5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Zoom Communications's 5-Year ROIIC % for the quarter that ended in Jan. 2026 was 6.54%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Zoom Communications's 5-Year ROIIC % or its related term are showing as below:
XSWX:ZM's 5-Year ROIIC % is ranked better than 53.88% of 2318
companies
in the Software industry
Industry Median: 5.125
vs XSWX:ZM: 6.54
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Zoom Communications 5-Year ROIIC % Related Terms
Zoom Communications 5-Year ROIIC % Historical Data
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The historical data trend for Zoom Communications's 5-Year ROIIC % 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, TEAM, ROP: 5-Year ROIIC % Comparison
For the Software - Application subindustry, Zoom Communications's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Software Industry
For the Software industry and Technology sector, Zoom Communications's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Zoom Communications's 5-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Zoom Communications (XSWX:ZM) has a 5-Year ROIIC % of 6.54 as of Jan. 2026. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Zoom Communications and its competitors. According to the industry distribution chart, Zoom Communications ranks #1069 out of 2318 companies in the Software industry, placing it in the top 46.1%.
Is Zoom Communications' 5-Year ROIIC % too high?
Zoom Communications' current 5-Year ROIIC % is 6.54. The Software industry median 5-Year ROIIC % is 5.13. Zoom Communications' value of 6.54 is 27.6% above this industry median. Based on the distribution chart, Zoom Communications ranks #1069 out of 2318 companies in the Software industry, which is above the industry midpoint. Overall, Zoom Communications has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Zoom Communications' 5-Year ROIIC % compare to FICO and TEAM?
According to the Software industry distribution chart, Zoom Communications ranks #1069 out of 2318 companies for 5-Year ROIIC %. This puts Zoom Communications in the upper half of its industry. The industry median 5-Year ROIIC % is 5.13. Zoom Communications' value of 6.54 is 27.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for a Software company?
The median 5-Year ROIIC % among Software companies is 5.13, based on 2,318 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zoom Communications's current 5-Year ROIIC % of 6.54 is 27.6% 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Zoom Communications and its competitors. For the Software industry, the median 5-Year ROIIC % is 5.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zoom Communications's current 5-Year ROIIC % is 6.54. 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 5-Year ROIIC % of 6.54. The stock's GF Value™ is CHF63.80, compared to a current price of CHF68.47 — trading 7.3% above its estimated fair value. The current 5-Year ROIIC % is 6.54 and 27.6% above the Software industry median of 5.13. 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 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Zoom Communications (XSWX:ZM), the current 5-Year ROIIC % is 6.54 as of Jan. 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 CHF68.47 is trading 7.3% above its estimated GF Value™ of CHF63.80.
Key valuation signals for XSWX:ZM:
5-Year ROIIC %: 6.54
GF Value™: CHF63.80 vs. price of CHF68.47 (7.3% above fair value)
Industry Position: 27.6% above the Software median (#1069 of 2318)
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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