Question 1

What is Zoom Communications's P/E ratio?

Accepted Answer

Zoom Communications (ZM) P/E ratio is 12.4× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month earnings (net income), using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/E ratio calculated?

Accepted Answer

P/E = Share Price ÷ Trailing Twelve-Month (TTM) Diluted EPS, or equivalently Market Capitalisation ÷ TTM Net Income. 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/E ratio?

Accepted Answer

The price-to-earnings (P/E) ratio, also called the earnings multiple, measures how much investors pay per dollar of a company's trailing twelve-month (TTM) earnings. It is calculated as share price ÷ TTM diluted EPS (equivalent to market capitalisation ÷ TTM net income). A higher P/E implies the market is pricing in stronger future earnings growth or lower risk; a lower P/E can signal slower expected growth, higher risk, or potential undervaluation.

Question 4

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

Accepted Answer

There is no universal "good" P/E. As a rule of thumb, the S&P 500 has historically averaged a P/E in the mid-to-high teens; mature, slow-growth businesses commonly trade in the 10–18× range, while high-growth or asset-light companies often trade at 25–50×+. What matters is the comparison to sector peers and to the company's own historical range. For Zoom Communications specifically, the relevant sector benchmark is the current sector median of 29.4×.

Question 5

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

Accepted Answer

Zoom Communications's P/E ratio of 12.4× is below its own 5-year average of 213.9× and below the sector median of 29.4×. 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 P/E ratio range?

Accepted Answer

In the available daily series, Zoom Communications (ZM) P/E ratio has ranged from a low of 11.6× in 2026 to a high of 4089.5× in 2023. The 5-year average is 213.9× and the 5-year median is 28.7×.

Question 7

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

Accepted Answer

Zoom Communications (ZM) P/E ratio at the end of 2026 was 14.4×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month earnings figure available at that date.

Question 8

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

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (earnings). 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	$1.9B	14.4×	-12.0×	Jan 31, 2026
2025	$26.7B	$1.01B	26.4×	-4.6×	Jan 31, 2025
2024	$19.8B	$637M	31.0×	-180.9×	Jan 31, 2024
2023	$22B	$104M	211.9×	+178.4×	Jan 31, 2023
2022	$46B	$1.38B	33.5×	-129.9×	Jan 31, 2022
2021	$110B	$672M	163.4×	-671.0×	Jan 31, 2021
2020	$21.1B	$25.3M	834.4×	-1274.2×	Jan 31, 2020
2019	$16B	$7.58M	2108.6×	—	Jan 31, 2019


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P/E Ratio for Zoom Communications (ZM) 2019-2026

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

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

About P/E Ratio at Zoom Communications (ZM)

Zoom Communications P/E Ratio by Year

Zoom Communications P/E Ratio 2026: 14.4×

Zoom Communications P/E Ratio 2025: 26.4×

Zoom Communications P/E Ratio 2024: 31.0×

Zoom Communications P/E Ratio 2023: 211.9×

Zoom Communications P/E Ratio 2022: 33.5×

Sector peers by P/E Ratio — chart

Sector peers by P/E Ratio — table

Frequently asked questions

Zoom Communications (ZM) Key Financials