Zoom CommunicationsXSWX:ZM 85 ROC (Joel Greenblatt) % is 396.78% as of Apr. 2026, which is 159% above its 10-year median of 153.05. GuruFocus rates XSWX:ZM with a GF Score™ of 85/100 and a GF Value™ of CHF67.37. The stock has 3 warning signs investors should review. Among 2,801 Software companies, Zoom Communications ranks better than 90.54% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Zoom Communications's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 396.78%.
The historical rank and industry rank for Zoom Communications's ROC (Joel Greenblatt) % or its related term are showing as below:
XSWX:ZM'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -37.09 Med: 153.05 Max: 375.9
Current: 358.18
During the past 10 years, Zoom Communications's highest ROC (Joel Greenblatt) % was 375.90%. The lowest was -37.09%. And the median was 153.05%.
XSWX:ZM's ROC (Joel Greenblatt) % is ranked better than 90.54% of 2801
companies
in the Software industry
Industry Median: 19.63
vs XSWX:ZM: 358.18
Zoom Communications's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -3.90% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Zoom Communications ROC (Joel Greenblatt) % Related Terms
Zoom Communications ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Zoom Communications's ROC (Joel Greenblatt) % 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.
XSWX:ZM vs FICO, MSTR, WDAY: ROC (Joel Greenblatt) % Comparison
For the Software - Application subindustry, Zoom Communications's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, Zoom Communications's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Zoom Communications's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Apr. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 396.78% mean?
Zoom Communications (XSWX:ZM) has a ROC (Joel Greenblatt) % of 396.78% as of Apr. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Zoom Communications and its competitors. This is 159% above median its historical median of 153.05. According to the industry distribution chart, Zoom Communications ranks #265 out of 2801 companies in the Software industry, placing it in the top 9.5%.
Is Zoom Communications' ROC (Joel Greenblatt) % too high?
Zoom Communications' current ROC (Joel Greenblatt) % of 396.78% is 159% above median its 10-year median of 153.05. The Software industry median ROC (Joel Greenblatt) % is 19.63. Zoom Communications' value of 396.78% is 1921.3% above this industry median. Based on the distribution chart, Zoom Communications ranks #265 out of 2801 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 85/100, reflecting its overall financial health beyond just this single metric.
How does Zoom Communications' ROC (Joel Greenblatt) % compare to FICO and MSTR?
According to the Software industry distribution chart, Zoom Communications ranks #265 out of 2801 companies for ROC (Joel Greenblatt) %. This places Zoom Communications in the top 10% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 19.63. Zoom Communications' value of 396.78% is 1921.3% above this benchmark. While the company's 10-year median is 153.05 vs. the industry median of 19.63, 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 ROC (Joel Greenblatt) % for a Software company?
The median ROC (Joel Greenblatt) % among Software companies is 19.63, based on 2,801 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zoom Communications's current ROC (Joel Greenblatt) % of 396.78% is 1921.3% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Zoom Communications and its competitors. For the Software industry, the median ROC (Joel Greenblatt) % is 19.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zoom Communications's current ROC (Joel Greenblatt) % is 396.78%, which is 159% above median its own 10-year median of 153.05. 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?
Zoom Communications (XSWX:ZM) has a current ROC (Joel Greenblatt) % of 396.78%. The stock's GF Value™ is CHF67.37, compared to a current price of CHF72.77 — trading 8% above its estimated fair value. The current ROC (Joel Greenblatt) % is 396.78%, which is 159% above median its 10-year median of 153.05 and 1921.3% above the Software industry median of 19.63. Zoom Communications' overall GF Score™ is 85/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Zoom Communications (XSWX:ZM), the current ROC (Joel Greenblatt) % is 396.78% 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 (XSWX:ZM) Overvalued in 2026?
Based on GuruFocus' analysis, Zoom Communications stock appears to be overvalued.
The current stock price of CHF72.77 is trading 8% above its estimated GF Value™ of CHF67.37.
Key valuation signals for XSWX:ZM:
ROC (Joel Greenblatt) %: 396.78% (159% above median its 10-year median of 153.05)
GF Value™: CHF67.37 vs. price of CHF72.77 (8% above fair value)
Industry Position: 1921.3% above the Software median (#265 of 2801)
No single metric tells the full story. See the XSWX: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.
85GF Score
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