Market Pulse44Neutral

Zoom Communications, Inc.Opportunity Rank #70(ZM) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$84.34

Last updated: Jun 23, 2026

Price vs Intrinsic Value

$84.34
Price
$240.10
Intrinsic Value
Undervalued by 185%MOS: $192.08

Fundamental Score

89/100
Bullish

Weighted across 6 signals

Narrative Score

54/100
Weak

No change vs previous

Trend Score

26/100
Weak

As of 2026-06-22

The intrinsic value of Zoom Communications, Inc. (ZM) is estimated at $240.10 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $84.34, 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: 8.98%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Zoom Communications, Inc. (ZM) is estimated at $240.10 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $84.34, 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: 8.98%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$240.10
▲ 184.68% upside
20% margin of safety: $192.08
Years: 10Growth Rate: 13.04%
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Capital Efficiency

Average Quarterly ROIC
32.18%
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
184.7% discount to price
100
FCF Yield
8.4% trailing FCF yield
100
ROIC vs WACC
ROIC 32.2% vs WACC 7.0% (4.6x)
100
Net Debt / FCF
Net cash position
100
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
6.0% 5Y FCF CAGR
55
Strengths lead the score: DCF Discount, FCF Yield.

Narrative Details

54/100
Weak
Vs 6-Month Baseline:Low (4th pct)Weighted across 5 recent drivers
Trend: StableConfidence: 87%Updated: 48m ago
Sources: 64 (46 News · 18 Analyst)
Drivers(last 30 days)
43 news sentiment+0.3
2 regulatory scrutiny+0.1
Analyst upgrades+0.0
Upgrade headlines+0.0
17 analyst reiterations0.0

Trend Details

26/100
WeakAs of 2026-06-22308 daily bars used
Price vs 21 EMA-11.6%
Price vs 50 EMA-11.4%
6M Relative Strength vs SPY-15.8%
Price vs 21 EMA4 · -11.6%
Price vs 50 EMA8 · -11.4%
21 EMA vs 50 EMA52 · +0.2%
3M RS vs SPY31 · -4.7%
6M RS vs SPY15 · -15.8%
Distance from 52W High51 · -24.6%

Investment Coach

Updating... 12d ago
BUYConfidence: 81%
Thesis
Zoom Communications, Inc. is significantly undervalued with a fair value estimate 140% above its current price, supported by strong fundamentals including a high ROIC exceeding its cost of capital by 8.1 points. The company exhibits robust free cash flow metrics and a bullish fundamental score of 89, indicating solid financial health and growth potential.
Key Risk
A deteriorating narrative trend could signal emerging challenges that may impact Zoom's valuation and growth prospects.
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: 18.41%5 Year CAGR: 5.98%

Free Cash Flow (in millions)

TTM202520242023202220212020201920182017
$2,082$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. provides a robust platform for enhancing communication and fostering collaboration. The company's global reach is organized into three primary operational regions: the Americas, the Asia Pacific, and Europe, the Middle East, and Africa (EMEA). Eric S. Yuan founded the enterprise in 2011, and its corporate headquarters are situated in San Jose, California.