Is Zoom Communications, Inc. (ZM) Undervalued?
Based on the current stock price of $88.04 and a P/E ratio of 17.13,Zoom Communications, Inc. has a PEG ratio of 2.22.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 2.22, ZM appears to be potentially overvalued relative to its growth rate of 7.72%.
Based on a PEG ratio of 2.22 (adjusted for dividends).
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How we analyzed ZM
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 17.13and dividing it by the annual growth rate of 7.72%.
PEG = 17.13 (P/E) ÷ 7.72 (Growth) = 2.22
Frequently Asked Questions about ZM
What is the current PEG Ratio for Zoom Communications, Inc. (ZM)?+
The current PEG Ratio for Zoom Communications, Inc. is 2.22. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is ZM stock undervalued right now?+
Based on the PEG ratio of 2.22, Zoom Communications, Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for ZM?+
The PEGY ratio for Zoom Communications, Inc. is 2.22. This metric accounts for dividend yield (0.00%), providing a more complete valuation picture.