Zoom Communications, Inc. Class A Common Stock (ZM) Valuation
Historical valuation analysis based on 1279 data points (2021-09-14 to 2026-10-16)
Zoom Communications provides a video-first communications platform that connects people through frictionless video, voice, chat, and content sharing. The company's cloud-native platform enables vid...
Zoom Communications, Inc. Class A Common Stock (ZM) currently trades at a P/E ratio of 8.44 (historical range: 7.84–4089.55, median: 26.47), placing it at the 1th percentile — cheap relative to its history, P/S ratio of 5.50 (range: 3.80–24.17, 61th percentile — above its historical average), EV/EBITDA of 18.00 (range: 14.44–21.74, 70th percentile).
Over the historical period (2021-09-14 to 2026-10-16), Zoom Communications, Inc. Class A Common Stock's P/E ratio has contracted by 95% over the observed period (from an average of 415.9 to 22.1).
Zoom Communications, Inc. Class A Common Stock trades below its historical valuation range, with most metrics below their median levels.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 8.44 | 26.47 | 1th | cheap relative to its history |
| P/S Ratio | 5.50 | 5.27 | 61th | above its historical average |
| EV/EBITDA | 18.00 | 17.07 | 70th | above its historical average |
| FCF Yield | 7.01% | 6.43% | 66th | below its historical average |
Zoom Communications, Inc. Class A Common Stock (ZM) Valuation & P/E History
Zoom Communications, Inc. Class A Common Stock (ZM) is a US-listed stock operating in the Technology sector, specifically the Services-Computer Programming, Data Processing, Etc. industry currently trading at $94.20 with a market capitalization of $27.5 billion. This page provides historical valuation analysis for ZM based on 1279 data points covering 2021-09-14 to 2026-10-16. The P/E ratio of 8.44 is below the historical median of 26.47, placing ZM at the 1th percentile of its valuation range. The P/S ratio of 5.50 compares to a median of 5.27.
ZM Valuation Metrics & Historical Range
The valuation table above shows Zoom Communications, Inc. Class A Common Stock's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether ZM is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests ZM is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Zoom Communications, Inc. Class A Common Stock.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is ZM Overvalued or Undervalued?
Zoom Communications, Inc. Class A Common Stock trades below its historical valuation range, with most metrics below their median levels. The overall valuation percentile of 44 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive ZM is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full ZM analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.ZM trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.