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Zoom Video Communications (Zoom Video Communications) PB Ratio

: 2.30 (As of Today)
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The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2024-04-18), Zoom Video Communications's share price is $59.93. Zoom Video Communications's Book Value per Share for the quarter that ended in Jan. 2024 was $26.07. Hence, Zoom Video Communications's PB Ratio of today is 2.30.

Good Sign:

Zoom Video Communications Inc stock PB Ratio (=2.27) is close to 5-year low of 2.27

The historical rank and industry rank for Zoom Video Communications's PB Ratio or its related term are showing as below:

ZM' s PB Ratio Range Over the Past 10 Years
Min: 2.27   Med: 16.62   Max: 132.59
Current: 2.3

During the past 8 years, Zoom Video Communications's highest PB Ratio was 132.59. The lowest was 2.27. And the median was 16.62.

ZM's PB Ratio is ranked better than
56% of 2577 companies
in the Software industry
Industry Median: 2.56 vs ZM: 2.30

During the past 12 months, Zoom Video Communications's average Book Value Per Share Growth Rate was 23.40% per year. During the past 3 years, the average Book Value Per Share Growth Rate was 25.60% per year.

During the past 8 years, the highest 3-Year average Book Value Per Share Growth Rate of Zoom Video Communications was 91.80% per year. The lowest was 25.60% per year. And the median was 58.70% per year.

Back to Basics: PB Ratio


Zoom Video Communications PB Ratio Historical Data

The historical data trend for Zoom Video Communications's PB 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.

* Premium members only.

Zoom Video Communications Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
PB Ratio
Premium Member Only Premium Member Only Premium Member Only 25.50 28.29 7.98 3.55 2.48

Zoom Video Communications Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
PB Ratio 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 Premium Member Only Premium Member Only Premium Member Only 3.55 2.80 3.15 2.46 2.48

Competitive Comparison

For the Software - Application subindustry, Zoom Video Communications's PB Ratio, along with its competitors' market caps and PB 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 Video Communications PB Ratio Distribution

For the Software industry and Technology sector, Zoom Video Communications's PB Ratio distribution charts can be found below:

* The bar in red indicates where Zoom Video Communications's PB Ratio falls into.



Zoom Video Communications PB Ratio Calculation

The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.

Zoom Video Communications's PB Ratio for today is calculated as follows:

PB Ratio=Share Price/Book Value per Share (Q: Jan. 2024)
=59.93/26.074
=2.30

* 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.

It can also be calculated from the numbers for the whole company:

A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.


Zoom Video Communications  (NAS:ZM) PB Ratio Explanation

Unlike valuation ratios relative to the earning power such as PE Ratio, PE Ratio without NRI, PS Ratio, Price-to-Operating-Cash-Flow , or Price-to-Free-Cash-Flow, the PB Ratio measures the valuation of the stock relative to the underlying asset of the company.

The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.


Be Aware

Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.


Zoom Video Communications PB Ratio Related Terms

Thank you for viewing the detailed overview of Zoom Video Communications's PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Zoom Video Communications (Zoom Video Communications) Business Description

Address
55 Almaden Boulevard, 6th Floor, San Jose, CA, USA, 95113
Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.
Executives
Aparna Bawa officer: General Counsel C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Shane Crehan officer: Chief Accounting Officer C/O EVENTBRITE, INC., 155 5TH STREET, 7TH FLOOR, SAN FRANCISCO CA 94103
Velchamy Sankarlingam officer: Pres. of Engineering & Product C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Eric S. Yuan director, 10 percent owner, officer: Chief Executive Officer C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Santiago Subotovsky director C/O EMERGENCE CAPITAL PARTNERS, 160 BOVENT ROAD SUITE 300, SAN MATEO CA 94402
Kelly Steckelberg officer: Chief Financial Officer C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Jonathan Chadwick director 3401 HILLVIEW AVENUE, PALO ALTO CA 94304
Gregory Tomb officer: President 650 CASTRO ST, SUITE 400, MOUNTAIN VIEW CA 94041
Cindy L Hoots director C/O ZOOM VIDEO COMMUNICATIONS, INC, 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
William R Mcdermott director 2225 LAWSON LANE, SANTA CLARA CA 95054
Ryan Azus officer: Chief Revenue Officer C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Carl M. Eschenbach director, 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL ROAD, SUITE 101, PALO ALTO CA 94025
Janine Pelosi officer: Chief Marketing Officer C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Kimberly Hammonds director 100 EAST DAVIE STREET, RALEIGH NC 27601
Bart Swanson director C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113