/
DCF Valuation
Base-case fair value
$126.66
Intrinsic $168.88 · 25% MOS
Current price: $89.22
Base-case summary
Our base-case DCF for Zoom Communications, Inc. (ZM) projects 10 years of free cash flow growth at 5.9% for years 1–5 and 3.0% for years 6–10, anchored to 5.9% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $2.0B in trailing free cash flow, this produces an intrinsic value of $168.88 per share. A 25% safety margin gives a fair value of $126.66, suggesting the stock is currently 42% undervalued against the $89.22 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$2.0B
Cash & equivalents
$7.7B
Total debt
$60M
Shares outstanding
300M