What is ZM's intrinsic value?

TickerWorth's valuation lenses put Zoom Communications, Inc. (ZM) between $49.17 and $156.63 per share, versus a market price of $94.19. They disagree too widely for us to state a single fair value, so we publish the range.

Is ZM overvalued or undervalued?

At $94.19 the price sits inside a range too wide to call either way. We don't call ZM overvalued or undervalued from a range this wide. This is an educational estimate, not advice.

What discount rate is used for ZM?

A WACC of 10.4% and a terminal growth rate of 2.5%.

Is Zoom Communications stock undervalued?

TickerWorth's fair-value range for Zoom Communications, Inc. (ZM) is $49.17 – $156.63 against a market price of $94.19. Too wide to call. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.

Zoom Communications (ZM) DCF valuation and fair value

Our fair-value range for Zoom Communications, Inc. (ZM) is $49.17 – $156.63, built on a 10.4% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.

What growth is priced into Zoom Communications stock?

Today's price implies revenue growth of 8.1% a year for 5 years; our model assumes 4.0% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $94.19. A model estimate, not investment advice.

Zoom Communications (ZM) insider trading

The most recent insider filing (SEC Form 4) for Zoom Communications, Inc. (ZM): McGarry Kimberly J, Chief Accounting Officer, shares withheld (tax) on 2026-10-13. The latest filings are listed on this page. A disclosure, not a signal to trade.

ZM · Intrinsic value

Is Zoom Communications, Inc. (ZM) overvalued or undervalued?

Name: Zoom Communications, Inc. (ZM) DCF intrinsic value
Creator: TickerWorth

As of Oct 19, 2026, TickerWorth's valuation lenses put Zoom Communications, Inc. (ZM) at $49.17 – $156.63, too broad a range to say where the delayed market price of $94.19 sits in it, so we do not call it over- or undervalued. It is a model estimate, and every input behind it is sourced below.

Model by Miraaj Patel · generated from a hand-researched model · Updated Oct 19, 2026 · How these pages are made

Open full ZM analysis

What is ZM worth?

Backup data source

This price comes from our backup market-data feed.

Fair-value range: $49.17 – $156.63
Market price: $94.19
Gap to fair value: —
Verdict: Too wide to call

Price as of 19 Oct 2026, 12:54 UTC · Prices are delayed.Our valuation lenses disagree too widely on this company for us to publish a single number, so we publish the range instead. We do not call it over- or undervalued from a spread this wide.

Fair-value range against the delayed market price: Too wide to call.

Reverse DCF: Today's price implies revenue growth of 8.1% a year for 5 years; our model assumes 4.0% a year on average over the same horizon.

What is ZM's TickerWorth Score?

A67/100

Scores higher than almost every company we compare it with

Compared with Technology companies in US

Its strongest point: a profitable, high-quality business. Its weakest: growth is slow or negative.

Value · 76 of 100
Cheaper than 76% of Technology companies in US
Price vs worth · 56 of 100
Quality · 84 of 100
More profitable than 84% of Technology companies in US
Financial health · 83 of 100
Financially stronger than 83% of Technology companies in US
Growth · 34 of 100
Growing faster than 34% of Technology companies in US
Momentum · 54 of 100
Outperformed 54% of Technology companies in US over the past year

Confidence: Medium confidence · Scored 19 Oct 2026, 12:54 UTC

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Where the numbers come from

Hand-researched model

What the modeller flagged

YEAR-1 FCF IS ~45% BELOW ZOOM'S REPORTED FCF (~$1,066M modeled vs $1,924.1M FY2026; FY2027 guide $1.78-1.82B). It decomposes: start from FY2026 reported FCF $1,924M; less stock compensation $761M (expensed here, added back by Zoom); less ~$256M of after-tax interest income on the cash pile (excluded from EBIT because the cash itself is credited in net_debt); less ~$52M to lift capex to depreciation; plus ~$50M of other items (cash taxes above the normalized 22% rate, non-cash impairment and stock donation, working capital) = ~$907M for FY2026 on this model's rules. FY2027's guided revenue and the higher GAAP margin add ~$160M to reach Year 1.
THE DISCOUNT RATE IS THE WHOLE DISAGREEMENT. At the published beta (1.03) Zoom's cash flows are discounted at 10.4%. At Dropbox's 8.44% WACC the same forecast gives ~$98.70, above today's price; a beta of ~0.74 is enough to justify the price. Zoom's cash-heavy balance sheet cuts the other way: a beta measured on the operating business alone (~1.4) would give ~$73.
SBC treatment: stock pay stays expensed inside GAAP EBIT (~$750M a year, ~14.7% of FY2027 revenue) and dilution is captured through the diluted share count. Using Zoom's ~40.7% non-GAAP margin instead would lift the value to ~$107/share; today's price sits between the two views.
TERMINAL VALUE IS ~70% OF THE OPERATING BUSINESS'S VALUE (implied exit ~9.5x EBITDA), but only ~41% of the equity value, because $10.4B of the equity is cash and investments that need no forecast. The WACC/terminal-growth grid runs ~$72 to ~$103.
THE ANTHROPIC MARK IS A LEVEL-3-STYLE JUDGEMENT BY ZOOM, not a market price. It moved $1.6B in one quarter. Excluding the strategic investments entirely gives ~$72.15. Zoom does not disclose its Anthropic cost basis, so the $670M tax haircut is an estimate built from the gains it has booked.
AI IS A TWO-SIDED, UNMODELED RISK. Zoom sells AI Companion, Virtual Agent and Contact Center into the same seats that Microsoft Teams, Google and AI-native meeting tools compete for; Online (~38% of revenue) is already flat. The revenue path assumes ~4% growth, neither a breakout nor an erosion.

