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A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Zoom Communications's Debt-to-EBITDA or its related term are showing as below:
XSWX:ZM'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.05 Med: 0.14 Max: 2.49
Current: 0.05
During the past 10 years, the highest Debt-to-EBITDA Ratio of Zoom Communications was 2.49. The lowest was 0.05. And the median was 0.14.
XSWX:ZM's Debt-to-EBITDA is ranked better than 92.95% of 1716
companies
in the Software industry
Industry Median: 1.08
vs XSWX:ZM: 0.05
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Zoom Communications Debt-to-EBITDA Related Terms
Zoom Communications Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Zoom Communications's Debt-to-EBITDA 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.
XSWX:ZM vs FICO, MSTR, WDAY: Debt-to-EBITDA Comparison
For the Software - Application subindustry, Zoom Communications's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Zoom Communications's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Zoom Communications's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Apr. 2026) EBITDA data.
Zoom Communications (XSWX:ZM) has a Debt-to-EBITDA of 0.04 as of Apr. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Zoom Communications. This is 71% below median its historical median of 0.14. Over the past decade, Zoom Communications' Debt-to-EBITDA has ranged from 0.05 to 2.49. According to the industry distribution chart, Zoom Communications ranks #121 out of 1716 companies in the Software industry, placing it in the top 7.1%.
Is Zoom Communications' Debt-to-EBITDA too high?
Zoom Communications' current Debt-to-EBITDA of 0.04 is 71% below median its 10-year median of 0.14. Over the past 10 years, this metric has ranged from a low of 0.05 to a high of 2.49. The Software industry median Debt-to-EBITDA is 1.08. Zoom Communications' value of 0.04 is 96.3% below this industry median. Based on the distribution chart, Zoom Communications ranks #121 out of 1716 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Zoom Communications has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Zoom Communications' Debt-to-EBITDA compare to FICO and MSTR?
According to the Software industry distribution chart, Zoom Communications ranks #121 out of 1716 companies for Debt-to-EBITDA. This places Zoom Communications in the top 7% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 1.08. Zoom Communications' value of 0.04 is 96.3% below this benchmark. Historically, Zoom Communications' own Debt-to-EBITDA has ranged from 0.05 to 2.49 over the past decade. While the company's 10-year median is 0.14 vs. the industry median of 1.08, Zoom Communications has consistently been below 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 Debt-to-EBITDA for a Software company?
The median Debt-to-EBITDA among Software companies is 1.08, based on 1,716 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zoom Communications's current Debt-to-EBITDA of 0.04 is 96.3% below 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Zoom Communications. For the Software industry, the median Debt-to-EBITDA is 1.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zoom Communications's current Debt-to-EBITDA is 0.04, which is 71% below median its own 10-year median of 0.14. 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 Debt-to-EBITDA of 0.04. The stock's GF Value™ is CHF65.00, compared to a current price of CHF73.26 — trading 12.7% above its estimated fair value. The current Debt-to-EBITDA is 0.04, which is 71% below median its 10-year median of 0.14 and 96.3% below the Software industry median of 1.08. Zoom Communications' overall GF Score™ is 84/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Zoom Communications (XSWX:ZM), the current Debt-to-EBITDA is 0.04 as of Apr. 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 CHF73.26 is trading 12.7% above its estimated GF Value™ of CHF65.00.
Key valuation signals for XSWX:ZM:
Debt-to-EBITDA: 0.04 (71% below median its 10-year median of 0.14)
GF Value™: CHF65.00 vs. price of CHF73.26 (12.7% above fair value)
Industry Position: 96.3% below the Software median (#121 of 1716)
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.
84GF Score
Get the complete analysis for XSWX:ZM
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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