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Zoom Video Communications (Zoom Video Communications) EV-to-FCF

: 7.84 (As of Today)
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EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Zoom Video Communications's Enterprise Value is $11,543 Mil. Zoom Video Communications's Free Cash Flow for the trailing twelve months (TTM) ended in Jan. 2024 was $1,472 Mil. Therefore, Zoom Video Communications's EV-to-FCF for today is 7.84.

The historical rank and industry rank for Zoom Video Communications's EV-to-FCF or its related term are showing as below:

ZM' s EV-to-FCF Range Over the Past 10 Years
Min: 7.84   Med: 45.9   Max: 810.18
Current: 7.84

During the past 8 years, the highest EV-to-FCF of Zoom Video Communications was 810.18. The lowest was 7.84. And the median was 45.90.

ZM's EV-to-FCF is ranked better than
81.13% of 1516 companies
in the Software industry
Industry Median: 21.53 vs ZM: 7.84

EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.

As of today (2024-04-19), Zoom Video Communications's stock price is $59.09. Zoom Video Communications's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jan. 2024 was $2.040. Therefore, Zoom Video Communications's PE Ratio for today is 28.97.


Zoom Video Communications EV-to-FCF Historical Data

The historical data trend for Zoom Video Communications's EV-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Zoom Video Communications Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
EV-to-FCF
Premium Member Only Premium Member Only Premium Member Only 180.21 75.85 27.97 14.23 8.82

Zoom Video Communications Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
EV-to-FCF Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.23 11.89 14.23 8.96 8.82

Competitive Comparison

For the Software - Application subindustry, Zoom Video Communications's EV-to-FCF, along with its competitors' market caps and EV-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Zoom Video Communications EV-to-FCF Distribution

For the Software industry and Technology sector, Zoom Video Communications's EV-to-FCF distribution charts can be found below:

* The bar in red indicates where Zoom Video Communications's EV-to-FCF falls into.



Zoom Video Communications EV-to-FCF Calculation

Zoom Video Communications's EV-to-FCF for today is calculated as:

EV-to-FCF=Enterprise Value (Today)/Free Cash Flow (TTM)
=11542.519/1471.883
=7.84

Zoom Video Communications's current Enterprise Value is $11,543 Mil.
Zoom Video Communications's Free Cash Flow for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,472 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Zoom Video Communications  (NAS:ZM) EV-to-FCF Explanation

EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.

Zoom Video Communications's PE Ratio for today is calculated as:

PE Ratio=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=59.09/2.040
=28.97

Zoom Video Communications's share price for today is $59.09.
Zoom Video Communications's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.040.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.


Zoom Video Communications EV-to-FCF Related Terms

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Zoom Video Communications (Zoom Video Communications) Business Description

Address
55 Almaden Boulevard, 6th Floor, San Jose, CA, USA, 95113
Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.
Executives
Aparna Bawa officer: General Counsel C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Shane Crehan officer: Chief Accounting Officer C/O EVENTBRITE, INC., 155 5TH STREET, 7TH FLOOR, SAN FRANCISCO CA 94103
Velchamy Sankarlingam officer: Pres. of Engineering & Product C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Eric S. Yuan director, 10 percent owner, officer: Chief Executive Officer C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Santiago Subotovsky director C/O EMERGENCE CAPITAL PARTNERS, 160 BOVENT ROAD SUITE 300, SAN MATEO CA 94402
Kelly Steckelberg officer: Chief Financial Officer C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Jonathan Chadwick director 3401 HILLVIEW AVENUE, PALO ALTO CA 94304
Gregory Tomb officer: President 650 CASTRO ST, SUITE 400, MOUNTAIN VIEW CA 94041
Cindy L Hoots director C/O ZOOM VIDEO COMMUNICATIONS, INC, 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
William R Mcdermott director 2225 LAWSON LANE, SANTA CLARA CA 95054
Ryan Azus officer: Chief Revenue Officer C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Carl M. Eschenbach director, 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL ROAD, SUITE 101, PALO ALTO CA 94025
Janine Pelosi officer: Chief Marketing Officer C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Kimberly Hammonds director 100 EAST DAVIE STREET, RALEIGH NC 27601
Bart Swanson director C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113