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Zoom Video Communications PS Ratio

: 103.49 (As of Today)
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As of today, Zoom Video Communications's share price is $471.61. Zoom Video Communications's Revenue per Share for the trailing twelve months (TTM) ended in Jul. 2020 was $4.56. Hence, Zoom Video Communications's P/S Ratio for today is 103.49.

Warning Sign:

Zoom Video Communications Inc stock PS Ratio (=170.33) is close to 2-year high of 170.33

NAS:ZM' s PS Ratio Range Over the Past 10 Years
Min: 25.83   Med: 44.11   Max: 122.67
Current: 103.49

25.83
122.67

During the past 4 years, Zoom Video Communications's highest P/S Ratio was 122.67. The lowest was 25.83. And the median was 44.11.

NAS:ZM's PS Ratio is ranked lower than
98% of the 403 Companies
in the Telecommunication Services industry.

( Industry Median: 1.56 vs. NAS:ZM: 103.49 )

Zoom Video Communications's Revenue per Sharefor the three months ended in Jul. 2020 was $2.23. Its Revenue per Share for the trailing twelve months (TTM) ended in Jul. 2020 was $4.56.

During the past 12 months, the average Revenue per Share Growth Rate of Zoom Video Communications was 113.10% per year. During the past 3 years, the average Revenue per Share Growth Rate was 121.30% per year.

During the past 4 years, Zoom Video Communications's highest 3-Year average Revenue per Share Growth Rate was 121.30% per year. The lowest was 121.30% per year. And the median was 121.30% per year.

Back to Basics: P/S Ratio


Zoom Video Communications PS Ratio Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Zoom Video Communications Annual Data
Jan17 Jan18 Jan19 Jan20
PS Ratio 0.00 0.00 0.00 29.29

Zoom Video Communications Quarterly Data
Jan17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20
PS Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 44.67 29.46 29.29 47.88 0.00

Competitive Comparison
* 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.


Zoom Video Communications PS Ratio Distribution

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



Zoom Video Communications PS Ratio Calculation

The P/S Ratio is another ratio widely used to value stocks. It was first used by Ken Fisher.

Zoom Video Communications's P/S Ratio for today is calculated as

P/S Ratio=Share Price/Revenue per Share (TTM)
=471.61/4.557
=103.49

Zoom Video Communications's Share Price of today is $471.61.
Zoom Video Communications's Revenue per Share for the trailing twelve months (TTM) ended in Jul. 2020 was 0.569 (Oct. 2019 ) + 0.643 (Jan. 2020 ) + 1.112 (Apr. 2020 ) + 2.233 (Jul. 2020 ) = $4.56.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

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

P/E Ratio=Market Cap/Revenue

The revenue here is for the trailing 12 months.


Zoom Video Communications  (NAS:ZM) PS Ratio Explanation

The P/S ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The P/S ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The P/S ratio is a great valuation tool for evaluating cyclical businesses where the P/E ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the P/S ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the Price/Earnings ratio and Price/Cash Flow or Price/Free Cash Flow, the P/E ratio measures the valuation based on the earning power of the company. This is where it is different from Price/Book ratio, which measures the valuation based on the company's balance sheet.


Be Aware

The P/S ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Zoom Video Communications PS Ratio Related Terms


Zoom Video Communications PS Ratio Headlines

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