Market Pulse59Neutral

Zoom Communications, Inc.Opportunity Rank #5(ZM) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$108.36

Last updated: May 08, 2026

Price vs Intrinsic Value

$108.36
Price
$235.00
Intrinsic Value
Undervalued by 117%MOS: $188.00

Fundamental Score

89/100
Bullish

Weighted across 6 signals

Narrative Score

56/100
Improving

+2 vs previous

Trend Score

93/100
Strong

As of 2026-05-08

The intrinsic value of Zoom Communications, Inc. (ZM) is estimated at $235.00 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $108.36, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 13.04% long-term growth rate and a 9.01% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Zoom Communications, Inc. (ZM) is estimated at $235.00 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $108.36, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 13.04% long-term growth rate and a 9.01% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$235.00
▲ 116.87% upside
20% margin of safety: $188.00
Years: 10Growth Rate: 13.04%
Want to create your own valuation? Create a free account.

Capital Efficiency

Average Quarterly ROIC
22.77%
Cost of Capital (estimated)7%
Value StatusCreating Value

The company is earning a higher return on invested capital than it costs to raise that capital — a sign of strong, efficient value creation.

Complete historical ROIC is available with
.

Fundamental Details

89/100
BullishWeighted across 6 signals
DCF Discount
116.9% discount to price
100
FCF Yield
6.4% trailing FCF yield
100
ROIC vs WACC
ROIC 22.8% vs WACC 7.0% (3.3x)
100
Net Debt / FCF
Net cash position
100
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
5.7% 5Y FCF CAGR
54
Strengths lead the score: DCF Discount, FCF Yield.

Narrative Details

56/100
Improving
+2 vs previous · +1 new driversVs 6-Month Baseline:Below Avg (21st pct)Weighted across 4 recent drivers
Trend: StableConfidence: 89%Updated: 16h ago
Sources: 53 (46 News · 7 Analyst)
Drivers(last 30 days)
35 news sentiment+0.5
10 regulatory scrutiny+0.1
Macro headwinds+0.0
7 analyst reiterations0.0

Trend Details

93/100
StrongAs of 2026-05-08311 daily bars used
Distance from 52-Week High0.0%
Price vs 50 EMA+21.3%
Price vs 21 EMA+13.1%
Price vs 21 EMA96 · +13.1%
Price vs 50 EMA98 · +21.3%
21 EMA vs 50 EMA91 · +7.3%
3M RS vs SPY87 · +11.6%
6M RS vs SPY92 · +21.8%
Distance from 52W High100 · 0.0%

Investment Coach

Updated 12h ago
BUYConfidence: 81%
Thesis
Zoom Communications, Inc. is significantly undervalued with an estimated fair value 103.7% above its current price, supported by strong fundamentals including a high ROIC exceeding its cost of capital by 15.8 points and a healthy free cash flow yield of 6.4%. The company demonstrates robust financial health and growth potential, making it an attractive buy opportunity.
Key Risk
A key risk is if the company's ROIC falls below its cost of capital, which would undermine its profitability and valuation thesis.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Confirm ROIC stays above cost of capital over coming quarters.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 18.36%5 Year CAGR: 5.70%

Free Cash Flow (in millions)

TTM202520242023202220212020201920182017
$2,055$2,082$1,726$1,405$1,751$1,557$190$82$29$14

How Intrinziq Estimates Fair Value

Intrinziq estimates Zoom Communications, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Zoom Communications, Inc.Technology

Zoom Communications, Inc. engages in the provision of a communications and collaboration platform. It operates through the following geographical segments: Americas, Asia Pacific, and Europe, Middle East, and Africa. The company was founded by Eric S. Yuan in 2011 and is headquartered in San Jose, CA.