ZM ZM

Name: ZM Crucible Score
Creator: Kaladin Capital Intelligence

UnknownUnknownN/A📅 Scored March 23, 2026

Price at analysis: $78.11

Crucible Score

72.2

Quality × Value Composite

KQI — Quality

65.5

B-

Fundamental Quality Index

KVI — Value

80.4

A-

Valuation Attractiveness Index

Crucible Verdict — ZM

Zoom Video Communications delivers solid fundamentals with a strong competitive moat (86) and exceptional earnings consistency, but growth has stagnated (55) and the business lacks diversification (32). ZM trades at a 15% discount to fair value despite reliable execution under long-tenured CEO Eric Yuan. The company's post-pandemic transition will determine whether it can reignite growth beyond its core video conferencing franchise.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality

75.5

Growth Profile⚠

54.8

Moat Durability

85.8

Management Effectiveness

48.1

Diversification & Resilience

32.2

Market Position

62.0

Weakest dimension: Diversification & Resilience (32.2)

◆ KVI Value Dimensions

DCF Margin of Safety

63.1

FCF Yield & Cash Returns

91.4

Relative Valuation

85.3

Growth-Adjusted Value

86.5

Historical Valuation

86.4

Macro Context

95.0

◆ DCF Valuation Scenarios

Bear Case

$58.42

Base Case

$89.53

Bull Case

$134.18

Price at Analysis

$78.11

Scenario	Fair Value	Rev CAGR (5yr)	Terminal Margin	WACC
🔴 Bear	$58.42	3.0%	18.0%	10.2%
🟢 Base	$89.53	5.5%	22.0%	9.7%
🟢 Bull	$134.18	8.0%	27.0%	9.2%

Key Assumptions: ZM revenue growth has been low single digits (1-6% range) over the trailing period with operating margins volatile between 5.6% and 25.9%, reflecting post-pandemic normalization. Base case assumes modest mid-single-digit growth as Zoom stabilizes its enterprise platform and AI features drive incremental adoption, with operating margins settling around 22% as the company balances reinvestment with profitability. FCF conversion remains strong given the asset-light model with capex consistently under 3% of revenue; WACC of ~9.7% reflects the risk-free rate of 4.39% plus beta of 0.97 times a 5.5% equity risk premium.

◆ Financial Snapshot

Profitability

Gross Margin77.0%

Operating Margin23.1%

Net Margin39.0%

ROIC8.4%

ROE-30.0%

Balance Sheet

Balance SheetCR: 4.33

Cash ConversionFCF/EPS: 1.01x

Capital IntensityCapex/Rev: 1.3%

Altman Z-Score8.55 (Safe)

Piotroski F-Score6/9 (Good)

Growth

Revenue CAGR4.4% CAGR

Earnings CAGR8.4% CAGR

Growth ConsistencyCV: 1.19

Segment BreadthInsufficient segments

Quarterly TrendMargin↑, WC↓, Exp↓

Earnings CredibilityConsistent Beater

◆ Analyst Consensus & Leadership

Leadership & Governance

CEOEric S. Yuan · 15 years

CEO Ownership43.3%

Compensation29% performance-based

Insider ActivitySelling

Capital AllocationROIC 8.4% vs WACC 9.8%

Earnings Beat Rate94% (21/22)

◆ Related Companies in Our Universe

Other Unknown companies scored by the Crucible:

ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+

Methodology All Scores Crucible Briefs Performance @KaladinCI

Analysis conducted March 23, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.