Is Zoom Video Communications, Inc. overvalued or undervalued?

As of 21 August 2025, the valuation grade for Zoom Video Communications, Inc. has moved from attractive to very attractive, indicating a stronger outlook for the company. Based on the current metrics, the company appears undervalued, particularly when considering its P/E ratio of 23, EV to EBITDA of 15.67, and a PEG ratio of 1.37, which suggest potential for growth relative to its price.
In comparison to peers, Zoom's P/E ratio of 21.43 is significantly lower than Veeva Systems, Inc. at 55.64, which is classified as expensive, and Take-Two Interactive Software, Inc. with a risky valuation and a P/E of -90.83. Despite a challenging long-term performance with a 5-year return of -80.21%, Zoom has outperformed the S&P 500 over the past year with a return of 31.48% compared to the index's 17.14%, reinforcing its attractive valuation in the current market context.