Zoom Video Valuation
| ZM Stock | USD 92.60 0.36 0.39% |
At this time, the company appears to be fairly valued. Zoom Video Communications maintains a prevalent Real Value of $91.83 per share. The last-minute price of the company is $92.6. Our model calculates the value of Zoom Video Communications from examining the company fundamentals such as Current Valuation of 19.52 B, profit margin of 0.33 %, and Return On Asset of 0.0623 as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Zoom Video's valuation include:
Price Book 2.9525 | Enterprise Value | Enterprise Value Ebitda 15.8312 | Price Sales 5.7667 | Forward PE 15.2905 |
Fairly Valued
Today
Please note that Zoom Video's price fluctuation is very steady at this time. Calculation of the real value of Zoom Video Communications is based on 3 months time horizon. Increasing Zoom Video's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Zoom stock is determined by what a typical buyer is willing to pay for full or partial control of Zoom Video Communications. Since Zoom Video is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Zoom Stock. However, Zoom Video's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 92.6 | Real 91.83 | Target 97.59 | Hype 93.42 |
The intrinsic value of Zoom Video's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Zoom Video's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Zoom Video Communications helps investors to forecast how Zoom stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Zoom Video more accurately as focusing exclusively on Zoom Video's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Zoom Video's intrinsic value based on its ongoing forecasts of Zoom Video's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Zoom Video's closest peers.
Zoom Video Cash |
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Zoom Video Total Value Analysis
Zoom Video Communications is at this time expected to have takeover value of 19.52 B with market capitalization of 27.71 B, debt of 64.43 M, and cash on hands of 1.35 B. Please note that takeover value may be misleading and is a subject to accounting mistakes. We encourage investors to methodically examine all of the Zoom Video fundamentals before making investment evaluation based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
19.52 B | 27.71 B | 64.43 M | 1.35 B |
Zoom Video Investor Information
About 78.0% of the company outstanding shares are owned by institutional investors. The book value of Zoom Video was at this time reported as 31.27. The company recorded earning per share (EPS) of 5.14. Zoom Video Communications had not issued any dividends in recent years. Based on the analysis of Zoom Video's profitability, liquidity, and operating efficiency, Zoom Video Communications may be sliding down financialy. It has an above-average chance of going through some form of financial crunch next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 2.3 B | 2.2 B |
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Zoom Video Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Zoom Video has an asset utilization ratio of 42.46 percent. This suggests that the Company is making $0.42 for each dollar of assets. An increasing asset utilization means that Zoom Video Communications is more efficient with each dollar of assets it utilizes for everyday operations.Zoom Video Profitability Analysis
Considering Zoom Video's profitability and operating efficiency indicators, Zoom Video's profitability may be sliding down. It has an above-average chance of reporting lower numbers next quarter. Profitability indicators assess Zoom Video's ability to earn profits and add value for shareholders.Net Income | First Reported 2018-04-30 | Previous Quarter 358.6 M | Current Value 612.9 M | Quarterly Volatility 167.3 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.85 | 0.87 |
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For Zoom Video profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Zoom Video Communications to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Zoom Video 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 over time as well as its relative position and ranking within its peers.
Zoom Video Earnings per Share Projection vs Actual
By analyzing Zoom Video's earnings estimates, investors can diagnose different trends across Zoom Video's analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for Zoom Video Communications is based on EPS before non-recurring items and includes expenses related to employee stock options.Zoom Video Ownership Allocation
Zoom Video Communications retains a total of 265.57 Million outstanding shares. The majority of Zoom Video outstanding shares are owned by institutional investors. These institutions are usually referred to as non-private investors looking to purchase positions in Zoom Video Communications to benefit from reduced commissions. Consequently, other corporate entities are subject to a different set of regulations than regular investors in Zoom Video Communications. Please pay attention to any change in the institutional holdings of Zoom Video Communications as this could imply that something significant has changed or is about to change at the company. On February 8, 2022, Representative Marie Newman of US Congress acquired $15k to $50k worth of Zoom Video Communications's common stock.Zoom Video Profitability Analysis
The company generated the yearly revenue of 4.67 B. Reported Net Income was 1.01 B with gross profit of 3.7 B.About Zoom Video Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Zoom Video Communications. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Zoom Video Communications based exclusively on its fundamental and basic technical indicators. By analyzing Zoom Video's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Zoom Video's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Zoom Video. We calculate exposure to Zoom Video's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Zoom Video's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 4.1 B | 4.3 B | |
| Pretax Profit Margin | 0.25 | 0.27 | |
| Operating Profit Margin | 0.16 | 0.09 | |
| Net Profit Margin | 0.19 | 0.20 | |
| Gross Profit Margin | 0.87 | 0.85 |
Zoom Video Growth Indicators
Investing in growth stocks can be very risky. If the company such as Zoom Video does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 315.1 M | |
| Quarterly Earnings Growth Y O Y | 2.049 | |
| Forward Price Earnings | 15.2905 |
Zoom Video Current Valuation Indicators
Zoom Video's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Zoom Video's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Zoom Video, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Zoom Video's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Zoom Video's worth.Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Zoom Video Communications. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Will Application Software sector continue expanding? Could Zoom diversify its offerings? Factors like these will boost the valuation of Zoom Video. Anticipated expansion of Zoom directly elevates investor willingness to pay premium valuations. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Zoom Video data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth 2.049 | Earnings Share 5.14 | Revenue Per Share | Quarterly Revenue Growth 0.044 | Return On Assets |
Zoom Video Communications's market price often diverges from its book value, the accounting figure shown on Zoom's balance sheet. Smart investors calculate Zoom Video's intrinsic value - its true economic worth - which may differ significantly from both market price and book value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Since Zoom Video's trading price responds to investor sentiment, macroeconomic conditions, and market psychology, it can swing far from fundamental 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.