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
Stock Evaluator: Zoom Communications, Inc. (ZM)
935 followersZoom Communications, Inc. ZM
$107.47
2.76
2.64%
August 19, 2026 4:00:00 PM
EST
Volume: 2,742,419
After Hours: $120.37
0.15
|
0.12%
November 10, 2021 7:59 PM
EST
Volume: 72,713
USD
NASD | DELAYED PRICE
| SECTOR | INDUSTRY |
| Information Technology | Software |
A+ Stock Grade Summary:
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COMPANY SUMMARY
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. 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.
Commentary & Analysis
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Which Is a Better Investment, Circle Internet Group, Inc. or Zoom Communications, Inc. Stock?
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Which Is a Better Investment, Riot Platforms, Inc. or Zoom Communications, Inc. Stock?
Learn more about whether Riot Platforms, Inc. or Zoom Communications, Inc. is a better investment based on AAII's A+ Investor grades, which compare both companies' key financial metrics.Tudor Pop
Why Zoom Communications, Inc.’s (ZM) Stock Is Down 6.73%
As of Tuesday, June 09, Zoom Communications, Inc.’s ZM share price has dipped by 6.73%, which has investors questioning if this is right time to buy.Jenna Brashear
Financial Summary
| Share Statistics | ZM | Industry Median |
Percentile (All Stocks) |
|
| Market Cap (Mil) | $31,513.7 | $1,026.0 | 90% |
|
| Shares Out (Mil) | 300.2 | 78.5 | 83% |
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| Institutional Ownership | 86.5% | 79.8% | 54% |
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| Float (Mil) | 260.3 | 53.5 | 78% |
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| Beta | 1.00 | 1.09 | 61% |
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| Avg Daily Volume (000s) | 2,677 | 821 | 86% |
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| Price Change (52-week) |
45.9% | 58.0% | 77% |
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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% | 10.0% | 77% |
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| EPS (5yr) | 22.4% | 16.3% | 72 |
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| Dividends (5yr) | 0.0% | 0.0% | 0% |
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| Cash Flow (5yr) | (15.3%) | (15.4%) | 50% |
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| Estimates | Qtrly | Current Fiscal Year |
Next Fiscal Year |
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| # of Estimates | 26 | na | 30 | |
| Current EPS | $1.477 | na | $6.306 | |
| 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 | $6.141 | |
| Year/Year Chg | 4.2% | na | 9.0% | |
| Financials | ZM | Industry Median |
Percentile (All Stocks) |
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| Sales (TTM) (Mil) | $4,933 | $345 | 74% |
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| Net Income (TTM) (Mil) | $2,071 | ($3) | 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) | $1 | 8% |
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| Long-Term Debt (Q1) (Mil) | $32 | $33 | 36% |
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| Enterprise Value (Q1) (Mil) | $23,316 | $1,259 | 85% |
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| Valuation | ZM | Industry Median |
Percentile (All Stocks) |
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| P/B | 3.16 | 3.41 | 65% |
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| P/E | 15.8 | 40.0 | 39% |
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| Dividend Yield | 0.0% | 0.0% | 0% |
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| PEG (5yr hist) | 0.7 | 2.1 | 34% |
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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% | 0.0% | 95% |
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| ROA | 17.9% | (1.4%) | 95% |
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| ROE | 21.9% | 0.7% | 81% |
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| Liabilities to Assets | 18.0% | 46.8% | 12% |
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| F-Score | 6 | 5 | 67% |
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Passing Stock Screens
As of 8/19/2026, from a list of 60 stock screening strategies,
FACTOR STRATEGY
Value on the Move--PEG With Hist Growth Screen
Factors: Value, Quality, Momentum, Growth
Using PEG ratios and price strength to find growth stocks trading at a reasonable price.
| Performance Since Inception: | 13.9% |
| +/- S&P 500: | +6.4 |
