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Analyzing the Price-to-Earnings Ratio of Zoom Video Communications Inc. (ZM)

The price-to-earnings ratio for Zoom Video Communications Inc. (NASDAQ: ZM) is above average at 16,833.33x. The 36-month beta value for ZM is also noteworthy at -0.25. There are mixed opinions on the stock, with 6 analysts rating it as a “buy,” 2 rating it as “overweight,” 25 rating it as “hold,” and 1 rating it as “sell.”

The average price estimated by analysts for ZM is $83.29, which is $18.88 above than the current price. The public float for ZM is 227.71M, and at present, short sellers hold a 6.35% of that float. The average trading volume of ZM on May 24, 2023 was 4.05M shares.

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ZM) stock’s latest price update

Zoom Video Communications Inc. (NASDAQ: ZM)’s stock price has gone decline by -8.07 in comparison to its previous close of 71.41, however, the company has experienced a -0.52% decrease in its stock price over the last five trading days. The Wall Street Journal reported 12 hours ago that Zoom Has Some Big Sales Calls to Make

ZM’s Market Performance

Zoom Video Communications Inc. (ZM) has experienced a -0.52% fall in stock performance for the past week, with a -0.23% drop in the past month, and a -10.55% drop in the past quarter. The volatility ratio for the week is 4.05%, and the volatility levels for the past 30 days are at 3.07% for ZM. The simple moving average for the last 20 days is 2.12% for ZM’s stock, with a simple moving average of -12.92% for the last 200 days.

ZM Trading at -2.67% from the 50-Day Moving Average

After a stumble in the market that brought ZM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -47.08% of loss for the given period.

Volatility was left at 3.07%, however, over the last 30 days, the volatility rate increased by 4.05%, as shares surge +4.12% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -4.40% lower at present.

During the last 5 trading sessions, ZM fell by -0.52%, which changed the moving average for the period of 200-days by -42.34% in comparison to the 20-day moving average, which settled at $64.42. In addition, Zoom Video Communications Inc. saw -3.09% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at ZM starting from Steckelberg Kelly, who sale 3,224 shares at the price of $63.88 back on May 12. After this action, Steckelberg Kelly now owns 0 shares of Zoom Video Communications Inc., valued at $205,948 using the latest closing price.

Bawa Aparna, the Chief Operating Officer of Zoom Video Communications Inc., sale 10,500 shares at $61.42 during a trade that took place back on May 02, which means that Bawa Aparna is holding 29,119 shares at $644,874 based on the most recent closing price.

Stock Fundamentals for ZM

Current profitability levels for the company are sitting at:

  • +5.59 for the present operating margin
  • +69.05 for the gross margin

The net margin for Zoom Video Communications Inc. stands at +2.36. The total capital return value is set at 4.03, while invested capital returns managed to touch 1.71. Equity return is now at value 1.70, with 1.30 for asset returns.

Based on Zoom Video Communications Inc. (ZM), the company’s capital structure generated 1.55 points at debt to equity in total, while total debt to capital is 1.53. Total debt to assets is 1.19, with long-term debt to equity ratio resting at 1.19. Finally, the long-term debt to capital ratio is 1.17.

When we switch over and look at the enterprise to sales, we see a ratio of 3.54, with the company’s debt to enterprise value settled at 0.01. The receivables turnover for the company is 8.99 and the total asset turnover is 0.56. The liquidity ratio also appears to be rather interesting for investors as it stands at 3.53.


In summary, Zoom Video Communications Inc. (ZM) has had a bad performance as of late. Analysts have bullish opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.