FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Zoom Communications FCF Yield % Related Terms
Zoom Communications FCF Yield % Historical Data
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The historical data trend for Zoom Communications's FCF Yield % 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, TEAM, ROP: FCF Yield % Comparison
For the Software - Application subindustry, Zoom Communications's FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Software Industry
For the Software industry and Technology sector, Zoom Communications's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Zoom Communications's FCF Yield % 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.
Zoom Communications (XSWX:ZM) has a FCF Yield % of 7.73 as of Jun. 27, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Zoom Communications and its competitors. This is 50% above median its historical median of 5.15. Over the past decade, Zoom Communications' FCF Yield % has ranged from 0.12 to 9.72. According to the industry distribution chart, Zoom Communications ranks #595 out of 2868 companies in the Software industry, placing it in the top 20.7%.
Is Zoom Communications' FCF Yield % too high?
Zoom Communications' current FCF Yield % of 7.73 is 50% above median its 10-year median of 5.15. Over the past 10 years, this metric has ranged from a low of 0.12 to a high of 9.72. The Software industry median FCF Yield % is 0.89. Zoom Communications' value of 7.73 is 773.4% above this industry median. Based on the distribution chart, Zoom Communications ranks #595 out of 2868 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 85/100, reflecting its overall financial health beyond just this single metric.
How does Zoom Communications' FCF Yield % compare to FICO and TEAM?
According to the Software industry distribution chart, Zoom Communications ranks #595 out of 2868 companies for FCF Yield %. This places Zoom Communications in the top 21% of its industry — outperforming the majority of peers. The industry median FCF Yield % is 0.89. Zoom Communications' value of 7.73 is 773.4% above this benchmark. Historically, Zoom Communications' own FCF Yield % has ranged from 0.12 to 9.72 over the past decade. While the company's 10-year median is 5.15 vs. the industry median of 0.89, 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 FCF Yield % for a Software company?
The median FCF Yield % among Software companies is 0.89, based on 2,868 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zoom Communications's current FCF Yield % of 7.73 is 773.4% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Zoom Communications and its competitors. For the Software industry, the median FCF Yield % is 0.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zoom Communications's current FCF Yield % is 7.73, which is 50% above median its own 10-year median of 5.15. 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 FCF Yield % of 7.73. The stock's GF Value™ is CHF63.80, compared to a current price of CHF68.47 — trading 7.3% above its estimated fair value. The current FCF Yield % is 7.73, which is 50% above median its 10-year median of 5.15 and 773.4% above the Software industry median of 0.89. 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 FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Zoom Communications (XSWX:ZM), the current FCF Yield % is 7.73 as of Jun. 27, 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 CHF68.47 is trading 7.3% above its estimated GF Value™ of CHF63.80.
Key valuation signals for XSWX:ZM:
FCF Yield %: 7.73 (50% above median its 10-year median of 5.15)
GF Value™: CHF63.80 vs. price of CHF68.47 (7.3% above fair value)
Industry Position: 773.4% above the Software median (#595 of 2868)
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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