Zoom CommunicationsLTS:0A1O 85 Cyclically Adjusted Price-to-FCF is 28.91 as of Jun. 24, 2026, which is 20% above its 10-year median of 24.19. GuruFocus rates LTS:0A1O with a GF Score™ of 85/100 and a GF Value™ of $81.61 (Fairly Valued). The stock has 3 warning signs investors should review. Among 812 Software companies, Zoom Communications ranks worse than 52.96% on this metric.
The historical rank and industry rank for Zoom Communications's Cyclically Adjusted Price-to-FCF or its related term are showing as below:
LTS:0A1O'
s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 22.14 Med: 24.19 Max: 27.72
Current: 25.88
During the past 10 years, Zoom Communications's highest Cyclically Adjusted Price-to-FCF was 27.72. The lowest was 22.14. And the median was 24.19.
LTS:0A1O's Cyclically Adjusted Price-to-FCF is ranked worse than 52.96% of 812
companies
in the Software industry
Industry Median: 22.87
vs LTS:0A1O: 25.88
The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.
Zoom Communications's adjusted free cash flow per share data of for the fiscal year that ended in Jan26 was $6.259. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $3.03 for the trailing ten years ended in Jan26.
Shiller PE for Stocks: The True Measure of Stock Valuation
Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.
Zoom Communications Cyclically Adjusted Price-to-FCF Related Terms
Zoom Communications Cyclically Adjusted Price-to-FCF Historical Data
* Premium members only.
The historical data trend for Zoom Communications's Cyclically Adjusted Price-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.
LTS:0A1O vs FICO, TEAM, ROP: Cyclically Adjusted Price-to-FCF Comparison
For the Software - Application subindustry, Zoom Communications's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-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 Communications Cyclically Adjusted Price-to-FCF vs Software Industry
For the Software industry and Technology sector, Zoom Communications's Cyclically Adjusted Price-to-FCF distribution charts can be found below:
* The bar in red indicates where Zoom Communications's Cyclically Adjusted Price-to-FCF falls into.
Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.
Zoom Communications's Cyclically Adjusted Price-to-FCF for today is calculated as
* 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.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
What does a Cyclically Adjusted Price-to-FCF of 28.91 mean?
Zoom Communications (LTS:0A1O) has a Cyclically Adjusted Price-to-FCF of 28.91 as of Jun. 24, 2026. Cyclically Adjusted Price-to-FCF Ratio is the ratio of share price to a company's inflation-adjusted FCF per share over a 10-year period. View historical data on Zoom Communications and its competitors. This is 20% above median its historical median of 24.19. Over the past decade, Zoom Communications' Cyclically Adjusted Price-to-FCF has ranged from 22.14 to 27.72. According to the industry distribution chart, Zoom Communications ranks #430 out of 812 companies in the Software industry, placing it in the top 53%.
Is Zoom Communications' Cyclically Adjusted Price-to-FCF too high?
Zoom Communications' current Cyclically Adjusted Price-to-FCF of 28.91 is 20% above median its 10-year median of 24.19. Over the past 10 years, this metric has ranged from a low of 22.14 to a high of 27.72. The Software industry median Cyclically Adjusted Price-to-FCF is 22.87. Zoom Communications' value of 28.91 is 26.4% above this industry median. Based on the distribution chart, Zoom Communications ranks #430 out of 812 companies in the Software industry, which is below the industry midpoint. Overall, Zoom Communications has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Zoom Communications' Cyclically Adjusted Price-to-FCF compare to FICO and TEAM?
According to the Software industry distribution chart, Zoom Communications ranks #430 out of 812 companies for Cyclically Adjusted Price-to-FCF. This places Zoom Communications in the lower half of its industry. The industry median Cyclically Adjusted Price-to-FCF is 22.87. Zoom Communications' value of 28.91 is 26.4% above this benchmark. Historically, Zoom Communications' own Cyclically Adjusted Price-to-FCF has ranged from 22.14 to 27.72 over the past decade. While the company's 10-year median is 24.19 vs. the industry median of 22.87, 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 Cyclically Adjusted Price-to-FCF for a Software company?
The median Cyclically Adjusted Price-to-FCF among Software companies is 22.87, based on 812 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted Price-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted Price-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zoom Communications's current Cyclically Adjusted Price-to-FCF of 28.91 is 26.4% 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 Cyclically Adjusted Price-to-FCF mean?
A high Cyclically Adjusted Price-to-FCF can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted Price-to-FCF Ratio is the ratio of share price to a company's inflation-adjusted FCF per share over a 10-year period. View historical data on Zoom Communications and its competitors. For the Software industry, the median Cyclically Adjusted Price-to-FCF is 22.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zoom Communications's current Cyclically Adjusted Price-to-FCF is 28.91, which is 20% above median its own 10-year median of 24.19. 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?
Based on GuruFocus' analysis, Zoom Communications (LTS:0A1O) is currently considered Fairly Valued. The stock's GF Value™ is $81.61, compared to a current price of $87.59 — trading 7.3% above its estimated fair value. The current Cyclically Adjusted Price-to-FCF is 28.91, which is 20% above median its 10-year median of 24.19 and 26.4% above the Software industry median of 22.87. Zoom Communications' overall GF Score™ is 85/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted Price-to-FCF calculated?
Cyclically Adjusted Price-to-FCF is calculated from a company's financial statements. For Zoom Communications (LTS:0A1O), the current Cyclically Adjusted Price-to-FCF is 28.91 as of Jun. 24, 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 (LTS:0A1O) Overvalued in 2026?
Based on GuruFocus' analysis, Zoom Communications stock appears to be overvalued.
The current stock price of $87.59 is trading 7.3% above its estimated GF Value™ of $81.61.
GuruFocus considers Zoom Communications to be Fairly Valued.
Key valuation signals for LTS:0A1O:
Cyclically Adjusted Price-to-FCF: 28.91 (20% above median its 10-year median of 24.19)
GF Value™: $81.61 vs. price of $87.59 (7.3% above fair value)
Industry Position: 26.4% above the Software median (#430 of 812)
No single metric tells the full story. See the LTS:0A1O 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.
85GF Score
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