Latest Ratios: P/E Ratio 13.7x · EV/EBITDA 18.9x · ROE 20.3%. (2017–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $24.9B | $28.3B | $27.4B | $19.9B | $22.8B | $47.2B | $110.9B | $19.4B | — | — | — |
| Enterprise Value | $23.7B | $27.1B | $26.1B | $18.4B | $21.8B | $46.2B | $108.8B | $19.2B | — | — | — |
| P/E Ratio → | 13.75 | 14.90 | 27.08 | 31.21 | 220.59 | 34.28 | 165.36 | 892.40 | — | — | — |
| P/S Ratio | 5.12 | 5.81 | 5.87 | 4.40 | 5.19 | 11.51 | 41.84 | 31.16 | — | — | — |
| P/B Ratio | 2.66 | 2.89 | 3.07 | 2.49 | 3.68 | 8.16 | 28.73 | 23.27 | — | — | — |
| P/FCF | 12.95 | 14.71 | 15.14 | 13.54 | 19.42 | 32.32 | 80.07 | 170.70 | — | — | — |
| P/OCF | 12.53 | 14.23 | 14.08 | 12.47 | 17.68 | 29.39 | 75.40 | 127.74 | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.56 | 5.60 | 4.07 | 4.97 | 11.27 | 41.03 | 30.82 | — | — | — |
| EV / EBITDA | 18.86 | 21.56 | 27.89 | 29.30 | 66.60 | 41.58 | 157.96 | 658.51 | — | — | — |
| EV / EBIT | 21.09 | 24.11 | 32.10 | 35.12 | 88.93 | 43.46 | 164.87 | 1511.68 | — | — | — |
| EV / FCF | — | 14.08 | 14.43 | 12.53 | 18.57 | 31.67 | 78.53 | 168.85 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 77.0% | 77.0% | 75.8% | 76.2% | 74.9% | 74.3% | 69.0% | 81.5% | 81.5% | 79.7% | 79.5% |
| Operating Margin | 23.1% | 23.1% | 17.4% | 11.6% | 5.6% | 25.9% | 24.9% | 2.0% | 1.9% | -3.2% | — |
| Net Profit Margin | 39.0% | 39.0% | 21.7% | 14.1% | 2.4% | 33.6% | 25.4% | 4.1% | 2.3% | -2.5% | -0.0% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 20.3% | 20.3% | 11.9% | 9.0% | 1.7% | 28.5% | 28.6% | 6.1% | — | -7.3% | -0.0% |
| ROA | 16.6% | 16.6% | 9.7% | 7.1% | 1.3% | 21.4% | 20.4% | 3.1% | 2.7% | -2.0% | -0.0% |
| ROIC | 10.4% | 10.4% | 8.6% | 6.7% | 3.7% | 24.4% | 42.1% | 3.4% | — | — | — |
| ROCE | 11.8% | 11.8% | 9.4% | 7.2% | 4.0% | 21.3% | 26.4% | 2.2% | 3.5% | -3.4% | — |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | 0.03 | 0.09 | — | — | — |
| Debt / EBITDA | 0.05 | 0.05 | 0.07 | 0.12 | 0.29 | 0.10 | 0.15 | 2.49 | 1.13 | — | — |
| Net Debt / Equity | — | -0.12 | -0.14 | -0.19 | -0.16 | -0.17 | -0.55 | -0.25 | — | — | -1.03 |
| Net Debt / EBITDA | -0.97 | -0.97 | -1.37 | -2.36 | -3.02 | -0.86 | -3.10 | -7.23 | -3.70 | — | -110.19 |
| Debt / FCF | — | -0.63 | -0.71 | -1.01 | -0.84 | -0.66 | -1.54 | -1.85 | -2.34 | -3.73 | -29.61 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Net cash position: cash ($1.3B) exceeds total debt ($58M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 4.33 | 4.33 | 4.56 | 4.50 | 3.66 | 3.91 | 3.80 | 3.28 | 1.82 | 2.67 | 5.26 |
| Quick Ratio | 4.33 | 4.33 | 4.56 | 4.50 | 3.66 | 3.91 | 3.80 | 3.28 | 1.82 | 2.67 | 5.26 |
| Cash Ratio | 3.91 | 3.91 | 4.09 | 3.95 | 3.11 | 3.43 | 3.37 | 2.56 | 1.16 | 2.03 | 4.65 |
| Asset Turnover | — | 0.41 | 0.42 | 0.46 | 0.54 | 0.54 | 0.50 | 0.48 | 0.93 | 0.70 | 0.37 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 37.28 | 38.74 | 43.22 | 46.31 | 37.36 | 40.57 | 70.60 | 70.25 | 59.10 | 59.32 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.3% | 6.7% | 3.7% | 3.2% | 0.5% | 2.9% | 0.6% | 0.1% | — | — | — |
| FCF Yield | 7.7% | 6.8% | 6.6% | 7.4% | 5.2% | 3.1% | 1.2% | 0.6% | — | — | — |
| Buyback Yield | 6.5% | 5.7% | 4.0% | 0.0% | 4.4% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 6.5% | 5.7% | 4.0% | 0.0% | 4.4% | 0.0% | 0.0% | 0.0% | — | — | — |
| Shares Outstanding | — | $307M | $315M | $309M | $304M | $306M | $298M | $254M | $269M | $269M | $269M |
Vendor consolidation and saturation
According to current market data, ZM trades at a forward P/E of 14.32, which, when compared to high-growth software peers, suggests investors are increasingly pricing the company as a mature utility rather than a high-growth innovator, despite its persistent 77% gross margin profile.
