | 5.0% | 5.7% | 4.0% | 0.0% | 4.4% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 5.0% | 5.7% | 4.0% | 0.0% | 4.4% | 0.0% | 0.0% | 0.0% | — | — | — |
| Shares Outstanding | — | $307M | $315M | $309M | $304M | $306M | $298M | $254M | $269M | $269M | $269M |
Peer Comparison
Compare ZM with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 ZMYou | $32B | 17.0 | 24.7 | 16.8 | 77.0% | 23.1% | 20.3% | 10.4% | 0.0 |
 MSFT | $3.1T | 30.3 | 19.4 | 42.9 | 68.8% | 45.6% | 33.3% | 24.9% | 0.7 |
 GOOGL | $4.8T | 36.8 | 32.2 | 65.7 | 59.7% | 32.1% | 35.7% | 25.1% | 0.4 |
 CSCO | $363B | 35.9 | 26.2 | 27.3 | 64.9% | 20.8% | 22.1% | 13.0% | 2.0 |
 RNG | $4B | 95.3 | 13.9 | 7.0 | 71.2% | 5.0% | — | 12.2% | 3.8 |
 NICE | $6B | 10.0 | 6.7 | 8.3 | 66.4% | 21.9% | 16.4% | 13.2% | 0.2 |
 TWLO | $29B | 911.4 | 75.0 | 28.1 | 48.0% | 3.4% | 0.4% | 1.6% | 2.8 |
 BAND | $1B | -108.0 | 48.7 | 0.0 | 35.8% | -1.9% | -3.6% | -1.2% | 16.4 |
 EGHT | $337M | -11.5 | 12.1 | 6.7 | 67.9% | 2.1% | -24.3% | 2.5% | 7.5 |
 DDOG | $47B | 479.0 | 612.9 | 46.7 | 80.0% | -1.3% | 3.3% | -0.8% | 19.6 |
 NVDA | $5.0T | 42.4 | 37.9 | 52.2 | 71.1% | 60.4% | 101.5% | 81.8% | 0.1 |
| Technology Median | — | 27.5 | 17.4 | 19.8 | 48.6% | -0.5% | 2.4% | 2.9% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 10 years · Updated daily
Full ZM Stock Analysis
Analyst consensus, bull case, AI-generated risk factors, and peer comparison — all in one place.
See ZM's True Return
Price is only half the story. See total return with reinvested dividends.
Launch CalculatorIs ZM Undervalued?
DCF intrinsic value, peer multiples, and analyst estimates — see what the stock is really worth.
View ValuationCompare ZM vs MSFT
Side-by-side business, growth, and profitability comparison vs Microsoft Corporation.
Start ComparisonZM — Frequently Asked Questions
Quick answers to the most common questions about buying ZM stock.
What is Zoom Communications, Inc.'s P/E ratio?
Zoom Communications, Inc.'s current P/E ratio is 17.0x. The historical average is 54.6x. This places it at the 20th percentile of its historical range.
What is Zoom Communications, Inc.'s EV/EBITDA?
Zoom Communications, Inc.'s current EV/EBITDA is 24.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 37.4x.
What is Zoom Communications, Inc.'s ROE?
Zoom Communications, Inc.'s return on equity (ROE) is 20.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 11.0%.
Is ZM stock overvalued?
Based on historical data, Zoom Communications, Inc. is trading at a P/E of 17.0x. This is at the 20th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are Zoom Communications, Inc.'s profit margins?
Zoom Communications, Inc. has 77.0% gross margin and 23.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Zoom Communications, Inc. have?
Zoom Communications, Inc.'s Debt/EBITDA ratio is 0.0x, indicating low leverage. A ratio below 2x is generally considered financially healthy.