Zoom Communications (XSWX:ZM) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Zoom Communications Forward PE Ratio Related Terms
Zoom Communications Forward PE Ratio Historical Data
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The historical data trend for Zoom Communications's Forward PE Ratio 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 Forward PE Ratio Chart
Zoom Communications Annual Data
Trend
2026-01
Forward PE Ratio
14.69
Zoom Communications Quarterly Data
2026-01
2026-04
Forward PE Ratio
14.69
15.37
XSWX:ZM vs FICO, MSTR, WDAY: Forward PE Ratio Comparison
For the Software - Application subindustry, Zoom Communications's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Software Industry
For the Software industry and Technology sector, Zoom Communications's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Zoom Communications's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Zoom Communications (XSWX:ZM) has a Forward PE Ratio of 14.71 as of Jul. 12, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Zoom Communications and its competitors. According to the industry distribution chart, Zoom Communications ranks #452 out of 1171 companies in the Software industry, placing it in the top 38.6%.
Is Zoom Communications' Forward PE Ratio too high?
Zoom Communications' current Forward PE Ratio is 14.71. The Software industry median Forward PE Ratio is 18.62. Zoom Communications' value of 14.71 is 21% below this industry median. Based on the distribution chart, Zoom Communications ranks #452 out of 1171 companies in the Software industry, which is above 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' Forward PE Ratio compare to FICO and MSTR?
According to the Software industry distribution chart, Zoom Communications ranks #452 out of 1171 companies for Forward PE Ratio. This puts Zoom Communications in the upper half of its industry. The industry median Forward PE Ratio is 18.62. Zoom Communications' value of 14.71 is 21% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Software company?
The median Forward PE Ratio among Software companies is 18.62, based on 1,171 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zoom Communications's current Forward PE Ratio of 14.71 is 21% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Zoom Communications and its competitors. For the Software industry, the median Forward PE Ratio is 18.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zoom Communications's current Forward PE Ratio is 14.71. 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 Forward PE Ratio of 14.71. The stock's GF Value™ is CHF64.81, compared to a current price of CHF72.02 — trading 11.1% above its estimated fair value. The current Forward PE Ratio is 14.71 and 21% below the Software industry median of 18.62. 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 Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Zoom Communications (XSWX:ZM), the current Forward PE Ratio is 14.71 as of Jul. 12, 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 CHF72.02 is trading 11.1% above its estimated GF Value™ of CHF64.81.
Key valuation signals for XSWX:ZM:
Forward PE Ratio: 14.71
GF Value™: CHF64.81 vs. price of CHF72.02 (11.1% above fair value)
Industry Position: 21% below the Software median (#452 of 1171)
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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Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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