The current PEG ratio of 0.62 indicates that the market may be undervaluing the company's potential for earnings growth relative to its current price. This valuation gap warrants further investigation into whether the market is overly discounting the 'Zoom Phone' and AI-driven monetization opportunities in favor of a legacy video-only narrative.
Based on reported figures, ZM's ROIC has remained in a narrow range between 1.9% and 3.1% over the last ten quarters, suggesting that the company is struggling to compound returns on its invested capital as it pivots toward a multi-product platform strategy.
The persistent gap between ROIC and the company's high gross margins indicates that significant capital is being consumed by SG&A and R&D to defend market share. Investors should monitor whether the shift toward 'Zoom One' bundles can eventually improve capital efficiency by increasing the lifetime value of existing enterprise customers.
As evidenced by quarterly financial statements, ZM maintains a consistent DSO in the 34-43 day range, which suggests that the company's billing and collection processes remain highly efficient despite the transition from a high-growth land-grab phase to a more stable retention-focused enterprise model.
The stability in DSO, coupled with minimal inventory dependence, reflects a lean operational structure typical of a pure-play software provider. However, the lack of significant improvement in asset turnover suggests that the company's current asset base is not yet being leveraged to drive meaningful incremental revenue growth.
According to recent balance sheet data, ZM maintains a current ratio of 4.22 as of 2027Q1, providing a substantial liquidity buffer that appears more than adequate to withstand potential sector-specific downturns or increased competitive pricing pressure from bundled enterprise software alternatives.
This liquidity position is a critical defensive asset, allowing the company to fund share repurchases and R&D without the need for external financing. The absence of significant debt obligations further insulates the firm from interest rate volatility, providing a stable foundation for long-term strategic pivots.
As noted in industry analysis, the most commonly misapplied metric for ZM is 'seat growth,' which obscures the company's transition toward AI-driven monetization and multi-product bundles that decouple revenue potential from simple headcount-based licensing models.
Analysts should instead focus on Net Dollar Expansion Rate and the number of customers contributing over $100k in TTM revenue to gauge true enterprise stickiness. Relying solely on seat counts may lead to an inaccurate assessment of the company's ability to extract higher value from its existing user base.
Includes 30+ ratios · 10 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying ZM stock.
Zoom Communications, Inc.'s current P/E ratio is 13.7x. The historical average is 54.6x.
Zoom Communications, Inc.'s current EV/EBITDA is 18.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 37.4x.
Zoom Communications, Inc.'s return on equity (ROE) is 20.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 11.0%.
Based on historical data, Zoom Communications, Inc. is trading at a P/E of 13.7x. Compare with industry peers and growth rates for a complete picture.
Zoom Communications, Inc. has 77.0% gross margin and 23.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Zoom Communications, Inc.'s Debt/EBITDA ratio is 0.0x, indicating low leverage. A ratio below 2x is generally considered financially healthy.