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Zoom CommunicationsXSWX:ZM -0.45%86 3-Year Book Growth Rate is 16.30% as of Jul. 2026, which is 22% below its 10-year median of 20.95. GuruFocus rates XSWX:ZM with a GF Score™ of 86/100 and a GF Value™ of CHF69.99. The stock has 4 warning signs investors should review. Among 2,488 Software companies, Zoom Communications ranks better than 73.67% on this metric.
During the past 12 months, Zoom Communications's average Book Value per Share Growth Rate was 29.70% per year.
During the past 3 years, the average Book Value per Share Growth Rate was 16.30% per year.
During the past 5 years, the average Book Value per Share Growth Rate was 19.00% per year.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Book Value per Share growth rate.
During the past 10 years, the highest 3-Year average Book Value per Share Growth Rate of Zoom Communications was 91.80% per year. The lowest was 14.80% per year. And the median was 20.95% per year.
Zoom Communications (XSWX:ZM) 3-Year Book Growth Rate Explanation
Book Value per Share is the ratio of equity available to common shareholders divided by the shares outstanding. Book value per share effectively indicates a firm's net asset value on a per-share basis. It can be used by investors to gauge whether a stock price is undervalued by comparing it to the firm's market value per share. Theoretically, it is what the shareholders will receive if the company is liquidated.
Zoom Communications 3-Year Book Growth Rate Related Terms
XSWX:ZM vs BSP, FICO, SSNC: 3-Year Book Growth Rate Comparison
For the Software - Application subindustry, Zoom Communications's 3-Year Book Growth Rate, along with its competitors' market caps and 3-Year Book Growth Rate 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 Communications 3-Year Book Growth Rate vs Software Industry
For the Software industry and Technology sector, Zoom Communications's 3-Year Book Growth Rate distribution charts can be found below:
* The bar in red indicates where Zoom Communications's 3-Year Book Growth Rate falls into.
Zoom Communications 3-Year Book Growth Rate Calculation
This is the 3-year average growth rate of Book Value per Share. The growth rate is calculated using exponential compounding based on the latest four year annual data.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Book Value per Share growth rate.
What does a 3-Year Book Growth Rate of 16.30% mean?
Zoom Communications (XSWX:ZM) has a 3-Year Book Growth Rate of 16.30% as of Jul. 2026. 3-Year Book Growth Rate is the 3-year average growth rate of Book Value per Share. View historical data for Zoom Communications and its competitors. This is 22% below median its historical median of 20.95. Over the past decade, Zoom Communications' 3-Year Book Growth Rate has ranged from 14.80 to 91.80. According to the industry distribution chart, Zoom Communications ranks #655 out of 2488 companies in the Software industry, placing it in the top 26.3%.
Is Zoom Communications' 3-Year Book Growth Rate too high?
Zoom Communications' current 3-Year Book Growth Rate of 16.30% is 22% below median its 10-year median of 20.95. Over the past 10 years, this metric has ranged from a low of 14.80 to a high of 91.80. The Software industry median 3-Year Book Growth Rate is 5.40. Zoom Communications' value of 16.30% is 201.9% above this industry median. Based on the distribution chart, Zoom Communications ranks #655 out of 2488 companies in the Software industry, which is above the industry midpoint. Overall, Zoom Communications has a GF Score™ of 86/100, reflecting its overall financial health beyond just this single metric.
How does Zoom Communications' 3-Year Book Growth Rate compare to BSP and FICO?
According to the Software industry distribution chart, Zoom Communications ranks #655 out of 2488 companies for 3-Year Book Growth Rate. This puts Zoom Communications in the upper half of its industry. The industry median 3-Year Book Growth Rate is 5.40. Zoom Communications' value of 16.30% is 201.9% above this benchmark. Historically, Zoom Communications' own 3-Year Book Growth Rate has ranged from 14.80 to 91.80 over the past decade. While the company's 10-year median is 20.95 vs. the industry median of 5.40, Zoom Communications has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year Book Growth Rate for a Software company?
The median 3-Year Book Growth Rate among Software companies is 5.40, based on 2,488 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year Book Growth Rate significantly above this median, while those in the bottom quartile fall well below. However, 3-Year Book Growth Rate should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zoom Communications's current 3-Year Book Growth Rate of 16.30% is 201.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year Book Growth Rate mean?
A high 3-Year Book Growth Rate can signal that a stock is expensive relative to its fundamentals. 3-Year Book Growth Rate is the 3-year average growth rate of Book Value per Share. View historical data for Zoom Communications and its competitors. For the Software industry, the median 3-Year Book Growth Rate is 5.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zoom Communications's current 3-Year Book Growth Rate is 16.30%, which is 22% below median its own 10-year median of 20.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zoom Communications stock overvalued right now?
Zoom Communications (XSWX:ZM) has a current 3-Year Book Growth Rate of 16.30%. The stock's GF Value™ is CHF69.99, compared to a current price of CHF78.22 — trading 11.8% above its estimated fair value. The current 3-Year Book Growth Rate is 16.30%, which is 22% below median its 10-year median of 20.95 and 201.9% above the Software industry median of 5.40. Zoom Communications' overall GF Score™ is 86/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year Book Growth Rate calculated?
3-Year Book Growth Rate is calculated from a company's financial statements. For Zoom Communications (XSWX:ZM), the current 3-Year Book Growth Rate is 16.30% as of Jul. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Zoom Communications (XSWX:ZM) Overvalued in 2026?
Based on GuruFocus' analysis, Zoom Communications stock appears to be overvalued.
The current stock price of CHF78.22 is trading 11.8% above its estimated GF Value™ of CHF69.99.
Key valuation signals for XSWX:ZM:
3-Year Book Growth Rate: 16.30% (22% below median its 10-year median of 20.95)
GF Value™: CHF69.99 vs. price of CHF78.22 (11.8% above fair value)
Industry Position: 201.9% above the Software median (#655 of 2488)
No single metric tells the full story. See the XSWX:ZM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zoom Communications provides a video-first communications platform that connects people through frictionless video, voice, chat, and content sharing. The company's cloud-native platform enables video experiences and connects users across various devices and locations in a single meeting. Zoom has launched a variety of communications-related solutions, including Zoom Phone and Zoom Contact Center. The firm was founded in 2011 and serves companies of all sizes from all industries around the world.
86GF Score
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