Zoom Video Communications Inc (ZM) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Zoom Video Communications Inc stock $191, price $88.82, upside +115.0%, quality 78 out of 100. Rating: strongly undervalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $55.32 – $398.68 · fair‑value band $107.02 – $393.04 · the $88.82 price screens below the $190.97 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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Zoom Communications, Inc. provides an Artificial Intelligence-first open work platform for human connection in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.
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The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, a cloud phone system; and Zoom Team Chat enables users to share messages, images, files, and content in desktop, laptop, tablet, and mobile devices.
It also provides Zoom Docs, a modular workspace; Zoom Whiteboard, an interactive canvas; Zoom Clips for capturing video and screen content; Zoom Rooms, a software-based conference room system; and Workspace Reservation.
In addition, the company offers Zoom Contact Center, an omnichannel solution; Zoom Revenue Accelerator, a conversation intelligence software for Zoom Meetings and Zoom Phone; Zoom Events to manage, host, market, and report on all of virtual and hybrid events; Zoom Webinars Plus; and Zoom Webinars which supports interactive video presentations to large audiences.
Further, it provides Workvivo, an all-in-one employee experience platform; Zoom Developer Platform and App Marketplace which integrates platform with other applications, platforms, websites, and services; and Zoom Apps.
It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries.
The company was formerly known as Zoom Video Communications, Inc. and changed its name to Zoom Communications, Inc. in November 2024. The company was incorporated in 2011 and is headquartered in San Jose, California.
Stock analysis
Zoom Video Communications Inc (ZM) currently trades at $88.82, while our model-based Fair Value estimate is $190.97, implying the stock looks roughly 53% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $329.61 per share, and 19 of the 24 models we run sit above the $88.82 price.
Bear case: the Asset-Based group reads lowest at $24.71, and 5 of the 24 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $107.02 (bear) to $393.04 (bull), the price of $88.82 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 78/100 (high quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Zoom Video Communications Inc reported revenue of $4.9B in FY2026 versus $4.1B in FY2022, a compound +4.4%/yr. Reported net income was $1.9B in FY2026, compounding +8.4%/yr from FY2022.
Key figures
Market cap $27.3B Large · P/E ratio 9.0 · P/S ratio 5.47 · EPS (TTM) $10.77 · Net margin 65.2% · Return on equity 32.1% · Return on assets (EBIT) 7.8% · Operating margin 24.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 82 out of 100 (medium confidence).
What moves the price
Analysts expect earnings well below the last reported figure (earnings in transition, for example expiring patents or contracts); a fair value that looks fair on trailing earnings may then be too optimistic.
The share trades about 21% below its 52-week high and 22% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at 17% fair-value upside, at 115%, ZM screens cheaper than that median.
Fair Value models
Bear$107.02Fair Value $190.97Bull$393.04
Price $88.82 · Upside +115.0%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 9 months old). Earnings retained since then ($8.23 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 5 officers or directors sold shares worth $24.7M and none bought.
SaleEric S. YuanChief Executive Officer, Director13× since Nov 17, 2025: 812,157 shares, avg. $87.75$71.3MNov 4, 202610b5-1 plan
SaleSantiago SubotovskyDirector13× since Dec 4, 2025: 49,935 shares, avg. $96.80$4.8MOct 28, 202610b5-1 plan
SaleMichelle ChangChief Financial Officer6× since Jan 12, 2026: 44,367 shares, avg. $92.41$4.1MOct 21, 202610b5-1 plan
SaleHerbert Raymond McMasterDirector3× since Jul 14, 2026: 4,505 shares, avg. $96.88$436,439Oct 21, 202610b5-1 plan
SaleVelchamy SankarlingamPres. of Engineering & Product7× since Dec 10, 2025: 38,277 shares, avg. $90.10$3.4MOct 12, 202610b5-1 plan
SaleAparna BawaChief Operating Officer2× since Jan 16, 2026: 25,023 shares, avg. $84.59$2.1MApr 17, 202610b5-1 plan
Plus 23 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.98/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+4.4%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.5%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.9%
Start year 2021 (pandemic)
Revenue growth 9 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+62.7%
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What shareholders gained per year (last 5 years) (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip.
