Zoom Video Valuation
| ZM Stock | USD 85.36 1.95 2.34% |
At this time, the company appears to be overvalued. Zoom Video Communications maintains a prevalent Real Value of $68.86 per share. The last-minute price of the company is $85.36. Our model calculates the value of Zoom Video Communications from examining the company fundamentals such as Return On Asset of 0.0478, current valuation of 18.01 B, and Profit Margin of 0.19 % as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Zoom Video's valuation include:
Price Book 2.9577 | Enterprise Value 18 B | Enterprise Value Ebitda 20.6499 | Price Sales 5.5734 | Forward PE 15.6495 |
Overvalued
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 85.36 | Real 68.86 | Target 77.11 | Hype 85.68 | Naive 83.71 |
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 |
|
Zoom Valuation Trend
Knowing Zoom Video's actual value is paramount for traders when making sound investment determinations. Using both Zoom Video's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Zoom Video Total Value Analysis
Zoom Video Communications is at this time expected to have takeover value of 18.01 B with market capitalization of 25.56 B, debt of 72.95 M, and cash on hands of 1.09 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 |
18.01 B | 25.56 B | 72.95 M | 1.09 B |
Zoom Video Investor Information
About 69.0% of the company outstanding shares are owned by institutional investors. The book value of Zoom Video was at this time reported as 26.07. The company had not issued any dividends in recent years. Based on the analysis of Zoom Video's profitability, liquidity, and operating efficiency, Zoom Video Communications is not in a good financial situation at the present time. It has a very high chance of going through financial crunch in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Total Cash From Operating Activities | 852.2 M | 1.6 B |
|
|
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 45.59 percent. This suggests that the Company is making $0.46 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 Ownership Allocation
Zoom Video Communications retains a total of 262.13 Million outstanding shares. Over half of Zoom Video's outstanding shares are owned by institutional investors. These institutional investors are typically referred to as corporate investors that purchase positions in a given instrument to benefit from reduced trade commissions. 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 4.53 B. Reported Net Income was 637.46 M with gross profit of 3.29 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 | 3.4 B | 1.7 B | |
| Pretax Profit Margin | 0.18 | 0.19 | |
| Operating Profit Margin | 0.12 | 0.06 | |
| Net Profit Margin | 0.14 | 0.08 | |
| Gross Profit Margin | 0.76 | 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 | 308.5 M | |
| Quarterly Earnings Growth Y O Y | 0.173 | |
| Forward Price Earnings | 15.6495 |
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 population. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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 3.01 | 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.