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This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Zoom Communications's Enterprise Value for the quarter that ended in Apr. 2026 was CHF16,178 Mil.
Zoom Communications's EBIT for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF946 Mil.
* 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 EV-to-EBIT Related Terms
Zoom Communications EV-to-EBIT Historical Data
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The historical data trend for Zoom Communications's EV-to-EBIT 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: EV-to-EBIT Comparison
For the Software - Application subindustry, Zoom Communications's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Software Industry
For the Software industry and Technology sector, Zoom Communications's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Zoom Communications's EV-to-EBIT falls into.
Zoom Communications's current Enterprise Value is CHF14,821 Mil.
Zoom Communications's EBIT for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF946 Mil.
* 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 (XSWX:ZM) has a EV-to-EBIT of 15.66 as of Jul. 25, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Zoom Communications and its competitors. This is 69% below median its historical median of 51.08. Over the past decade, Zoom Communications' EV-to-EBIT has ranged from 13.05 to 3,598.83. According to the industry distribution chart, Zoom Communications ranks #895 out of 1769 companies in the Software industry, placing it in the top 50.6%.
Is Zoom Communications' EV-to-EBIT too high?
Zoom Communications' current EV-to-EBIT of 15.66 is 69% below median its 10-year median of 51.08. Over the past 10 years, this metric has ranged from a low of 13.05 to a high of 3,598.83. The Software industry median EV-to-EBIT is 13.96. Zoom Communications' value of 15.66 is 12.2% above this industry median. Based on the distribution chart, Zoom Communications ranks #895 out of 1769 companies in the Software industry, which is below the industry midpoint. Overall, Zoom Communications has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Zoom Communications' EV-to-EBIT compare to FICO and MSTR?
According to the Software industry distribution chart, Zoom Communications ranks #895 out of 1769 companies for EV-to-EBIT. This places Zoom Communications in the lower half of its industry. The industry median EV-to-EBIT is 13.96. Zoom Communications' value of 15.66 is 12.2% above this benchmark. Historically, Zoom Communications' own EV-to-EBIT has ranged from 13.05 to 3,598.83 over the past decade. While the company's 10-year median is 51.08 vs. the industry median of 13.96, 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 EV-to-EBIT for a Software company?
The median EV-to-EBIT among Software companies is 13.96, based on 1,769 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zoom Communications's current EV-to-EBIT of 15.66 is 12.2% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Zoom Communications and its competitors. For the Software industry, the median EV-to-EBIT is 13.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zoom Communications's current EV-to-EBIT is 15.66, which is 69% below median its own 10-year median of 51.08. 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 EV-to-EBIT of 15.66. The stock's GF Value™ is CHF66.49, compared to a current price of CHF70.86 — trading 6.6% above its estimated fair value. The current EV-to-EBIT is 15.66, which is 69% below median its 10-year median of 51.08 and 12.2% above the Software industry median of 13.96. 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 EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Zoom Communications (XSWX:ZM), the current EV-to-EBIT is 15.66 as of Jul. 25, 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 CHF70.86 is trading 6.6% above its estimated GF Value™ of CHF66.49.
Key valuation signals for XSWX:ZM:
EV-to-EBIT: 15.66 (69% below median its 10-year median of 51.08)
GF Value™: CHF66.49 vs. price of CHF70.86 (6.6% above fair value)
Industry Position: 12.2% above the Software median (#895 of 1769)
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.
85GF Score
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