Zoom Communications (XSWX:ZM) EV-to-EBITDA: 14.12 (As of Jul. 25, 2026) — 66% Below Median

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XSWX:ZM Zoom Communications Inc XSWX:ZM
85 GF Score
Price CHF70.86
GF Value CHF66.49
! 3 Warning Signs
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What is Zoom Communications EV-to-EBITDA?

Zoom Communications XSWX:ZM +2.56% 85 EV-to-EBITDA is 14.12 as of Jul. 25, 2026, which is 66% below its 10-year median of 41.93. GuruFocus rates XSWX:ZM with a GF Score™ of 85/100 and a GF Value™ of CHF66.49. The stock has 3 warning signs investors should review. Among 1,957 Software companies, Zoom Communications ranks worse than 59.43% on this metric.

EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Zoom Communications's enterprise value is CHF14,821 Mil. Zoom Communications's EBITDA for the trailing twelve months (TTM) ended in Apr. 2026 was CHF1,050 Mil. Therefore, Zoom Communications's EV-to-EBITDA for today is 14.12.

The historical rank and industry rank for Zoom Communications's EV-to-EBITDA or its related term are showing as below:

XSWX:ZM' s EV-to-EBITDA Range Over the Past 10 Years
Min: 11.67   Med: 41.93   Max: 1567.7
Current: 13.75

During the past 10 years, the highest EV-to-EBITDA of Zoom Communications was 1567.70. The lowest was 11.67. And the median was 41.93.

XSWX:ZM's EV-to-EBITDA is ranked worse than
59.43% of 1957 companies
in the Software industry
Industry Median: 10.33 vs XSWX:ZM: 13.75

EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.

As of today (2026-07-25), Zoom Communications's stock price is CHF70.86. Zoom Communications's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Apr. 2026 was CHF5.400. Therefore, Zoom Communications's PE Ratio (TTM) for today is 13.12.

The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).


Zoom Communications  (XSWX:ZM) EV-to-EBITDA Explanation

EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.

Zoom Communications's PE Ratio (TTM) for today is calculated as:

PE Ratio (TTM)=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=70.86/5.400
=13.12

Zoom Communications's share price for today is CHF70.86.
Zoom Communications's Earnings per Share (Diluted) 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 CHF5.400.

* 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.

Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).

Please read Which price ratio outperforms the enterprise multiple?


Zoom Communications EV-to-EBITDA Related Terms


Zoom Communications EV-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Zoom Communications's EV-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 EV-to-EBITDA Chart

Zoom Communications Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
EV-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 36.72 51.02 20.61 20.14 15.49

Zoom Communications Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
EV-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.06 13.11 14.61 15.49 15.76

XSWX:ZM vs FICO, MSTR, WDAY: EV-to-EBITDA Comparison

For the Software - Application subindustry, Zoom Communications's EV-to-EBITDA, along with its competitors' market caps and EV-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 EV-to-EBITDA vs Software Industry

For the Software industry and Technology sector, Zoom Communications's EV-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Zoom Communications's EV-to-EBITDA falls into.


XSWX:ZM
85GF Score
Zoom Communications Inc XSWX:ZM
EV-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zoom Communications EV-to-EBITDA Calculation

Zoom Communications's EV-to-EBITDA for today is calculated as:

EV-to-EBITDA=Enterprise Value (Today)/EBITDA (TTM)
=14820.894/1049.747
=14.12

Zoom Communications's current Enterprise Value is CHF14,821 Mil.
Zoom Communications's EBITDA 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 CHF1,050 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.

Frequently Asked Questions Learn more about EV-to-EBITDA →
What does a EV-to-EBITDA of 14.12 mean?
Zoom Communications (XSWX:ZM) has a EV-to-EBITDA of 14.12 as of Jul. 25, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Zoom Communications. This is 66% below median its historical median of 41.93. Over the past decade, Zoom Communications' EV-to-EBITDA has ranged from 11.67 to 1,567.70. According to the industry distribution chart, Zoom Communications ranks #1163 out of 1957 companies in the Software industry, placing it in the top 59.4%.
Is Zoom Communications' EV-to-EBITDA too high?
Zoom Communications' current EV-to-EBITDA of 14.12 is 66% below median its 10-year median of 41.93. Over the past 10 years, this metric has ranged from a low of 11.67 to a high of 1,567.70. The Software industry median EV-to-EBITDA is 10.33. Zoom Communications' value of 14.12 is 36.7% above this industry median. Based on the distribution chart, Zoom Communications ranks #1163 out of 1957 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-EBITDA compare to FICO and MSTR?
According to the Software industry distribution chart, Zoom Communications ranks #1163 out of 1957 companies for EV-to-EBITDA. This places Zoom Communications in the lower half of its industry. The industry median EV-to-EBITDA is 10.33. Zoom Communications' value of 14.12 is 36.7% above this benchmark. Historically, Zoom Communications' own EV-to-EBITDA has ranged from 11.67 to 1,567.70 over the past decade. While the company's 10-year median is 41.93 vs. the industry median of 10.33, 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-EBITDA for a Software company?
The median EV-to-EBITDA among Software companies is 10.33, based on 1,957 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zoom Communications's current EV-to-EBITDA of 14.12 is 36.7% 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-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Zoom Communications. For the Software industry, the median EV-to-EBITDA is 10.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zoom Communications's current EV-to-EBITDA is 14.12, which is 66% below median its own 10-year median of 41.93. 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-EBITDA of 14.12. 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-EBITDA is 14.12, which is 66% below median its 10-year median of 41.93 and 36.7% above the Software industry median of 10.33. 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-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Zoom Communications (XSWX:ZM), the current EV-to-EBITDA is 14.12 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-EBITDA: 14.12 (66% below median its 10-year median of 41.93)
  • GF Value™: CHF66.49 vs. price of CHF70.86 (6.6% above fair value)
  • GF Score™: 85/100 with 3 warning signs
  • Industry Position: 36.7% above the Software median (#1163 of 1957)

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 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.
85GF Score

Get the complete analysis for XSWX:ZM

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

CHF70.86
Price
CHF66.49
GF Value