Zoom Video Communications is a California-based communications technology company best known for its videoconferencing software, Zoom. Since the onset of the COVID-19 pandemic in 2020, Zoom saw the use of its videoconferencing software exponentially grow throughout the world, just a few months after its IPO on NASDAQ.
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| 52-week range | US$58.87 - US$75.9 |
|---|---|
| 50-day moving average | US$64.6376 |
| 200-day moving average | US$66.9142 |
| Target price | US$77.27 |
| PE ratio | 29.7826 |
| Dividend yield | N/A (0%) |
| Earnings per share (TTM) | US$2.07 |
Use the fields above to explore the returns from a historical investment. Please refer to the charts further up this page to see performance over 5 years, or other periods. Past performance doesn't indicate future results. Capital is at risk.
Historical closes compared with the last close of $61.65
| 1 week (2024-04-19) | 3.70% |
|---|---|
| 1 month (2024-03-26) | -7.08% |
| 3 months (2024-01-26) | -8.99% |
| 6 months (2023-10-26) | 3.61% |
| 1 year (2023-04-25) | -2.22% |
|---|---|
| 2 years (2022-04-25) | -39.82% |
| 3 years (2021-04-26) | -81.67% |
| 5 years (2019-04-26) | -6.90% |
The technical analysis gauge below displays real-time ratings for the timeframes you select. However, this is not a recommendation. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Valuing Zoom stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Zoom's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Zoom's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 30x. In other words, Zoom shares trade at around 30x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Zoom's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 4.7503. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Zoom's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Zoom's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$702.7 million (£0.0 million).
The EBITDA is a measure of a Zoom's overall financial performance and is widely used to measure stock profitability.
Over the last 12 months, Zoom's shares have ranged in value from as little as US$58.87 up to US$75.9. A popular way to gauge a stock's volatility is its "beta".
Beta measures a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Zoom's is -0.078. This would suggest that Zoom's shares have been inversely-correlated to the average (for this exchange) – so when the broader market trended up or down, Zoom has bucked the trend.
| Revenue TTM | US$4.5 billion |
|---|---|
| Operating margin TTM | 10.12% |
| Gross profit TTM | US$3.3 billion |
| Return on assets TTM | 4.14% |
| Return on equity TTM | 8.96% |
| Profit margin | 14.08% |
| Book value | 26.074 |
| Market capitalisation | US$19 billion |
TTM: trailing 12 months
We're not expecting Zoom to pay a dividend over the next 12 months.
Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. 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, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Rooms, a software-based conference room system; Zoom Conference Room Connector, a gateway for SIP/H.323 endpoints to join Zoom meetings; Zoom Events, which enables users to manage and host internal and external virtual events; OnZoom, a prosumer-focused virtual event platform and marketplace for Zoom users to create, host, and monetize online events; and Zoom Webinars to provide video presentations to large audiences from many devices. In addition, the company offers Zoom Developer Platform that enables developers, platform integrators, service providers, and customers to build apps and integrations using Zoom's video-based communications solutions, as well as integrate Zoom's technology into their products and services; Zoom App Marketplace, which helps developers to publish their apps, as well as third-party integrations of Zoom; and Zoom Contact Center, an omnichannel contact center solution. 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 Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. The company was incorporated in 2011 and is headquartered in San Jose, California.
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