Is Zoom Communications, Inc. (ZM) Overvalued?
We dive into why Zoom Communications, Inc. (ZM) could be considered overvalued on 2026-07-20, based on AAII’s Value Score and Grade.Rosalio Madrigal
| SECTOR | INDUSTRY |
| Information Technology | Software |
A+ Stock Grade Summary:
| VALUE: |
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| GROWTH: |
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| MOMENTUM: |
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| EPS REVISIONS: |
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| QUALITY: |
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Rosalio Madrigal
Tudor Pop
Michael Rose
Tudor Pop
Jenna Brashear
| Share Statistics | ZM | Industry Median |
Percentile (All Stocks) |
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| Market Cap (Mil) | $27,071.2 | $988.2 | 89% |
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| Shares Out (Mil) | 300.2 | 78.1 | 83% |
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| Institutional Ownership | 86.4% | 78.8% | 54% |
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| Float (Mil) | 260.2 | 57.6 | 78% |
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| Beta | 1.00 | 1.03 | 60% |
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| Avg Daily Volume (000s) | 3,030 | 761 | 87% |
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| Price Change (52-week) |
23.9% | 56.2% | 65% |
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| Growth | ZM | Industry Median |
Percentile (All Stocks) |
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| Sales (5yr) | 12.9% | 14.8% | 68% |
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| Net Income (5yr) | 23.1% | 10.1% | 77% |
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| EPS (5yr) | 22.4% | 16.2% | 71 |
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| Dividends (5yr) | 0.0% | 0.0% | 0% |
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| Cash Flow (5yr) | (15.3%) | (15.3%) | 49% |
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| Estimates | Qtrly | Current Fiscal Year |
Next Fiscal Year |
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| # of Estimates | 26 | na | 30 | |
| Current EPS | $1.475 | na | $6.299 | |
| Month Ago EPS | $1.475 | na | $6.299 | |
| # Rev Up | 4 | na | 1 | |
| # Rev Down | 0 | na | 0 | |
| Three Months Ago EPS | $1.474 | na | $6.139 | |
| Year/Year Chg | 4.0% | na | 9.0% | |
| Financials | ZM | Industry Median |
Percentile (All Stocks) |
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| Sales (TTM) (Mil) | $4,933 | $348 | 75% |
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| Net Income (TTM) (Mil) | $2,071 | ($2) | 92% |
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| EPS (TTM) | $6.953 | ($0.100) | 91% |
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| Operating Cash Flow (TTM) (Mil) | $2,021 | $30 | 88% |
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| Net Cash Flow (TTM) (Mil) | ($316) | $0 | 8% |
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| Long-Term Debt (Q1) (Mil) | $32 | $35 | 35% |
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| Enterprise Value (Q1) (Mil) | $23,316 | $1,001 | 85% |
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| Valuation | ZM | Industry Median |
Percentile (All Stocks) |
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| P/B | 2.72 | 3.20 | 62% |
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| P/E | 13.6 | 33.6 | 30% |
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| Dividend Yield | 0.0% | 0.0% | 0% |
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| PEG (5yr hist) | 0.6 | 2.0 | 29% |
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| Ratios | ZM | Industry Median |
Percentile (All Stocks) |
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| Gross Margin | 77.8% | 70.5% | 87% |
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| Net Margin | 42.0% | 0.6% | 95% |
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| ROA | 17.9% | (1.6%) | 95% |
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| ROE | 21.9% | 1.6% | 82% |
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| Liabilities to Assets | 18.0% | 46.4% | 11% |
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| F-Score | 6 | 5 | 69% |
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Zoom Communications, Inc. did not pass any screens on 7/30/2026.
Price and market data provided by QuoteMedia and delayed a minimum of 15 minutes unless otherwise indicated. Fundamental data provided by AAII's Stock Investor Pro and S&P Global Market Intelligence and are updated through the previous trading day.
Ⓒ 2026 American Association of Individual Investors