GURUFOCUS.COM » STOCK LIST » USA » NAS » Zoom Video Communications Inc (NAS:ZM) » Definitions » PS Ratio
Switch to:

Zoom Video Communications PS Ratio

: 8.26 (As of Today)
View and export this data going back to 2019. Start your Free Trial

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Zoom Video Communications's share price is $113.85. Zoom Video Communications's Revenue per Share for the trailing twelve months (TTM) ended in Apr. 2022 was $13.78. Hence, Zoom Video Communications's PS Ratio for today is 8.26.

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

ZM' s PS Ratio Range Over the Past 10 Years
Min: 6.51   Med: 32.37   Max: 108.95
Current: 8.26

During the past 6 years, Zoom Video Communications's highest PS Ratio was 108.95. The lowest was 6.51. And the median was 32.37.

ZM's PS Ratio is ranked worse than
81.62% of 2672 companies
in the Software industry
Industry Median: 2.71 vs ZM: 8.26

Zoom Video Communications's Revenue per Sharefor the three months ended in Apr. 2022 was $3.50. Its Revenue per Share for the trailing twelve months (TTM) ended in Apr. 2022 was $13.78.

Warning Sign:

Zoom Video Communications Inc revenue growth has slowed down over the past 12 months.

During the past 12 months, the average Revenue per Share Growth Rate of Zoom Video Communications was 26.30% per year. During the past 3 years, the average Revenue per Share Growth Rate was 121.70% per year. During the past 5 years, the average Revenue per Share Growth Rate was 131.50% per year.

During the past 6 years, Zoom Video Communications's highest 3-Year average Revenue per Share Growth Rate was 150.80% per year. The lowest was 121.30% per year. And the median was 121.70% per year.

Back to Basics: PS Ratio


Zoom Video Communications PS Ratio Historical Data

The historical data trend for Zoom Video Communications's PS 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
PS Ratio
Premium Member Only - - 31.16 41.84 11.51

Zoom Video Communications Quarterly Data
Jan17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
PS 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 29.30 31.47 21.37 11.51 7.23

Competitive Comparison

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

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

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



Zoom Video Communications PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Zoom Video Communications's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=113.85/13.777
=8.26

Zoom Video Communications's Share Price of today is $113.85.
Zoom Video Communications's Revenue per Share for the trailing twelve months (TTM) ended in Apr. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $13.78.

* 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:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Zoom Video Communications  (NAS:ZM) PS Ratio Explanation

The PS 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 PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE 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 PS 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 PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio 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

The PS 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

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


Zoom Video Communications Business Description

Zoom Video Communications logo
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
Mcdermott William R director C/O UNDER ARMOUR, INC. 1020 HULL STREET, 3RD FLOOR BALTIMORE MD 21230
Subotovsky Santiago director C/O EMERGENCE CAPITAL PARTNERS 160 BOVENT ROAD SUITE 300 SAN MATEO CA 94402
Napolitano Janet director C/O VIR BIOTECHNOLOGY, INC. 499 ILLINOIS STREET, SUITE 500 SAN FRANCISCO CA 94158
Crehan Shane officer: Chief Accounting Officer C/O EVENTBRITE, INC. 155 5TH STREET, 7TH FLOOR SAN FRANCISCO CA 94103
Sankarlingam Velchamy officer: Pres. of Engineering & Product C/O ZOOM VIDEO COMMUNICATIONS, INC. 55 ALMADEN BOULEVARD, 6TH FLOOR SAN JOSE CA 95113
Mcmaster Herbert Raymond director C/O ZOOM VIDEO COMMUNICATIONS, INC. 55 ALMADEN BOULEVARD, 6TH FLOOR SAN JOSE CA 95113
Leone Douglas M 10 percent owner C/O SEQUOIA CAPITAL 2800 SAND HILL RD, SUITE 101 MENLO PARK CA 94025
Abramson Michael Saul 10 percent owner C/O SEQUOIA CAPITAL 2800 SAND HILL ROAD, SUITE 101 MENLO PARK CA 94025
Azus Ryan officer: Chief Revenue Officer C/O ZOOM VIDEO COMMUNICATIONS, INC. 55 ALMADEN BOULEVARD, 6TH FLOOR SAN JOSE CA 95113
Salesforce Com Inc 10 percent owner SALESFORCE TOWER 415 MISSION STREET 3RD FL SAN FRANCISCO CA 94105
Bonus Goal International Ltd 10 percent owner C/O 7/F, CHEUNG KONG CENTER 2 QUEEN'S ROAD CENTRAL HONG KONG K3 00000
Sc Global Growth Ii Management, L.p. 10 percent owner 2800 SAND HILL ROAD, SUITE 101 MENLO PARK CA 94025
Red Porphyry, Llc 10 percent owner 635 KNIGHT WAY STANFORD CA 94305
Qualcomm Inc/de 10 percent owner 5775 MOREHOUSE DR SAN DIEGO CA 92121
Oscar Time Ltd 10 percent owner C/O SUITES PT. 2909 & 2910 HARBOUR CENTRE, 25 HARBOUR ROAD WANCHAI K3 00000

Zoom Video Communications Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)