Why ZM gets a range, not one number

At a recent price of $94.19, Zoom Communications, Inc. (ZM) sits inside a range too wide to call either way: our valuation lenses put the business somewhere between $49.17 and $156.63 per share. They disagree too widely for us to state a single fair value. We publish the range rather than a midpoint because a number that precise would claim more than the methods can support. This is an educational model, not a price target or a recommendation.

Read the full reasoning

The valuation discounts Zoom Communications, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 10.4%, with a long-run terminal growth rate of 2.5%. About 70% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.

Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 8.1% annual revenue growth for ZM. Our base case instead compounds to about 4.0% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.

Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, ZM's modeled DCF value ranges from about $72.03 to $102.69 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.

How to read this page: the DCF fair value is what Zoom Communications, Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of ZM's intrinsic value. Figures update as new filings and prices come in.

Every input behind ZM's DCF

Input	Value	Source
Base-year revenueZoom FY2026 10-K (accession 0001585521-26-000030, filed 2026-02-27); Q4/FY2026 results release 8-K Ex-99.1 (accession 0001585521-26-000026): FY2026 (fiscal year ended 2026-01-31) revenue $4,868.8M, +4.4% on FY2025's $4,665.4M (+4.2% in constant currency). Zoom's fiscal year ends 31 January, so 'FY2026' is mostly calendar 2025. Mix: Enterprise ~61% (Q4 $757.3M, +7.1%), Online ~39% (Q4 $489.7M, +2.6%). CROSS-CHECK: H1 FY2027 (Feb-Jul 2026) revenue $2,516.2M, +5.2% on H1 FY2026 $2,391.9M (+4.7% constant currency); TTM to 2026-07-31 = $4,993.1M. Q2 FY2027 Enterprise +7.8% (fastest in three years), Online +0.6%. Remaining performance obligations were $4,185.0M at 2026-01-31, 57% due within 12 months.	$4,868,800,000	Zoom FY2026 10-K (accession 0001585521-26-000030, filed 2026-02-27); Q4/FY2026 results release 8-K Ex-99.1 (accession 0001585521-26-000026): FY2026 (fiscal year ended 2026-01-31) revenue $4,868.8M, +4.4% on FY2025's $4,665.4M (+4.2% in constant currency). Zoom's fiscal year ends 31 January, so 'FY2026' is mostly calendar 2025. Mix: Enterprise ~61% (Q4 $757.3M, +7.1%), Online ~39% (Q4 $489.7M, +2.6%). CROSS-CHECK: H1 FY2027 (Feb-Jul 2026) revenue $2,516.2M, +5.2% on H1 FY2026 $2,391.9M (+4.7% constant currency); TTM to 2026-07-31 = $4,993.1M. Q2 FY2027 Enterprise +7.8% (fastest in three years), Online +0.6%. Remaining performance obligations were $4,185.0M at 2026-01-31, 57% due within 12 months.
Base EBIT marginZoom Q4/FY2026 results release, 8-K Ex-99.1 (accession 0001585521-26-000026, filed 2026-02-25); FY2026 10-K (accession 0001585521-26-000030): GAAP income from operations $1,123.6M / revenue $4,868.8M = 23.08%. This is AFTER $797.2M of stock-based compensation and related payroll taxes (16.4% of revenue) and $25.2M of acquisition-related expense. Three one-offs roughly cancel: an $18.0M litigation-settlement credit, against an $18.2M asset impairment and a $20.9M charitable donation of common stock (net ~$21M drag, ~0.4 points). Company non-GAAP operating margin 40.4%; the 17-point gap is almost entirely stock pay. FY2025 GAAP margin was 17.4% with SBC of $931.3M (20.0% of revenue), so the margin trend is SBC falling. CROSS-CHECK: H1 FY2027 GAAP operating margin 24.8% ($624.8M), Q2 alone 24.6%; TTM 23.7%. H1 SBC $358.7M = 14.3% of revenue. Interest income on the cash pile ($328.8M of 'other income' in FY2026) and the $969.8M of strategic-investment gains sit BELOW operating income and are excluded here; the cash and investments are credited through net_debt instead.	23.1%	Zoom Q4/FY2026 results release, 8-K Ex-99.1 (accession 0001585521-26-000026, filed 2026-02-25); FY2026 10-K (accession 0001585521-26-000030): GAAP income from operations $1,123.6M / revenue $4,868.8M = 23.08%. This is AFTER $797.2M of stock-based compensation and related payroll taxes (16.4% of revenue) and $25.2M of acquisition-related expense. Three one-offs roughly cancel: an $18.0M litigation-settlement credit, against an $18.2M asset impairment and a $20.9M charitable donation of common stock (net ~$21M drag, ~0.4 points). Company non-GAAP operating margin 40.4%; the 17-point gap is almost entirely stock pay. FY2025 GAAP margin was 17.4% with SBC of $931.3M (20.0% of revenue), so the margin trend is SBC falling. CROSS-CHECK: H1 FY2027 GAAP operating margin 24.8% ($624.8M), Q2 alone 24.6%; TTM 23.7%. H1 SBC $358.7M = 14.3% of revenue. Interest income on the cash pile ($328.8M of 'other income' in FY2026) and the $969.8M of strategic-investment gains sit BELOW operating income and are excluded here; the cash and investments are credited through net_debt instead.
Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast	5% → 4% → 4% → 4% → 4%	ESTIMATEAssumption — TickerWorth's 5-year explicit forecast
Risk-free rateUS 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation; program-wide input shared by every researched model.	5.2%	US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation; program-wide input shared by every researched model.
Betayfinance 5Y-monthly beta (published): Published 5Y-monthly beta 1.033, used AS PUBLISHED. Zoom has no debt, so there is nothing to relever. Two arguments pull in opposite directions and I take neither: (a) about 38% of Zoom's market value is cash, securities and the Anthropic stake, and cash has a beta near zero, so the OPERATING business is arguably riskier than 1.03 (stripping out the cash alone gives ~1.4, which would cut the value by ~$9.15/share); (b) the window still contains the 2021-22 post-pandemic collapse, and a mature subscription business at 40% non-GAAP margins could argue for ~0.85 (+$6.40/share). Gives a 10.4% cost of equity - well above Dropbox's 8.4% WACC, which is the main reason this model values Zoom's cash flows at a lower multiple.	1.03	yfinance 5Y-monthly beta (published): Published 5Y-monthly beta 1.033, used AS PUBLISHED. Zoom has no debt, so there is nothing to relever. Two arguments pull in opposite directions and I take neither: (a) about 38% of Zoom's market value is cash, securities and the Anthropic stake, and cash has a beta near zero, so the OPERATING business is arguably riskier than 1.03 (stripping out the cash alone gives ~1.4, which would cut the value by ~$9.15/share); (b) the window still contains the 2021-22 post-pandemic collapse, and a mature subscription business at 40% non-GAAP margins could argue for ~0.85 (+$6.40/share). Gives a 10.4% cost of equity - well above Dropbox's 8.4% WACC, which is the main reason this model values Zoom's cash flows at a lower multiple.
Terminal growthESTIMATEAssumption — house default: House default 2.5%, roughly long-run nominal GDP. Zoom exits the forecast at 3.5% revenue growth, so 2.5% is a modest step down rather than a cliff; Online (~38% of revenue) is already flat, which argues against anything higher. Well below the 10.41% WACC. 2.0% costs ~$2.15/share; 3.0% adds ~$2.45.	2.5%	ESTIMATEAssumption — house default: House default 2.5%, roughly long-run nominal GDP. Zoom exits the forecast at 3.5% revenue growth, so 2.5% is a modest step down rather than a cliff; Online (~38% of revenue) is already flat, which argues against anything higher. Well below the 10.41% WACC. 2.0% costs ~$2.15/share; 3.0% adds ~$2.45.
Diluted sharesZoom Q2 FY2027 results release, 8-K Ex-99.1 (accession 0001585521-26-000119, filed 2026-08-25): Q2 FY2027 weighted-average diluted shares 299,746,342 (Q2 FY2026: 308.2M; FY2026: 307.3M). Buybacks: 7.9M shares retired in H1 FY2027 ($722.2M cash), 44.2M cumulative under the program, ~$1.3B of authorization left at 2026-07-31. Shares outstanding on the 10-Q cover were 291.8M; the ~8M gap is unvested RSUs and options counted under the treasury method. Management's FY2027 guide uses ~301M weighted shares before further buybacks. Using 291.8M would add ~$2.25/share; the diluted figure is the conservative choice. Q3 buybacks after 2026-07-31 are reflected in neither cash nor shares, so the two stay consistent.	300M	Zoom Q2 FY2027 results release, 8-K Ex-99.1 (accession 0001585521-26-000119, filed 2026-08-25): Q2 FY2027 weighted-average diluted shares 299,746,342 (Q2 FY2026: 308.2M; FY2026: 307.3M). Buybacks: 7.9M shares retired in H1 FY2027 ($722.2M cash), 44.2M cumulative under the program, ~$1.3B of authorization left at 2026-07-31. Shares outstanding on the 10-Q cover were 291.8M; the ~8M gap is unvested RSUs and options counted under the treasury method. Management's FY2027 guide uses ~301M weighted shares before further buybacks. Using 291.8M would add ~$2.25/share; the diluted figure is the conservative choice. Q3 buybacks after 2026-07-31 are reflected in neither cash nor shares, so the two stay consistent.
Market priceBackup price feed · as of 2026-10-19 12:54 UTC	$94.19	Backup price feed · as of 2026-10-19 12:54 UTC

