ZM (Zoom Communications) Debt-to-EBITDA : (As of Jul. 2026)

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ZM Zoom Communications Inc ZM
87 GF Score
Price $90.90
GF Value $85.55
Valuation Fairly Valued
! 4 Warning Signs
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What is Zoom Communications Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Zoom Communications's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jul. 2026 was $27 Mil. Zoom Communications's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jul. 2026 was $33 Mil. Zoom Communications's annualized EBITDA for the quarter that ended in Jul. 2026 was $8,109 Mil. Zoom Communications's annualized Debt-to-EBITDA for the quarter that ended in Jul. 2026 was 0.01.

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:

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.

ZM's Debt-to-EBITDA is ranked better than
93.11% of 1727 companies
in the Software industry
Industry Median: 0.99 vs ZM: 0.05

Zoom Communications  (NAS:ZM) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

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.

Zoom Communications Debt-to-EBITDA Chart

Zoom Communications Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
Debt-to-EBITDA
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Zoom Communications Quarterly Data
Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26 Jul26
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ZM vs BSP, FICO, SSNC: 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.


ZM
87GF Score
Zoom Communications Inc ZM
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zoom Communications Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Zoom Communications's Debt-to-EBITDA for the fiscal year that ended in Jan. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(27.765 + 30.71) / 2555.116
=0.02

Zoom Communications's annualized Debt-to-EBITDA for the quarter that ended in Jul. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(26.932 + 33.34) / 8109.192
=0.01

* 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 (Jul. 2026) EBITDA data.

Is Zoom Communications (ZM) Overvalued in 2026?

Based on GuruFocus' analysis, Zoom Communications stock appears to be overvalued. The current stock price of $90.90 is trading 6.3% above its estimated GF Value™ of $85.55. GuruFocus considers Zoom Communications to be Fairly Valued.

Key valuation signals for ZM:

  • Debt-to-EBITDA:
  • GF Value™: $85.55 vs. price of $90.90 (6.3% above fair value)
  • GF Score™: 87/100 with 4 warning signs

No single metric tells the full story. See the ZM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Zoom Communications Business Description

Address 55 Almaden Boulevard, 6th Floor, San Jose, CA, USA, 95113
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.
87GF Score

Get the complete analysis for ZM

Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$90.90
Price
$85.55
GF Value