+22.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year+22.3%
Dividend (yield on the price)0.0%
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.25% → 23%
2026 sits 199% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−3.7%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+3.9%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −6.0% a year for the price and +1.5% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (98 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Neutral
Recent news coverage is roughly neutral, about typical for how stocks are covered.
AI conclusion: High margins and founder leadership offer moderate moat potential while intense competition and limited differentiation remain the main weakness.
Main risk: Intense competition eroding differentiation could restrict growth from the new AI workflow tools and contact center segment.
Zoom is shifting from video meetings to an AI platform that turns conversations into completed work across teams and customer service. Contact center products with AI features already account for most of that segment's revenue and deliver clear revenue uplifts plus lower churn. Our models see the stock as undervalued, yet will the new workflow tools generate enough fresh growth to move the business forward or will core communications remain the steady but limited engine?
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Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Application · 633 stocks
Beats the industry median on 8/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score78 · Top 25%
Fair Value upside+115.0% · Top 25%
Profitability
Return on equity (12 months)32.1% · Top 25%
Return on assets15.9% · Top 25%
Net margin (12 months)65.2% · Top 25%
Operating margin (12 months)24.6% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)4.9% · Below median
Valuation Multiplesvs Software - Application median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Zoom Video Communications Inc Fair Value". https://www.fairvalue-calculator.com/stock/ZM
Frequently asked questions
Is Zoom Video Communications Inc (ZM) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $190.97 versus a price of $88.82, about +115% upside (undervalued).
What is the fair value of ZM?
Our model-based fair value for Zoom Video Communications Inc is $190.97 (as of Nov 6, 2026), built from audited fundamentals. The current price: $88.82.
What is the quality score of ZM?
Zoom Video Communications Inc has a Quality Score of 78/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Zoom Video Communications Inc (ZM)?
Our model-based price target is the fair value of $190.97 (as of Nov 6, 2026) from 24 valuation models. Cautious scenario $107.02, optimistic scenario $393.04. It is a calculation from audited fundamentals, not an analyst target.
What is the Zoom Video Communications Inc stock forecast for 2026?
Our models put fair value at $190.97, about +115% upside versus a price of $88.82 (undervalued). Cautious scenario $107.02, optimistic scenario $393.04. The calculation is refreshed regularly with new filings.
What is the revenue of Zoom Video Communications Inc (ZM)?
Zoom Video Communications Inc reported trailing-twelve-month revenue of about $5.0B (latest available figure, as of Nov 6, 2026).
What growth is priced into Zoom Video Communications Inc (ZM)?
For today's price to be fair in a discounted-cash-flow model, Zoom Video Communications Inc would have to grow free cash flow by -3.7 % per year for five years (discount rate 9.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +12.9 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of ZM use?
Our models discount Zoom Video Communications Inc at 9.3 %: a base by market capitalisation (large), damped by beta 1.03, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Zoom Video Communications Inc that is -3.7 % per year a year over ten years, using the same discount rate (9.3 %) and the same formula as our fair value.
How much growth has Zoom Video Communications Inc (ZM) delivered so far?
Over the past 5 years revenue at Zoom Video Communications Inc grew +12.9 % a year. The price currently implies -3.7 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Zoom Video Communications Inc (ZM) growing?
The median revenue growth in the sector is +11.3 % a year. That is the yardstick for the growth priced into Zoom Video Communications Inc (-3.7 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Zoom Video Communications Inc (ZM)?
The free-cash-flow yield on the price is 7.05 %: that much free cash flow Zoom Video Communications Inc produces per unit of market value. When it exceeds the discount rate of our models (9.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Zoom Video Communications Inc (ZM)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Zoom Video Communications Inc it is $190.97 per share (as of Nov 6, 2026), against a price of $88.82. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Zoom Video Communications Inc stock overvalued or undervalued in 2026?
