ZMZoom Communications, Inc.

$97.73+16% 1Y

Is the price fair?

Excellent

Undemanding: modest expectations priced in, cheap against its own history, and cheap vs its sector.

3 good
What the price assumes~−0% a yearderived · Jul 31, 2026

Priced for a decline (~−0% a year). The price demands less than its three-year revenue growth of 4% a year, expectations look modest.

Vs its own P/E rangecheapest in 22 quartersderived

Cheap vs its own history: P/E 9.1 vs a 29.2 median over 22 quarters (−69% vs median).

Vs sector (EV/EBIT)14.7×derived · Jan 31, 2026

Sector median 30.5× across 203 covered peers. EV/EBIT counts debt as part of the price, so a cash-rich and a borrowed company can be compared on the same footing.

Against the whole market›

Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.

P/E (valuation)top 8% of the market
FCF yieldbetter than 76% of the market

Where this answer is blind. The growth-implied estimate assumes a fixed discount rate; capital-heavy sectors look structurally rich on it.

What ZM's price assumes

Zoom Communications, Inc. trades at 9.06× earnings against 33.9× for the median Software - Application name, cheaper than its own group.

9.06

Trailing P/E · Software - Application median 33.9 · cheaper than the typical name in its group

Price / sales
4.99

Price / sales · today's price, fiscal year to Jan 31, 2026

Free cash flow yield
7.9%

Free cash flow yield · Software - Application median 6.9%

Growth the price implies
−0.48%

Growth the price implies · The price pays for −0.48% free cash flow growth a year for a decade; the business has delivered +19% a year over the last three.

Details›
Price / booktoday's price, fiscal year to Jan 31, 2026
2.48
EV / EBITtoday's price, fiscal year to Jan 31, 2026
14.7
EV / salestoday's price, fiscal year to Jan 31, 2026
3.39
Technology median P/E459 names
37.7
Software - Application median P/E126 names
33.9
Free cash flow, trailing twelve months
$1.93B
Market capitalisation
$24.3B
3-year revenue growth
+3.8%
3-year free cash flow growth
+19%
ZM has re-rated away from its own history, so multiplying the old multiple by today's earnings prices a full reversal, not the business
MethodPer share
What its own history would implynot meaningful, 9.06× today against a 29.2× median
52-week range$72.72 – $111.88
Today$97.73

Multiples from SEC filings and end-of-day closes; implied growth from a reverse discounted cash flow. Group medians across the names Ryufin tracks.