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Zoom CommunicationsMEX:ZM 78 Return-on-Tangible-Asset is 14.76% as of Apr. 2026, which is 102% above its 10-year median of 7.29. GuruFocus rates MEX:ZM with a GF Score™ of 78/100 and a GF Value™ of MXN1,382.11 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 2,890 Software companies, Zoom Communications ranks better than 90.38% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Zoom Communications's annualizedNet Income for the quarter that ended in Apr. 2026 was MXN29,825 Mil. Zoom Communications's average total tangible assets for the quarter that ended in Apr. 2026 was MXN202,085 Mil. Therefore, Zoom Communications's annualized Return-on-Tangible-Asset for the quarter that ended in Apr. 2026 was 14.76%.
The historical rank and industry rank for Zoom Communications's Return-on-Tangible-Asset or its related term are showing as below:
MEX:ZM'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -1.78 Med: 7.29 Max: 21.54
Current: 18.66
During the past 10 years, Zoom Communications's highest Return-on-Tangible-Asset was 21.54%. The lowest was -1.78%. And the median was 7.29%.
MEX:ZM's Return-on-Tangible-Asset is ranked better than 90.38% of 2890
companies
in the Software industry
Industry Median: 2.07
vs MEX:ZM: 18.66
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Zoom Communications Return-on-Tangible-Asset Related Terms
Zoom Communications Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Zoom Communications's Return-on-Tangible-Asset 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.
MEX:ZM vs FICO, MSTR, WDAY: Return-on-Tangible-Asset Comparison
For the Software - Application subindustry, Zoom Communications's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, Zoom Communications's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Zoom Communications's Return-on-Tangible-Asset falls into.
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Apr. 2026) net income data.
What does a Return-on-Tangible-Asset of 14.76% mean?
Zoom Communications (MEX:ZM) has a Return-on-Tangible-Asset of 14.76% as of Apr. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Zoom Communications and its competitors. This is 102% above median its historical median of 7.29. According to the industry distribution chart, Zoom Communications ranks #278 out of 2890 companies in the Software industry, placing it in the top 9.6%.
Is Zoom Communications' Return-on-Tangible-Asset too high?
Zoom Communications' current Return-on-Tangible-Asset of 14.76% is 102% above median its 10-year median of 7.29. The Software industry median Return-on-Tangible-Asset is 2.07. Zoom Communications' value of 14.76% is 613% above this industry median. Based on the distribution chart, Zoom Communications ranks #278 out of 2890 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Zoom Communications has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zoom Communications' Return-on-Tangible-Asset compare to FICO and MSTR?
According to the Software industry distribution chart, Zoom Communications ranks #278 out of 2890 companies for Return-on-Tangible-Asset. This places Zoom Communications in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.07. Zoom Communications' value of 14.76% is 613% above this benchmark. While the company's 10-year median is 7.29 vs. the industry median of 2.07, Zoom Communications has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Software company?
The median Return-on-Tangible-Asset among Software companies is 2.07, based on 2,890 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zoom Communications's current Return-on-Tangible-Asset of 14.76% is 613% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Zoom Communications and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zoom Communications's current Return-on-Tangible-Asset is 14.76%, which is 102% above median its own 10-year median of 7.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zoom Communications stock overvalued right now?
Based on GuruFocus' analysis, Zoom Communications (MEX:ZM) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN1,382.11, compared to a current price of MXN1,630.00 — trading 17.9% above its estimated fair value. The current Return-on-Tangible-Asset is 14.76%, which is 102% above median its 10-year median of 7.29 and 613% above the Software industry median of 2.07. Zoom Communications' overall GF Score™ is 78/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Zoom Communications (MEX:ZM), the current Return-on-Tangible-Asset is 14.76% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Zoom Communications (MEX:ZM) Overvalued in 2026?
Based on GuruFocus' analysis, Zoom Communications stock appears to be overvalued.
The current stock price of MXN1,630.00 is trading 17.9% above its estimated GF Value™ of MXN1,382.11.
GuruFocus considers Zoom Communications to be Modestly Overvalued.
Key valuation signals for MEX:ZM:
Return-on-Tangible-Asset: 14.76% (102% above median its 10-year median of 7.29)
GF Value™: MXN1,382.11 vs. price of MXN1,630.00 (17.9% above fair value)
Industry Position: 613% above the Software median (#278 of 2890)
No single metric tells the full story. See the MEX:ZM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zoom Communications provides a video-first communications platform that connects people through frictionless video, voice, chat, and content sharing. The company's cloud-native platform enables video experiences and connects users across various devices and locations in a single meeting. Zoom has launched a variety of communications-related solutions, including Zoom Phone and Zoom Contact Center. The firm was founded in 2011 and serves companies of all sizes from all industries around the world.
78GF Score
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