Zoom Video Price To Sales vs. Return On Asset
| ZM Stock | USD 85.88 4.68 5.76% |
Zoom Video Price To Sales Ratio |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.85 | 0.7619 |
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For Zoom Video profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Zoom Video to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Zoom Video Communications utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Zoom Video's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Zoom Video Communications over time as well as its relative position and ranking within its peers.
Zoom |
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Zoom Video. If investors know Zoom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Zoom Video listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.173 | Earnings Share 2.8 | Revenue Per Share 14.962 | Quarterly Revenue Growth 0.021 | Return On Assets 0.0478 |
The market value of Zoom Video Communications is measured differently than its book value, which is the value of Zoom that is recorded on the company's balance sheet. Investors also form their own opinion of Zoom Video's value that differs from its market value or its book value, called intrinsic value, which is Zoom Video's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Zoom Video's market value can be influenced by many factors that don't directly affect Zoom Video's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Zoom Video's value and its price as these two are different measures arrived at by different means. Investors typically determine if Zoom Video is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Zoom Video's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Zoom Video Communications Return On Asset vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Zoom Video's current stock value. Our valuation model uses many indicators to compare Zoom Video value to that of its competitors to determine the firm's financial worth. Zoom Video Communications is rated first in price to sales category among its peers. It is rated first in return on asset category among its peers reporting about 0.01 of Return On Asset per Price To Sales. The ratio of Price To Sales to Return On Asset for Zoom Video Communications is roughly 120.56 . At this time, Zoom Video's Price To Sales Ratio is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Zoom Video by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Zoom Return On Asset vs. Price To Sales
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Zoom Video |
| = | 5.76 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Zoom Video |
| = | 0.0478 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Zoom Return On Asset Comparison
Zoom Video is currently under evaluation in return on asset category among its peers.
Zoom Video Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Zoom Video, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Zoom Video will eventually generate negative long term returns. The profitability progress is the general direction of Zoom Video's change in net profit over the period of time. It can combine multiple indicators of Zoom Video, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 1.1 M | 1.1 M | |
| Net Interest Income | 9.1 M | 7.9 M | |
| Interest Income | 43.2 M | 45.4 M | |
| Operating Income | 525.3 M | 344.9 M | |
| Net Income From Continuing Ops | 637.5 M | 387.5 M | |
| Income Before Tax | 832.3 M | 873.9 M | |
| Total Other Income Expense Net | 307 M | 322.4 M | |
| Net Income Applicable To Common Shares | 119.3 M | 113.3 M | |
| Net Income | 637.5 M | 387.5 M | |
| Income Tax Expense | 194.8 M | 204.6 M | |
| Non Operating Income Net Other | -33.8 M | -32.1 M | |
| Change To Netincome | 1.6 B | 1.6 B | |
| Net Income Per Share | 2.12 | 2.23 | |
| Income Quality | 2.51 | 2.63 | |
| Net Income Per E B T | 0.77 | 0.63 |
Zoom Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Zoom Video. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Zoom Video position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Zoom Video's important profitability drivers and their relationship over time.
Use Zoom Video in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Zoom Video position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Zoom Video will appreciate offsetting losses from the drop in the long position's value.Zoom Video Pair Trading
Zoom Video Communications Pair Trading Analysis
The ability to find closely correlated positions to Zoom Video could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Zoom Video when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Zoom Video - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Zoom Video Communications to buy it.
The correlation of Zoom Video is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Zoom Video moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Zoom Video Communications moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Zoom Video can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Zoom Video position
In addition to having Zoom Video in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Defense Thematic Idea Now
Defense
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Defense theme has 16 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Defense Theme or any other thematic opportunities.
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To fully project Zoom Video's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Zoom Video Communications at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Zoom Video's income statement, its balance sheet, and the statement of cash flows.