As of Nov 6, 2026, ZM trades below its calculated fair value: price $88.82, fair value $190.97, a gap of about +115% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of ZM?
No. The price is what the market pays today ($88.82); the fair value is what the company's own numbers justify ($190.97). For Zoom Video Communications Inc the two are $102.15 per share apart. That gap is exactly why we show both numbers side by side.
How much is Zoom Video Communications Inc worth?
The market values Zoom Video Communications Inc at about $27.3B (market capitalisation, as of Nov 6, 2026). Per share that is $88.82; our models calculate a fair value of $190.97 per share.
What do the bullish and bearish scenarios say about ZM?
Our models span a range for Zoom Video Communications Inc: cautious scenario $107.02, base $190.97, optimistic $393.04 per share (as of Nov 6, 2026, price $88.82). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of ZM?
Zoom Video Communications Inc trades at a price-to-earnings ratio of 9.0 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $190.97 is built from several models across several years. Median P/E at fiscal year-end, 7 fiscal years (2020 to 2026), reported earnings, FY2024 ex one-offs: 34.3. Other multiples: PEG 2.5, P/B 2.8, P/S 5.5, EV/EBITDA 19.5.
What is the PEG ratio of ZM?
The PEG ratio of Zoom Video Communications Inc is 2.52 (P/E divided by earnings growth, as of Nov 6, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Zoom Video Communications Inc (ZM)?
Balance-sheet figures for Zoom Video Communications Inc (as of Nov 6, 2026): return on equity 32.1%. They feed the Quality Score of 78/100, which measures business quality independently of the share price.
How far is ZM from its 52-week high?
Zoom Video Communications Inc trades at $88.82, about 21% below its 52-week high of $111.88 and 22% above the low of $72.72 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $190.97 is for.
Which stocks are comparable to Zoom Video Communications Inc?
From the same area (Technology) we also value SAP SE, Shopify Inc, Salesforce, Inc, ServiceNow, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Zoom Video Communications Inc stock attractive at the current price?
The data as of Nov 6, 2026: price $88.82, calculated fair value $190.97 (+115%), Quality Score 78/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of ZM calculated?
We run Zoom Video Communications Inc through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $190.97, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Zoom Video Communications Inc currently trades 53% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Zoom Video Communications Inc (ZM)?
The closing price on Nov 5, 2026 was $88.82. Our model-based fair value is $190.97, about +115% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Zoom Video Communications Inc right now?
The rarer combination: high quality (78/100) AND below fair value. That earns a closer look rather than a quick verdict. The price is below even our cautious bear case ($107.02). The market is more pessimistic than our downside scenario. The model range is unusually wide ($107.02 to $393.04). The outcome hinges heavily on assumptions, so read the point estimate with caution.
Key figures of Zoom Video Communications Inc
How large is the market capitalisation of Zoom Video Communications Inc (ZM)?
The market capitalisation of Zoom Video Communications Inc is $27.3B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Zoom Video Communications Inc (ZM)?
The price-to-sales ratio of Zoom Video Communications Inc is 5.47 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Zoom Video Communications Inc (ZM)?
Earnings per share at Zoom Video Communications Inc are $10.77 (price ÷ EPS = P/E 9.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Zoom Video Communications Inc (ZM)?
The net margin of Zoom Video Communications Inc is 65.2% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Zoom Video Communications Inc (ZM)?
The return on equity (ROE) of Zoom Video Communications Inc is 32.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Zoom Video Communications Inc (ZM)?
On an EBIT basis the return on assets of Zoom Video Communications Inc is 7.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Zoom Video Communications Inc (ZM)?
The operating margin of Zoom Video Communications Inc is 24.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Zoom Video Communications Inc (ZM)?
Revenue at Zoom Video Communications Inc is growing +4.9% versus a year earlier (3y avg +3.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Zoom Video Communications Inc (ZM)?
Earnings per share at Zoom Video Communications Inc are growing +342% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Zoom Video Communications Inc (ZM) hold?
Zoom Video Communications Inc holds more cash than debt, $1.2B net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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Nov 6, 2026