MeritValue

Zoom Communications, Inc.

ZMdata completeness 88%9 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'interestExpense'

The thesis, from the filings

Zoom Communications, Inc. earns about 14% on invested capital, comfortably above its ~9% cost of capital, with a roughly flat share count — a real edge showing up in the numbers. The estimate methods put fair value between $34.06 and $159.26 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$4.1B1$4.39B2$4.53B3$4.67B3$4.87B3
Net income$1.38B4$103.7M5$637.5M6$1.01B6$1.9B6
Operating cash flow$1.61B7$1.29B8$1.6B9$1.95B9$1.99B9
Capital expenditure$132.6M10$103.8M11$127M12$136.6M12$65M12
Free cash flow (derived)$1.47B7$1.19B8$1.47B9$1.81B9$1.92B9
Total debt—————
Cash & equivalents$1.06B13$1.09B14$1.56B15$1.35B15$1.27B15
Diluted shares305.8M304.2M308.5M315.1M307.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$319.14
your share of equity
Profit it earned you last year
$61.83
Free cash flow it threw off
$62.61
Debt you’d be carrying
—

10 shares is a claim on $319.14 of net worth that earned you $61.83 and generated $62.61 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
14% avg · 5y
FY22 23%FY23 2%FY24 10%FY25 13%FY26 22%

It earned about 14% on invested capital against a ~9% cost of capital — comfortably above the cost of funding, a moderate advantage.

seeing a moat in the numbers →
Management signal · capital allocation
+0% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $34.06 and $159.26 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$159.26
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth9.1%
  • fcfBase$1.81B
DCF · Growth Exit 5Y
$128.45
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth9.1%
  • fcfBase$1.81B
Earnings Power Value
$34.06
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$1.01B
  • growthAssumed0.0%
Graham Number
$66.62
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years9.1%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $128.45
The three cases
Bear0.0%$88.23
Base9.1%$128.45
Bull14.1%$156.56

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 9.1%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2022-01-31 · accession 0001585521-24-000030 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-01-31 · accession 0001585521-25-000042 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-01-31 · accession 0001585521-26-000030 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-01-31 · accession 0001585521-24-000030 (NetIncomeLoss)
  5. 10-K · period ending 2023-01-31 · accession 0001585521-25-000042 (NetIncomeLoss)
  6. 10-K · period ending 2024-01-31 · accession 0001585521-26-000030 (NetIncomeLoss)
  7. 10-K · period ending 2022-01-31 · accession 0001585521-24-000030 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-01-31 · accession 0001585521-25-000042 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-01-31 · accession 0001585521-26-000030 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-01-31 · accession 0001585521-24-000030 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-01-31 · accession 0001585521-25-000042 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2024-01-31 · accession 0001585521-26-000030 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-01-31 · accession 0001585521-24-000030 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2023-01-31 · accession 0001585521-25-000042 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2024-01-31 · accession 0001585521-26-000030 (CashAndCashEquivalentsAtCarryingValue)