Zoom Communications, Inc. (ZM) Financial Ratios
10 years of historical data (2017–2026) · Technology · Software - Application
EV/EBITDA
↓
19.19
↓-49% vs avg
5yr avg: 37.39
30Y Low21.6·High66.6
P/FCF
↓
13.16
↓-31% vs avg
5yr avg: 19.03
30Y Low13.5·High170.7
P/B Ratio
↓
2.71
↓-33% 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
↓
0.05
↓-63% 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 14.0x earnings, 79% below its 5-year average of 65.6x, sitting at the 0th percentile of its historical range. Compared to the Technology sector median P/E of 29.0x, the stock trades at a discount of 52%. On a free-cash-flow basis, the stock trades at 13.2x P/FCF, 31% 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 | $25.3B | $28.3B | $27.4B | $19.9B | $22.8B | $47.2B | $110.9B | $19.4B | — | — | — |
| Enterprise Value | $24.1B | $27.1B | $26.1B | $18.4B | $21.8B | $46.2B | $108.8B | $19.2B | — | — | — |
| P/E Ratio → | 13.97 | 14.90 | 27.08 | 31.21 | 220.59 | 34.28 | 165.36 | 892.40 | — | — | — |
| P/S Ratio | 5.20 | 5.81 | 5.87 | 4.40 | 5.19 | 11.51 | 41.84 | 31.16 | — | — | — |
| P/B Ratio | 2.71 | 2.89 | 3.07 | 2.49 | 3.68 | 8.16 | 28.73 | 23.27 | — | — | — |
| P/FCF | 13.16 | 14.71 | 15.14 | 13.54 | 19.42 | 32.32 | 80.07 | 170.70 | — | — | — |
| P/OCF | 12.73 | 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 19.2x EBITDA, 49% below its 5-year average of 37.4x. The Technology sector median is 16.7x, placing the stock at a 15% 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 | 19.19 | 21.56 | 27.89 | 29.30 | 66.60 | 41.58 | 157.96 | 658.51 | — | — | — |
| EV / EBIT | 21.46 | 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 | — | — | — |
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 (98% below the sector average of 2.9x). The company holds a net cash position — cash of $1.3B exceeds total debt of $58M, 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 | 0.01 | 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)
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 6.4% to shareholders annually primarily through share buybacks. The earnings yield of 7.2% (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 | 7.2% | 6.7% | 3.7% | 3.2% | 0.5% | 2.9% | 0.6% | 0.1% | — | — | — |
| FCF Yield | 7.6% | 6.8% | 6.6% | 7.4% | 5.2% | 3.1% | 1.2% | 0.6% | — | — | — |
| Buyback Yield | 6.4% | 5.7% | 4.0% | 0.0% | 4.4% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 6.4% | 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 | $25B | 14.0 | 19.2 | 13.2 | 77.0% | 23.1% | 20.3% | 10.4% | 0.0 |
 MSFT | $2.8T | 27.8 | 17.8 | 39.4 | 68.8% | 45.6% | 33.3% | 24.9% | 0.7 |
 GOOGL | $4.5T | 34.0 | 29.8 | 60.8 | 59.7% | 32.1% | 35.7% | 25.1% | 0.4 |
 CSCO | $471B | 46.9 | 33.6 | 35.5 | 64.9% | 20.8% | 22.1% | 13.0% | 1.9 |
 RNG | $3B | 73.0 | 11.3 | 5.2 | 71.2% | 5.0% | — | 12.2% | 3.8 |
 NICE | $5B | 8.8 | 5.8 | 7.3 | 66.4% | 21.9% | 16.4% | 13.2% | 0.2 |
 TWLO | $28B | 886.5 | 73.0 | 27.3 | 48.0% | 3.4% | 0.4% | 1.6% | 2.8 |
 BAND | $2B | -119.5 | 52.4 | 0.0 | 35.8% | -1.9% | -3.6% | -1.2% | 16.4 |
 EGHT | $260M | 184.0 | 28.4 | 5.0 | 64.6% | 2.6% | 1.2% | 3.3% | 19.6 |
 DDOG | $79B | 743.3 | 1030.2 | 79.3 | 80.0% | -1.3% | 3.3% | -0.8% | 19.6 |
 NVDA | $5.1T | 43.0 | 38.3 | 52.8 | 71.1% | 60.4% | 101.5% | 81.8% | 0.1 |
| Technology Median | — | 29.0 | 16.7 | 19.2 | 48.8% | 0.2% | 1.6% | 2.7% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 10 years · Updated daily
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ZM — 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 14.0x. The historical average is 54.6x.
What is Zoom Communications, Inc.'s EV/EBITDA?
Zoom Communications, Inc.'s current EV/EBITDA is 19.2x. 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 14.0x. 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.