Zoom Communications, Inc.
Rank #248Capital ReturnZM · Nasdaq · Technology
Zoom Communications, Inc. (ZM) — Rank #248 by gross profitability (GP/assets 0.28) · ROE 16.8% · Piotroski F-Score 6 / 9.
As-of 2026-09-15 · CIK 0001585521 · all metrics point-in-time as of the filing date.
About
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.
- Industry
- Software - Application
- Sector
- Technology
- State
- DE
- Filer Category
- Large accelerated filer
- Fiscal Year End
- January 31
- Website
- zoom.com
Price History
Company Snapshot
P/E and reverse DCF are the primary valuation lenses at this stage.
Market Cap
$27.51B
P/E (annual)
15.3
P/S (annual)
5.6
P/B
2.4
P/OCF (annual)
13.8
Shareholder Yield
2.5%
Employees
7,438
Industry
Software - Application
Exchange
Nasdaq
Signal Flags
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
3/3 passGrowth
2/2 passTerry Smith quality gate
Passes 3/5 Terry Smith thresholds1 of 5 threshold not computable from filed data.
What Growth Is Priced In
Implied revenue growth (10Y)
3.8%
The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).
Buyback tailwind: -2.5% — per-share value needs a total required return of 1.4% once share-count change is priced in.
vs. own 6-year median revenue growth: 5.8%
within its own historyCost-of-equity sensitivity (implied growth at different discount rates)
r = 8%
-0.2%
r = 10% (base)
3.8%
r = 12%
7.4%
Net debt / market cap: -38.1%
Valuation History
Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.
P / E
Price / diluted EPS
P / S
Price / revenue per share
P / B
Price / book value per share
P / GP
Price / gross profit per share
P / FCF
Price / free cash flow per share
Earnings bubble check
Current margins may be above sustainable levels — a P/E based on peak earnings can overstate cheapness.
FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.
Profitability
Gross profitability (GP / assets)
0.28
Primary signal (Novy-Marx).
9th of 14 SIC 7370 peers
Return on equity
16.8%
Gross margin
77.0%
5th of 14 SIC 7370 peers
Revenue growth (YoY)
4.4%
RPO growth (YoY)
10.1%
Remaining performance obligations growth — RPO > revenue = forward demand building.
Gross margin improving
Margin trend vs prior year.
Operating Leverage
| 2023 | 2024 | 2025 | 2026 | |
|---|---|---|---|---|
| Revenue vs COGS | ||||
| Revenue vs OpEx | ||||
| Op. Income vs Revenue |
Growth
Revenue CAGR (3Y)
3.5%
Revenue CAGR (5Y)
12.9%
Earnings CAGR (3Y)
163.6%
FCF CAGR (3Y)
17.5%
Anti-fragile safety
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
0.20
2nd of 13 SIC 7370 peers (best = lowest)
Current ratio
3.83×
4th of 14 SIC 7370 peers
Quick ratio
3.67×
Net cash
$11.04B
Cash & equivalents minus total debt.
Cash-flow health
Free cash flow
$1.92B
Operating cash flow minus capex.
Positive free cash flow
FCF / net income
0.01
Cash-backing of earnings.
FCF/NI divergence
Unfavorable divergence (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
15.6%
Stock-based comp intensity.
Piotroski F-Score
F-Score
6 / 9
Fundamental-strength score (0-9).