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 (2023-10-01), Zoom Video Communications's share price is $69.947. Zoom Video Communications's Book Value per Share for the quarter that ended in Jul. 2023 was $23.27. Hence, Zoom Video Communications's PB Ratio of today is 3.01.
Good Sign:
Zoom Video Communications Inc stock PB Ratio (=3.01) is close to 5-year low of 2.85
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: 2.85 Med: 22.65 Max: 132.59
Current: 3.01
During the past 7 years, Zoom Video Communications's highest PB Ratio was 132.59. The lowest was 2.85. And the median was 22.65.
ZM's PB Ratio is ranked worse than 54.56% of 2608
companies
in the Software industry
Industry Median: 2.72
vs ZM: 3.01
During the past 12 months, Zoom Video Communications's average Book Value Per Share Growth Rate was 15.80% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 91.80% per year.
During the past 7 years, the highest 3-Year average Book Value Per Share Growth Rate of Zoom Video Communications was 210.00% per year. The lowest was 91.80% per year. And the median was 150.90% 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
PB Ratio
-
25.50
28.29
7.98
3.55
Zoom Video Communications Quarterly Data
Oct18
Jan19
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
Jul22
Oct22
Jan23
Apr23
Jul23
PB Ratio
5.17
4.24
3.55
2.80
3.15
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 in comparison to its industry or sector. The grey bar indicates the PB Ratio's extreme value range as defined by GuruFocus.
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:
* 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
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 (NAS:ZM) Business Description
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.
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