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What does Zoom Communications, Inc. do?

What does it do?

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. It operates in the Software - Application industry (Technology sector), headquartered in United States. The company employs roughly 7,438 people.

How does it make money?

The business turns $5.0B in annual revenue into profit. Out of every $100 of sales, about $25 is left as operating profit (operating margin of 24.6%), after a 78% gross margin on the products/services it sells. After all costs, taxes and interest, 65.2% of revenue becomes bottom-line net profit.

Is it financially healthy?

Financially it looks solid: carries modest debt (0.5× equity), comfortably covers its short-term bills (3.8× current ratio), and is currently profitable.

Who at ZM filed insider trades?

Recent insider filings for Zoom Communications, Inc.
Date	Insider	Relationship	What happened	Value	Filing
13 Oct 2026	McGarry Kimberly J	Chief Accounting Officer	Shares withheld (tax)	$847,961.10	Form 4 for McGarry Kimberly J (opens sec.gov in a new tab)
12 Oct 2026	Chang Michelle	Chief Financial Officer	Open-market sale	$270,552.04	Form 4 for Chang Michelle (opens sec.gov in a new tab)
12 Oct 2026	Chang Michelle	Chief Financial Officer	Open-market sale	$573,788.53	Form 4 for Chang Michelle (opens sec.gov in a new tab)
12 Oct 2026	Sankarlingam Velchamy	Pres. of Engineering & Product	Open-market sale	$231,388.09	Form 4 for Sankarlingam Velchamy (opens sec.gov in a new tab)
12 Oct 2026	Sankarlingam Velchamy	Pres. of Engineering & Product	Open-market sale	$527,486.84	Form 4 for Sankarlingam Velchamy (opens sec.gov in a new tab)
9 Oct 2026	McGarry Kimberly J	Chief Accounting Officer	Option exercise	—	Form 4 for McGarry Kimberly J (opens sec.gov in a new tab)

A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans

Common questions

What is ZM's intrinsic value?
TickerWorth's valuation lenses put Zoom Communications, Inc. (ZM) between $49.17 and $156.63 per share, versus a market price of $94.19. They disagree too widely for us to state a single fair value, so we publish the range.
Is ZM overvalued or undervalued?
At $94.19 the price sits inside a range too wide to call either way. We don't call ZM overvalued or undervalued from a range this wide. This is an educational estimate, not advice.
What discount rate is used for ZM?
A WACC of 10.4% and a terminal growth rate of 2.5%.
Is Zoom Communications stock undervalued?
TickerWorth's fair-value range for Zoom Communications, Inc. (ZM) is $49.17 – $156.63 against a market price of $94.19. Too wide to call. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.
Zoom Communications (ZM) DCF valuation and fair value
Our fair-value range for Zoom Communications, Inc. (ZM) is $49.17 – $156.63, built on a 10.4% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Zoom Communications stock?
Today's price implies revenue growth of 8.1% a year for 5 years; our model assumes 4.0% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $94.19. A model estimate, not investment advice.
Zoom Communications (ZM) insider trading
The most recent insider filing (SEC Form 4) for Zoom Communications, Inc. (ZM): McGarry Kimberly J, Chief Accounting Officer, shares withheld (tax) on 2026-10-13. The latest filings are listed on this page. A disclosure, not a signal to trade.