Question 1

What is Zoom Communications's EV/EBITDA ratio?

Accepted Answer

Zoom Communications (ZM) EV/EBITDA ratio is 6.5× as of July 22, 2026. The ratio is calculated by dividing enterprise value by trailing twelve-month EBITDA, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the EV/EBITDA ratio calculated?

Accepted Answer

EV/EBITDA = Enterprise Value ÷ Trailing Twelve-Month (TTM) EBITDA, where Enterprise Value = Market Capitalisation + Total Debt − Cash & Short-Term Investments. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the EV/EBITDA ratio?

Accepted Answer

The EV/EBITDA ratio (the enterprise multiple) compares enterprise value (EV) to trailing twelve-month (TTM) EBITDA. EV is calculated as market capitalisation + total debt − cash & short-term investments. Because EV/EBITDA is capital-structure-neutral and ignores non-cash depreciation and amortisation, it is the standard multiple used in M&A and for cross-company or cross-border comparisons. Note: this calculation uses a simplified EV (minority interest and preferred equity excluded due to data availability), consistent with most public financial-data providers.

Question 4

What is a good EV/EBITDA ratio for Zoom Communications?

Accepted Answer

Mature, cash-generative businesses commonly trade in the 8–12× EV/EBITDA range; higher-growth, asset-light companies often trade at 15–25×+. EV/EBITDA is most useful for comparing companies with different capital structures (debt levels) or tax regimes. For Zoom Communications specifically, the relevant sector benchmark is the current sector median of 20.3×.

Question 5

Is Zoom Communications's EV/EBITDA ratio high or low?

Accepted Answer

Zoom Communications's EV/EBITDA ratio of 6.5× is below its own 5-year average of 28.2× and below the sector median of 20.3×. That places the current reading at the 2th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is Zoom Communications's historical EV/EBITDA ratio range?

Accepted Answer

In the available daily series, Zoom Communications (ZM) EV/EBITDA ratio has ranged from a low of 5.6× in 2026 to a high of 1274.7× in 2019. The 5-year average is 28.2× and the 5-year median is 17.7×.

Question 7

What was Zoom Communications's EV/EBITDA ratio in 2026?

Accepted Answer

Zoom Communications (ZM) EV/EBITDA ratio at the end of 2026 was 7.6×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month EBITDA figure available at that date.

Question 8

Why does Zoom Communications's EV/EBITDA ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (enterprise value, which tracks share price plus net debt) and the denominator (EBITDA). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2026	$27.3B	$2.56B	7.6×	-5.5×	Jan 31, 2026
2025	$26.7B	$1.44B	13.2×	-0.6×	Jan 31, 2025
2024	$19.8B	$937M	13.7×	-36.5×	Jan 31, 2024
2023	$22B	$332M	50.2×	+13.6×	Jan 31, 2023
2022	$46B	$1.11B	36.6×	-116.9×	Jan 31, 2022
2021	$110B	$689M	153.5×	-683.0×	Jan 31, 2021
2020	$21.1B	$24.3M	836.5×	-365.0×	Jan 31, 2020
2019	$16B	$13.2M	1201.5×	—	Jan 31, 2019


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EV/EBITDA for Zoom Communications (ZM) 2019-2026

EV/EBITDA daily chart for Zoom Communications (ZM)

Historical EV/EBITDA for Zoom Communications (ZM) from 2019 to 2026

About EV/EBITDA at Zoom Communications (ZM)

Zoom Communications EV/EBITDA by Year

Zoom Communications EV/EBITDA 2026: 7.6×

Zoom Communications EV/EBITDA 2025: 13.2×

Zoom Communications EV/EBITDA 2024: 13.7×

Zoom Communications EV/EBITDA 2023: 50.2×

Zoom Communications EV/EBITDA 2022: 36.6×

Sector peers by EV/EBITDA — chart

Sector peers by EV/EBITDA — table

Frequently asked questions

Zoom Communications (ZM) Key Financials