ZM Stock Risk & Deep Value Analysis
Zoom Communications Inc
Technology • Software - Application
DVR Score
out of 10
The Bottom Line on ZM
We analyzed Zoom Communications Inc using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran ZM through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Here's what we found.
📈ZM Performance Overview3yr weekly
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Weekly adjusted close · Quarterly revenue & EPS · DVR score history
ZM Stock Risk Analysis
Overall Risk
Moderate
Financial Risk
Low
Market Risk
Medium
About Zoom Communications Inc (ZM)
Sector
Technology
Industry
Software - Application
Market Cap Category
large
Market Cap
$23.78B
ZM Deep Value Analysis
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ZM Red Flags & Warning Signs
- ⚠
Aggressive bundling and pricing by Microsoft Teams or Google Workspace
- ⚠
Slower-than-expected adoption of Zoom Phone or Contact Center
- ⚠
Economic downturn impacting enterprise IT spending
- ⚠
Commoditization of core video conferencing services
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ZM Financial Health Metrics
Market Cap
$23.78B
P/E Ratio
20.68
ZM Competitive Moat Analysis
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Narrow
Moat Trend
Eroding
Moat Sources
3 Identified
Zoom's moat is durable in its core video conferencing product due to strong brand and established user base, particularly in enterprise. However, its strength is eroding as competitors like Microsoft bundle similar features and leverage existing enterprise relationships. The moat in newer product lines is still forming and highly contested.
ZM Competitive Moat Analysis
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ZM Catalysts & Growth Drivers
Near-Term (0-6 months)
- •Q1 FY2027 Earnings Report (Estimated late May 2026)
- •Zoomtopia 2026 announcements (new product features, partnerships)
- •Updates on AI Companion monetization and adoption rates
Medium-Term (6-18 months)
- •Accelerated enterprise adoption of Zoom Phone and Contact Center
- •Expansion of strategic partnerships with system integrators or cloud providers
- •Successful market penetration into new geographic regions
Long-Term (18+ months)
- •Successful transformation into a comprehensive 'Workplace' communications and collaboration platform
- •Sustained market share gains in UCaaS and CCaaS against entrenched competitors
- •Disruptive integration of advanced AI beyond current companion features
Catalysts & Growth Drivers
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ZM Bull Case: What Could Go Right
- ✓
Sustained acceleration in Zoom Phone and Contact Center ARR growth rates (e.g., above 15% YoY)
- ✓
Significant, measurable market share gains in UCaaS/CCaaS, indicating successful displacement of incumbents
- ✓
Robust and clear monetization pathways and adoption rates for AI Companion features
- ✓
Evidence of margin compression due to competitive pricing pressures
- ✓
Increased customer churn, particularly among enterprise clients.
Bull Case Analysis
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FAQ
What is the DVR Score for Zoom Communications Inc (ZM)?
As of March 13, 2026, Zoom Communications Inc has a DVR Score of 1.8 out of 10, placing it in the "Distressed" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Zoom Communications Inc?
Zoom Communications Inc's market capitalization is approximately $23.8B. The company operates in the Technology sector within the Software - Application industry.
What ticker symbol does Zoom Communications Inc use?
ZM is the ticker symbol for Zoom Communications Inc. The company trades on the NMS.
What is the risk level for ZM stock?
Our analysis rates Zoom Communications Inc's overall risk as Moderate. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of ZM?
Zoom Communications Inc currently has a price-to-earnings (P/E) ratio of 20.7. This is in line with broader market averages.
How often is the ZM DVR analysis updated?
Our AI-powered analysis of Zoom Communications Inc is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on March 13, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research and consult with a qualified financial advisor.