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Zoom Communications, Inc. ZM NASDAQ

NASDAQ Global Select • Technology • Software - Application • US • USD

SharesGrow Score
81/100
6/7 Pass
SharesGrow Intrinsic Value
$156.45
+89.9%
Analyst Price Target
$99.00
+20.1%

Zoom Communications, Inc. (ZM) is a Software - Application company in the Technology sector, currently trading at $82.40. It has a SharesGrow Score of 81/100, indicating a strong investment profile with 6 out of 7 criteria passed.

SharesGrow calculates the intrinsic value of ZM = $156.45 (+89.9% from the current price, the stock appears undervalued). Analyst consensus target is ZM = $99 (+20.1% upside).

Valuation: ZM trades at a trailing Price-to-Earnings (P/E) of 13.1 (S&P 500 average ~25) with a forward Price/Earnings-to-Growth (PEG) of 2.78.

Financials: revenue is $4.9B, +3.5%/yr average growth. Net income is $1.9B, growing at +220.4%/yr. Net profit margin is 39% (strong). Gross margin is 77% (+2.1 pp trend).

Balance sheet: total debt is $58M against $9.8B equity (Debt-to-Equity (D/E) ratio 0.01, conservative). Current ratio is 4.33 (strong liquidity). Debt-to-assets is 0.5%. Total assets: $12.0B.

Analyst outlook: 18 / 48 analysts rate ZM as buy (38%) — mixed sentiment.

SharesGrow 7-Criteria breakdown: Value 68/100 (Pass), Growth 73/100 (Pass), Past 100/100 (Pass), Health 100/100 (Pass), Moat 80/100 (Pass), Future 46/100 (Partial), Income 100/100 (Pass).

$99.00
▲ 20.15% Upside
Average Price Target
Based on 48 Wall Street analysts offering 12-month price targets for Zoom Communications, Inc., the average price target is $99.00, with a high forecast of $115.00, and a low forecast of $85.00.
Highest Price Target
$115.00
Average Price Target
$99.00
Lowest Price Target
$85.00

ZM SharesGrow Score Overview

81/100
SharesGrow Score
Strong investment profile
View full scorecard →
VALUE 68/100
Valuation — P/E, PEG, Forward PEG
GROWTH 73/100
Financials — average growth
PAST 100/100
strong — trend
HEALTH 100/100
Balance sheet — Debt-to-Equity (D/E) ratio, Current ratio is
MOAT 80/100
Gross margin is + market cap
FUTURE 46/100
Analyst outlook — as buy
INCOME 100/100
Net profit margin is
Scores derived from financial statements, analyst ratings, and balance sheet data.

Score Breakdown — ZM

VALUE Pass
68/100
ZM trades at a trailing Price-to-Earnings (P/E) of 13.1 (S&P 500 average ~25). Forward PEG 2.78 — overvalued. Trailing PEG 0.64. Analyst consensus target is $99, implying +20.1% from the current price $82. Composite: Price-to-Earnings (20%) + Forward Price/Earnings-to-Growth (35%) + upside (25%) + trailing PEG (20%). ≥ 60 = Pass.
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GROWTH Pass
73/100
ZM: +3.5%/yr revenue is, +220.4%/yr Net income is average growth. mixed. Score: >20%/yr = 100, >10% = 80, >5% = 65, >0% = 45, < 0 = 15.
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PAST Pass
100/100
ZM: 4 / 4 years profitable. strong — 100%. Score = 4 / 4 × 100. ≥ 80 = Pass.
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HEALTH Pass
100/100
Balance sheet ZM: Debt-to-Equity (D/E) ratio 0.01 (conservative), Current ratio is 4.33 (strong liquidity). Debt-to-Equity < 0.5, Current Ratio > 1.5, Interest Coverage > 8x = ideal. ≥ 70 = Pass.
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MOAT Pass
80/100
ZM: Gross margin is 77% (+2.1 pp trend), $24B market cap. Moat (0-100): margin (35%) + trend (15%) + market cap (30%) + revenue is (20%). Score 80/100. ≥ 70 = Pass.
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FUTURE Partial
46/100
Analyst outlook: 18 / 48 analysts rate ZM as buy (38%). Analyst consensus target is $99 (+20.1% upside). Score: 60% buy consensus + 40% upside. ≥ 60 = Pass.
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INCOME Pass
100/100
ZM: Net profit margin is 39%. strong (≥30%). Score: ≥30% = 100, ≥20% = 85, ≥15% = 70, ≥10% = 55, ≥5% = 45, ≥0% = 30, < 0 = 10.
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Stock Chart & Stats

Market Data
52-Week Range64.41-97.58
Volume3.47M
Avg Volume (30D)4.35M
Market Cap$24.4B
Beta (1Y)0.88
Share Statistics
EPS (TTM)6.32
Shares Outstanding$300.5M
IPO Date2019-04-18
Employees7,412
CEOEric S. Yuan
Financial Highlights & Ratios
Revenue (TTM)$4.87B
Gross Profit$3.75B
EBITDA$2.56B
Net Income$1.9B
Operating Income$1.12B
Total Cash$7.82B
Total Debt$58.48M
Net Debt$-1.21B
Total Assets$11.96B
Price / Earnings (P/E)13
Price / Sales (P/S)5.01
Analyst Forecast
1Y Price Target$98.50
Target High$115.00
Target Low$85.00
Upside+19.5%
Rating ConsensusHold
Analysts Covering48
Buy 38% Hold 54% Sell 8%
Price Target Summary
Company Info
CountryUS
ExchangeNASDAQ Global Select
CurrencyUSD
ISINUS98980L1017

Price Chart

ZM
Zoom Communications, Inc.  ·  NASDAQ Global Select
Technology • Software - Application
64.41 52WK RANGE 97.58
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