* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Zoom Video Communications's PEG Ratio or its related term are showing as below:
WBO:ZOOM'
s PEG Ratio Range Over the Past 10 Years
Min: 0.14 Med: 0.16 Max: 0.19
Current: 0.14
During the past 8 years, Zoom Video Communications's highest PEG Ratio was 0.19. The lowest was 0.14. And the median was 0.16.
WBO:ZOOM's PEG Ratio is ranked better than 98.83% of 772
companies
in the Software industry
Industry Median: 1.59
vs WBO:ZOOM: 0.14
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Zoom Video Communications PEG Ratio Historical Data
* 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.
Competitive Comparison of Zoom Video Communications's PEG Ratio
For the Software - Application subindustry, Zoom Video Communications's PEG Ratio, along with its competitors' market caps and PEG 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's PEG Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Zoom Video Communications's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Zoom Video Communications's PEG Ratio falls into.
Zoom Video Communications PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Zoom Video Communications (WBO:ZOOM) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Zoom Video Communications PEG Ratio Related Terms
Thank you for viewing the detailed overview of Zoom Video Communications's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Zoom Video Communications (WBO:ZOOM) 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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