Question 1

What is Zoom Communications's P/B ratio?

Accepted Answer

Zoom Communications (ZM) P/B ratio is 2.6× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by book value of equity, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/B ratio calculated?

Accepted Answer

P/B = Market Capitalisation ÷ Book Value of Equity (most recent quarterly shareholders' equity), or equivalently Share Price ÷ Book Value Per Share. 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 P/B ratio?

Accepted Answer

The price-to-book (P/B) ratio compares a company's market capitalisation to its book value of equity (total shareholders' equity) on the most recent quarterly balance sheet. It is calculated as market cap ÷ book value of equity (equivalent to share price ÷ book value per share). A P/B below 1× implies the market values the business below its accounting net worth; values well above 1× reflect intangible assets, brand value, or a high return on equity.

Question 4

What is a good P/B ratio for Zoom Communications?

Accepted Answer

A "good" P/B depends on the business model. Banks, insurers, and other capital-heavy financials typically trade near 1×; asset-light technology and consumer-brand companies can sustainably trade at 5×+ because much of their value is intangible. P/B is most informative when paired with return on equity (ROE). For Zoom Communications specifically, the relevant sector benchmark is the current sector median of 5.6×.

Question 5

Is Zoom Communications's P/B ratio high or low?

Accepted Answer

Zoom Communications's P/B ratio of 2.6× is below its own 5-year average of 5.0× and below the sector median of 5.6×. That places the current reading at the 16th 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 P/B ratio range?

Accepted Answer

In the available daily series, Zoom Communications (ZM) P/B ratio has ranged from a low of 2.1× in 2024 to a high of 87.5× in 2020. The 5-year average is 5.0× and the 5-year median is 2.9×.

Question 7

What was Zoom Communications's P/B ratio in 2026?

Accepted Answer

Zoom Communications (ZM) P/B ratio at the end of 2026 was 2.8×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month book value figure available at that date.

Question 8

Why does Zoom Communications's P/B ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (book value). 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	$9.81B	2.8×	-0.2×	Jan 31, 2026
2025	$26.7B	$8.94B	3.0×	+0.5×	Jan 31, 2025
2024	$19.8B	$8.02B	2.5×	-1.1×	Jan 31, 2024
2023	$22B	$6.21B	3.5×	-4.4×	Jan 31, 2023
2022	$46B	$5.78B	8.0×	-20.5×	Jan 31, 2022
2021	$110B	$3.86B	28.5×	+3.1×	Jan 31, 2021
2020	$21.1B	$834M	25.3×	—	Jan 31, 2020
2019	$16B	-$7.44M	—	—	Jan 31, 2019


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P/B Ratio for Zoom Communications (ZM) 2020-2026

P/B Ratio daily chart for Zoom Communications (ZM)

Historical P/B Ratio for Zoom Communications (ZM) from 2019 to 2026

About P/B Ratio at Zoom Communications (ZM)

Zoom Communications P/B Ratio by Year

Zoom Communications P/B Ratio 2026: 2.8×

Zoom Communications P/B Ratio 2025: 3.0×

Zoom Communications P/B Ratio 2024: 2.5×

Zoom Communications P/B Ratio 2023: 3.5×

Zoom Communications P/B Ratio 2022: 8.0×

Sector peers by P/B Ratio — chart

Sector peers by P/B Ratio — table

Frequently asked questions

Zoom Communications (ZM) Key Financials