Market Pulse50Neutral

Zoom Communications, Inc.Opportunity Rank #11(ZM) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$77.95

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$77.95
Price
$235.35
Intrinsic Value
Undervalued by 202%MOS: $188.28

Fundamental Score

89/100
Bullish

Weighted across 6 signals

Narrative Score

59/100
Improving

No change vs previous

The intrinsic value of Zoom Communications, Inc. (ZM) is estimated at $235.35 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $77.95, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 13.04% long-term growth rate and a 9.00% discount rate (calculated: 8.91%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Zoom Communications, Inc. (ZM) is estimated at $235.35 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $77.95, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 13.04% long-term growth rate and a 9.00% discount rate (calculated: 8.91%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$235.35
▲ 201.92% upside
20% margin of safety: $188.28
Years: 10Growth Rate: 13.04%
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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
201.9% discount to price
100
FCF Yield
8.9% 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

59/100
Improving
Vs 6-Month Baseline:Average (46th pct)Weighted across 6 recent drivers
Trend: StableConfidence: 89%Updated: 3h ago
Sources: 71 (62 News · 9 Analyst)
Drivers(last 30 days)
16 regulatory scrutiny+0.7
41 news sentiment+0.3
3 earnings miss-0.1
Earnings beat+0.0
Margin pressure+0.0
Analyst upgrades+0.0

Investment Coach

Updated 15h ago
BUYConfidence: 81%
Thesis
Zoom Communications, Inc. is significantly undervalued with an estimated fair value 183.6% above its current price, supported by strong fundamentals including a high ROIC exceeding cost of capital by 15.8 points and a healthy free cash flow yield of 8.9%. The company demonstrates robust financial health with strong buyback activity and a positive free cash flow growth rate, 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.
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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.