Zoom Communications, Inc. (ZM) P/E Ratio History
Deep ValueTrading at 14.0x · 0th percentile of 5-year range · Significant discount to historical valuation · Data 2020–2027
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P/E Ratio Analysis
As of June 22, 2026, Zoom Communications, Inc. (ZM) trades at a price-to-earnings ratio of 14.0x, with a stock price of $86.36 and trailing twelve-month earnings per share of $6.90.
The current P/E is 100% below its 5-year average of 3890.0x. Over the past five years, ZM's P/E has ranged from a low of 14.3x to a high of 76787.5x, placing the current valuation at the 0th percentile of its historical range.
Compared to the Technology sector median P/E of 29.0x, ZM trades at a 52% discount to its sector peers. The sector includes 352 companies with P/E ratios ranging from 0.0x to 187.7x.
The PEG ratio of 0.62 (P/E divided by 93% EPS growth) suggests the stock may be undervalued relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, ZM trades at a notable discount to the S&P 500 median P/E of 24.4x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our ZM DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
ZM Cross-Benchmark Valuation
How does the current P/E compare to sector peers and the broader market?
ZM P/E vs Peers
Communications and contact center software peers sorted by market cap
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $2.8T | 27.8 | 1.48 | +16% | |
| $4.5T | 34.0 | 1.14 | +34% | |
| $471B | 46.9 | - | +0% | |
| $3B | 73.0 | - | +176%Best | |
| $5B | 8.8Lowest | 0.33Best | +43% | |
| $28B | 886.5 | - | +132% | |
| $260M | 184.0 | - | +105% | |
| $79B | 743.3 | - | -41% | |
| $5.1T | 43.0 | 0.45 | +67% |
Lower P/E can signal a discount or weaker growth expectations; PEG adds growth context.
ZM Historical P/E Data (2020–2027)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Period End | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2027 Q1 | - | $97.15 | $6.80 | 14.3x | -100% |
| FY2026 Q4 | Jan 31 2026 | $92.10 | $6.19 | 14.9x | -99% |
| FY2026 Q3 | Oct 31 2025 | $87.23 | $5.13 | 17.0x | -99% |
| FY2026 Q2 | - | $74.05 | $3.79 | 19.5x | -99% |
| FY2026 Q1 | Apr 30 2025 | $77.54 | $3.33 | 23.3x | -99% |
| FY2025 Q4 | Jan 31 2025 | $86.94 | $3.21 | 27.1x | -99% |
| FY2025 Q3 | - | $74.74 | $3.00 | 24.9x | -99% |
| FY2025 Q2 | Jul 31 2024 | $60.40 | $2.80 | 21.6x | -99% |
| FY2025 Q1 | - | $61.10 | $2.69 | 22.7x | -99% |
| FY2024 Q4 | Jan 31 2024 | $64.61 | $2.05 | 31.5x | -99% |
| FY2024 Q3 | - | $59.98 | $0.74 | 81.0x | -97% |
| FY2024 Q2 | Jul 31 2023 | $73.35 | $0.44 | 166.4x | -94% |
| FY2024 Q1 | Apr 30 2023 | $61.43 | $0.00 | 76787.5x | +2499% |
| FY2023 Q4 | - | $75.00 | $0.32 | 234.4x | -92% |
| FY2023 Q3 | Oct 31 2022 | $83.44 | $2.28 | 36.6x | -99% |
| FY2023 Q2 | Jul 31 2022 | $103.86 | $3.23 | 32.2x | -99% |
| FY2023 Q1 | Apr 30 2022 | $99.57 | $4.12 | 24.2x | -99% |
| FY2022 Q4 | Jan 31 2022 | $154.28 | $4.49 | 34.4x | -99% |
| FY2022 Q3 | Oct 31 2021 | $274.65 | $3.76 | 73.0x | -98% |
| FY2022 Q2 | Jul 31 2021 | $378.10 | $3.31 | 114.2x | -96% |
| FY2022 Q1 | Apr 30 2021 | $319.57 | $2.90 | 110.2x | -96% |
| FY2021 Q4 | Jan 31 2021 | $372.07 | $2.25 | 165.4x | -94% |
| FY2021 Q3 | Oct 31 2020 | $460.91 | $1.43 | 322.3x | -89% |
| FY2021 Q2 | Jul 31 2020 | $253.91 | $0.78 | 325.5x | -89% |
| FY2021 Q1 | - | $135.17 | $0.17 | 795.1x | -73% |
| FY2020 Q4 | Jan 31 2020 | $76.30 | $0.09 | 867.0x | -71% |
| FY2020 Q3 | - | $69.89 | $0.08 | 873.6x | -70% |
| FY2020 Q2 | Jul 31 2019 | $95.51 | $0.07 | 1469.4x | -50% |
Average P/E for displayed period: 2954.6x
Full Stock Analysis
Deep dive into ZM consensus models and risk factors.
Intrinsic Valuation
DCF models, multiple analysis, and analyst estimates.
Historical Returns
6+ years return with dividends reinvested.
DCA Calculator
See how regular investing compounds over time.
Peer Comparison
Compare growth, multiples, and margins vs sector.
ZM — Frequently Asked Questions
Quick answers to the most common questions about buying ZM stock.
What is ZM's P/E ratio?
Zoom Communications, Inc. (ZM) trailing twelve-month P/E ratio is 14.0x, based on TTM diluted EPS of $6.90. The 5-year average P/E is 3890.0x and the historical range spans 14.3x to 76787.5x.
Is ZM stock overvalued or undervalued?
ZM trades at 14.0x P/E, below its 5-year average of 3890.0x. At the 0th percentile of its historical range (14.3x–76787.5x), the stock is priced at a discount to its own history.
Is ZM stock expensive?
No, ZM is not expensive on a historical basis. The current P/E of 14.0x is below the 5-year average of 3890.0x and sits at the 0th percentile of its valuation range.
What is ZM's historical P/E range?
Over the past 5 years, ZM's P/E ratio has ranged from 14.3x to 76787.5x, with a median of 31.5x and an average of 3890.0x. The current P/E of 14.0x places the stock at the 0th percentile of this range. Full historical data spans 2020–2027.
How does ZM's P/E compare to the S&P 500?
ZM trades at 14.0x P/E versus the S&P 500 median of 24.4x. The 43% discount to the market suggests lower growth expectations or perceived higher risk.
How does ZM's valuation compare to Technology peers?
Zoom Communications, Inc. P/E of 14.0x compares to the Technology sector median of 29.0x. The discount suggests lower growth expectations, weaker margins, or higher perceived risk relative to peers. See the peer comparison table on this page for ticker-by-ticker P/E and PEG.
What is ZM's PEG ratio?
ZM PEG ratio is 0.62, based on a P/E of 14.0x and EPS growth of 92.5%. A PEG below 1.0 indicates the valuation is supported by the earnings growth rate — typically considered attractive.
What is ZM's earnings yield?
ZM earnings yield is 7.16%, the inverse of its 14.0x P/E ratio. Earnings yield represents the percentage of each dollar invested that the company earns. It can be compared directly to bond yields to assess relative attractiveness of stocks versus fixed income.