ZM Stock Fair Value Calculator – Zoom Video Communications Stock Gains 1.56% Amidst Positive Trading Session
September 17, 2024
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Zoom Video Communications ($NASDAQ:ZM) is a global communications company that provides video conferencing and online meeting solutions. The company’s platform has become increasingly popular in recent years, with the rise of remote work and virtual meetings. As a result, Zoom’s stock has been closely watched by investors, and on Friday, the company saw a significant increase of 1.56% in its stock value. The positive trading session on Friday, which contributed to Zoom’s stock gains, can be attributed to several factors. One of the main reasons for this growth is the overall trend of the stock market. This overall positive sentiment in the market likely had a ripple effect on Zoom’s stock. Furthermore, Zoom has also recently announced a partnership with Dropbox, another popular technology company. This partnership will allow users to start and join Zoom meetings directly from Dropbox’s platform, making it easier for users to collaborate and communicate remotely. This news may have also contributed to the increase in Zoom’s stock value. Moreover, Zoom has continued to see steady growth in its user base and revenue. This consistent growth in both revenue and user base has likely instilled confidence in investors, leading to the positive trading session on Friday. It is worth noting that while Zoom’s stock has been on an upward trend overall, it has also seen some dips in recent months due to concerns about competition and security issues.
However, with the company taking steps to address these concerns and its continued growth, investors remain optimistic about Zoom’s future. With its popular platform, partnerships with other tech giants, and strong financials, Zoom continues to be a leading player in the fast-growing market of video conferencing and online meetings.
Analysis – ZM Stock Fair Value Calculator
As an analyst at GoodWhale, I have extensively examined the fundamentals of ZOOM VIDEO COMMUNICATIONS and have determined that it is a solid company with strong potential for growth. My analysis includes a thorough evaluation of the company’s financial statements, market trends, and competitive landscape. Based on our proprietary Valuation Line, we have calculated the fair value of ZOOM VIDEO COMMUNICATIONS’ stock to be around $158.1. This takes into account various factors such as revenue and earnings growth, cash flow, and market conditions. This means that the current trading price of $67.59 is significantly undervalued by approximately 57.3%. In recent years, the demand for video conferencing and remote communication solutions has skyrocketed, making ZOOM VIDEO COMMUNICATIONS a leader in its industry. With its user-friendly platform and strong customer base, the company has shown consistent growth and profitability. This has only strengthened the company’s position in the market and bodes well for future growth opportunities. In addition to its strong financial performance, ZOOM VIDEO COMMUNICATIONS also boasts a talented management team with a clear vision for the company’s future. They have successfully navigated through challenges and continue to innovate and expand their offerings to meet the evolving needs of their customers. In conclusion, as an analyst at GoodWhale, I have full confidence in the potential of ZOOM VIDEO COMMUNICATIONS. The current undervaluation of its stock presents a great opportunity for investors to capitalize on a promising company with a strong track record and bright future prospects. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for ZM. More…
| Total Revenues | Net Income | Net Margin |
| 4.53k | 637.46 | 12.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ZM. More…
| Operations | Investing | Financing |
| 1.6k | -1.18k | 60.19 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for ZM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.93k | 1.91k | 26.34 |
Key Ratios Snapshot
Some of the financial key ratios for ZM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.5% | -7.3% | 11.6% |
| FCF Margin | ROE | ROA |
| 32.5% | 4.3% | 3.3% |
Peers
In recent years, the video conferencing market has been growing rapidly with the advent of new technologies. Among the various players in this market, Zoom Video Communications Inc has emerged as a clear leader, with a market share of around 60%.
However, the company faces stiff competition from a number of other players, including Blackbird PLC, ironSource Ltd, and SentinelOne Inc.
– Blackbird PLC ($LSE:BIRD)
Blackbird PLC is a 54.22M market cap company with a ROE of -8.0%. The company is engaged in the business of providing technology solutions and services. It offers a range of products and services, including software development, web design, e-commerce, and online marketing. The company has a strong focus on delivering quality products and services to its clients. It has a team of experienced professionals who are committed to providing the best possible solutions to their clients’ needs.
– ironSource Ltd ($NYSE:IS)
IronSource Ltd is a provider of software development tools. The company has a market cap of 3.26B as of 2022 and a return on equity of 4.06%. IronSource Ltd provides tools to enable developers to create, manage, and optimize their applications. The company offers a suite of products that help developers to design, develop, test, and deploy their applications.
– SentinelOne Inc ($NYSE:S)
SentinelOne Inc is a publicly traded cybersecurity company headquartered in Mountain View, California. The company provides endpoint security, network security, and cloud security solutions. As of 2022, the company has a market capitalization of 6.58 billion and a return on equity of -12.5%. The company’s products are used by government agencies and Fortune 500 companies around the world.
Summary
Shares of Zoom Video Communications Inc. showed a positive trend as they rose 1.56% to $67.59 on Friday, reflecting an overall positive day for the stock market. This signifies that investors are confident in the company’s future growth and performance. Analysts predict that the demand for video conferencing services, which is the company’s main business, will continue to rise due to the increased use of remote work and online communication.
Additionally, the company’s strong financials and consistent revenue growth make it a favorable option for investors. Overall, the current market sentiment towards Zoom Video Communications is positive, making it a potential investment opportunity.
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