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Zoom Communications (LIM:ZM) PE Ratio (TTM) : 25.90 (As of Dec. 13, 2024)


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What is Zoom Communications PE Ratio (TTM)?

The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2024-12-13), Zoom Communications's share price is $77.70. Zoom Communications's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Oct. 2024 was $3.00. Therefore, Zoom Communications's PE Ratio (TTM) for today is 25.90.


The historical rank and industry rank for Zoom Communications's PE Ratio (TTM) or its related term are showing as below:

LIM:ZM' s PE Ratio (TTM) Range Over the Past 10 Years
Min: 20.21   Med: 101.79   Max: 5233.33
Current: 29.02


During the past 8 years, the highest PE Ratio (TTM) of Zoom Communications was 5233.33. The lowest was 20.21. And the median was 101.79.


LIM:ZM's PE Ratio (TTM) is ranked worse than
52.41% of 1576 companies
in the Software industry
Industry Median: 27.485 vs LIM:ZM: 29.02

Zoom Communications's Earnings per Share (Diluted) for the three months ended in Oct. 2024 was $0.66. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Oct. 2024 was $3.00.

As of today (2024-12-13), Zoom Communications's share price is $77.70. Zoom Communications's EPS without NRI for the trailing twelve months (TTM) ended in Oct. 2024 was $5.54. Therefore, Zoom Communications's PE Ratio without NRI for today is 14.03.

During the past 8 years, Zoom Communications's highest PE Ratio without NRI was 2283.45. The lowest was 10.34. And the median was 29.80.

Zoom Communications's EPS without NRI for the three months ended in Oct. 2024 was $1.38. Its EPS without NRI for the trailing twelve months (TTM) ended in Oct. 2024 was $5.54.

During the past 12 months, Zoom Communications's average EPS without NRI Growth Rate was 10.60% per year. During the past 3 years, the average EPS without NRI Growth Rate was 16.00% per year. During the past 5 years, the average EPS without NRI Growth Rate was 163.80% per year.

During the past 8 years, Zoom Communications's highest 3-Year average EPS without NRI Growth Rate was 459.20% per year. The lowest was 16.00% per year. And the median was 132.00% per year.

Zoom Communications's EPS (Basic) for the three months ended in Oct. 2024 was $0.67. Its EPS (Basic) for the trailing twelve months (TTM) ended in Oct. 2024 was $3.06.


Zoom Communications PE Ratio (TTM) Historical Data

The historical data trend for Zoom Communications's PE Ratio (TTM) 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 Communications PE Ratio (TTM) Chart

Zoom Communications Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
PE Ratio (TTM)
Get a 7-Day Free Trial 847.78 165.36 34.28 220.59 31.21

Zoom Communications Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
PE Ratio (TTM) Get a 7-Day Free Trial 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 82.16 31.21 22.80 21.65 24.91

Competitive Comparison of Zoom Communications's PE Ratio (TTM)

For the Software - Application subindustry, Zoom Communications's PE Ratio (TTM), along with its competitors' market caps and PE Ratio (TTM) 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's PE Ratio (TTM) Distribution in the Software Industry

For the Software industry and Technology sector, Zoom Communications's PE Ratio (TTM) distribution charts can be found below:

* The bar in red indicates where Zoom Communications's PE Ratio (TTM) falls into.



Zoom Communications PE Ratio (TTM) Calculation

The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Zoom Communications's PE Ratio (TTM) for today is calculated as

PE Ratio (TTM)=Share Price/Earnings per Share (Diluted) (TTM)
=77.70/3.000
=25.90

Zoom Communications's Share Price of today is $77.70.
Zoom Communications's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Oct. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $3.00.

* 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:

PE Ratio (TTM)=Market Cap /Net Income

There are at least three kinds of PE Ratio (TTM)s used by different investors. They are Trailing Twelve Month PE Ratio (TTM) or PE Ratio (TTM) (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio (TTM) based on inflation-adjusted normalized PE Ratio (TTM) is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio (TTM), the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Zoom Communications  (LIM:ZM) PE Ratio (TTM) Explanation

The PE Ratio (TTM) can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio (TTM) is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio (TTM) is positive. Also for stocks with the same PE Ratio (TTM), the one with faster growth business is more attractive.

If a company loses money, the PE Ratio (TTM) becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio (TTM) divided by the growth ratio. He thinks a company with a PE Ratio (TTM) equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio (TTM) of 20, instead of a company growing 10% a year with a PE Ratio (TTM) of 10.

Because the PE Ratio (TTM) measures how long it takes to earn back the price you pay, the PE Ratio (TTM) can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio (TTM) measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio (TTM) can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratio (TTM)s are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio (TTM) is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio (TTM) can also be affected by non-recurring-items 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 (TTM).


Zoom Communications PE Ratio (TTM) Related Terms

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Zoom 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.