Latest Ratios: P/E Ratio 14.9x · EV/EBITDA 20.5x · ROE 20.3%. (2017–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $26.9B | $28.3B | $27.4B | $19.9B | $22.8B | $47.2B | $110.9B | $19.4B | — | — | — |
| Enterprise Value | $25.7B | $27.1B | $26.1B | $18.4B | $21.8B | $46.2B | $108.8B | $19.2B | — | — | — |
| P/E Ratio → | 14.87 | 14.90 | 27.08 | 31.21 | 220.59 | 34.28 | 165.36 | 892.40 | — | — | — |
| P/S Ratio | 5.53 | 5.81 | 5.87 | 4.40 | 5.19 | 11.51 | 41.84 | 31.16 | — | — | — |
| P/B Ratio | 2.88 | 2.89 | 3.07 | 2.49 | 3.68 | 8.16 | 28.73 | 23.27 | — | — | — |
| P/FCF | 14.01 | 14.71 | 15.14 | 13.54 | 19.42 | 32.32 | 80.07 | 170.70 | — | — | — |
| P/OCF | 13.55 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 20.48 | 21.56 | 27.89 | 29.30 | 66.60 | 41.58 | 157.96 | 658.51 | — | — | — |
| EV / EBIT | 22.90 | 24.11 | 32.10 | 35.12 | 88.93 | 43.46 | 164.87 | 1511.68 | — | — | — |
| EV / FCF | — | 14.08 | 14.43 | 12.53 | 18.57 | 31.67 | 78.53 | 168.85 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% | — |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | 0.03 | 0.09 | — | — | — |
| Debt / EBITDA | 0.05 | 0.05 | 0.07 | 0.12 | 0.29 | 0.10 | 0.15 | 2.49 | 1.13 | — | — |
| Net Debt / Equity | — | -0.12 | -0.14 | -0.19 | -0.16 | -0.17 | -0.55 | -0.25 | — | — | -1.03 |
| Net Debt / EBITDA | -0.97 | -0.97 | -1.37 | -2.36 | -3.02 | -0.86 | -3.10 | -7.23 | -3.70 | — | -110.19 |
| Debt / FCF | — | -0.63 | -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 ($58M)
Short-term solvency ratios and asset-utilisation metrics
| 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 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.7% | 6.7% | 3.7% | 3.2% | 0.5% | 2.9% | 0.6% | 0.1% | — | — | — |
| FCF Yield | 7.1% | 6.8% | 6.6% | 7.4% | 5.2% | 3.1% | 1.2% | 0.6% | — | — | — |
| Buyback Yield | 6.0% | 5.7% | 4.0% | 0.0% | 4.4% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 6.0% | 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 |
Includes 30+ ratios · 10 years · Updated daily
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Quick answers to the most common questions about buying ZM stock.
Zoom Communications, Inc.'s current P/E ratio is 14.9x. The historical average is 54.6x.
Zoom Communications, Inc.'s current EV/EBITDA is 20.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 37.4x.
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%.
Based on historical data, Zoom Communications, Inc. is trading at a P/E of 14.9x. Compare with industry peers and growth rates for a complete picture.
Zoom Communications, Inc. has 77.0% gross margin and 23.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Zoom Communications, Inc.'s Debt/EBITDA ratio is 0.0x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Platform Bundling Threat
Metrics are mathematically derived from official filings.
Value Tech Pricing Reflects Maturity
Zoom's forward P/E of 16.15 and PEG of 0.71, as reported in current market data, suggest the stock is priced for stable, low-single-digit growth rather than a return to its former high-growth trajectory.
The valuation multiples place Zoom firmly in the 'mature SaaS' or 'value tech' category, trading at a significant discount to diversified software giants like Microsoft (Forward P/E 28.42) and Alphabet (Forward P/E 31.68). This pricing implies the market has largely discounted the potential for a material re-acceleration in growth from its new product pivots. The low PEG ratio indicates the current valuation may offer a margin of safety if the company can sustain its operational improvements and stabilize its core business.
Operating Leverage Offsets Growth Slowdown
Operating margin has expanded to 24.6% in the latest quarter, up from 17.8% ten quarters prior, demonstrating significant operating leverage that is partially masking the underlying revenue growth deceleration.
The consistent expansion in operating margin, driven by disciplined cost control, is the primary driver of earnings growth in the current environment. However, the extreme volatility in net margin, which reached 120.8% in the latest quarter, is heavily distorted by non-operating items like interest income from its large cash balance. Investors should focus on the operating margin trend as the truest indicator of the core business's earning power, which appears robust despite top-line headwinds.
Low ROIC Reflects Capital-Light Model
Return on Invested Capital (ROIC) has remained consistently low, averaging around 2.4% over the past ten quarters, which is a direct consequence of the company's massive equity base and negligible debt.
The persistently low ROIC is not a sign of operational inefficiency but rather a mathematical result of the company's fortress balance sheet, where a large equity base (fueled by retained earnings) is the denominator. This capital structure is a deliberate choice, providing immense financial flexibility but also suppressing traditional return metrics. The trend is stable, indicating the company is not destroying value, but it also suggests the capital is not being deployed in high-return internal projects, aligning with the observed shift toward share buybacks.
Negligible Leverage Eliminates Financial Risk
With a Debt-to-Equity ratio of just 0.01 and a current ratio of 3.83, Zoom's balance sheet is effectively unlevered, providing a substantial buffer against operational or market downturns.
The company's financial risk is virtually non-existent from a leverage perspective. The minimal debt load means interest coverage is not a relevant metric, and the primary financial risk is not solvency but rather the opportunity cost of holding a large, low-yielding cash balance. This fortress position allows management to pursue strategic investments or acquisitions without financing constraints, though the failed Five9 deal suggests execution risk remains the key hurdle.
The Misleading Net Margin
The reported net margin of 120.8% is the most commonly misapplied ratio for Zoom, as it is inflated by substantial interest income and does not reflect the core operational profitability of the business.
This metric is misleading because it combines operating income with significant non-operating income from interest on its cash reserves, creating a figure that overstates the earning power of Zoom's software platform. In a lower-rate environment, this benefit would diminish, causing net margin to converge toward the operating margin. Analysts should instead use the operating margin or free cash flow margin as the primary gauge of the company's true, sustainable profitability.