Zoom Video Communications Inc (ZM) is a leading software-application business based in the US. In the week up to 19 October Zoom shares surged 8.18% to a closing position of $276.4. However, over the last 12 months, Zoom's share price has fallen by an alarming 45.73% from $511.52. Zoom is listed on the NASDAQ and employs 5,725 staff. All prices are listed in US Dollars.
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Since the stock market crash that started in February 2020, Zoom's share price has had significant positive movement.
Its last market close was $277.58, which is 63.34% up on its pre-crash value of $101.76 and 258.12% up on the lowest point reached during the March 2020 crash when the shares fell as low as $77.51.
If you had bought $1,000 worth of Zoom shares at the start of February 2020, those shares would have been worth $1,820.58 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth $3,167.19.
| Open | $283.51 |
|---|---|
| High | $286.66 |
| Low | $276.12 |
| Close | $277.58 |
| Previous close | $274.78 |
| Change | $2.8 |
| Change % | 1.019% |
| Volume | 3,175,619 |
| 52-week range | $250.11 - $588.84 |
|---|---|
| 50-day moving average | $279.4309 |
| 200-day moving average | $329.3966 |
| Wall St. target price | $374.4 |
| PE ratio | 80.3864 |
| Dividend yield | N/A (0%) |
| Earnings per share (TTM) | $3.313 |
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£0 | £50 | £5.06 £1,013.78 total |
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£0 | £1 | £22.05 £1,030.78 total |
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£9.99 per month | No minimum | £23.14 £1,031.86 total |
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£36 per year | £20 | £22.12 £1,030.85 total |
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The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Valuing a stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of overall performance. However, analysts commonly use some key metrics to help gauge value.
Zoom's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 80x. In other words, Zoom shares trade at around 80x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Zoom's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.6499. Higher PEG ratios such as this can be interpreted as meaning the shares offer worse value given the current rate of growth.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Zoom's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Zoom's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping $1.1 billion (£0.0 million).
The EBITDA is a measure of a Zoom's overall financial performance and is widely used to measure a its profitability.
| Revenue TTM | $3.6 billion |
|---|---|
| Operating margin TTM | 28.76% |
| Gross profit TTM | $1.8 billion |
| Return on assets TTM | 14.32% |
| Return on equity TTM | 34.28% |
| Profit margin | 27.6% |
| Book value | $15.681 |
| Market capitalisation | $79.1 billion |
TTM: trailing 12 months
There are currently 11.0 million Zoom shares held short by investors – that's known as the "short interest". This figure is 11.2% down from 12.4 million last month.
There are a few different ways that this level of interest in shorting Zoom shares can be evaluated.
Zoom's "short interest ratio" (SIR) is the quantity of Zoom shares currently shorted divided by the average quantity of Zoom shares traded daily (recently around 6.6 million). Zoom's SIR currently stands at 1.67. In other words for every 100,000 Zoom shares traded daily on the market, roughly 1670 shares are currently held short.
However Zoom's short interest can also be evaluated against the total number of Zoom shares, or, against the total number of tradable Zoom shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Zoom's short interest could be expressed as 0.04% of the outstanding shares (for every 100,000 Zoom shares in existence, roughly 40 shares are currently held short) or 0.0506% of the tradable shares (for every 100,000 tradable Zoom shares, roughly 51 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Zoom.
Find out more about how you can short Zoom stock.
We're not expecting Zoom to pay a dividend over the next 12 months. Typically it's companies that have been around for longer that pay dividends (Zoom had its IPO on 18 April 2019). However, you can browse other dividend-paying shares in our guide.
Over the last 12 months, Zoom's shares have ranged in value from as little as $250.11 up to $588.84. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Zoom's is -1.3258. This would suggest that Zoom's shares have been inversely-correlated to the average (for this exchange) – so when the broader market trended up or down, Zoom has bucked the trend.
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