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    Zoom (ZM) Stock May Be 37% Undervalued After AI Revenue OS Launch

    Simply Wall St·09/25/2026 13:23:15
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    Zoom Communications has seen a sharp reset in its share price over the past five years, which puts fresh focus on what investors are really paying for today. With the stock now around US$90.35, the key question is how well that price aligns with the cash Zoom can generate over time.

    • The share price has declined 66.2% over the past 5 years, which puts the whole investment case under the spotlight of what its cash flows are truly worth.
    • The launch of Zoom's AI-powered revenue OS and related tools may support expectations for future monetisation and cash generation if customers adopt these products at scale.
    • If you'd rather focus on earnings, this one's for you. See what Zoom Communications's 8.1x P/E says about the price.

    For investors, the debate is whether Zoom Communications' current market value is adequately supported by its cash flows when assessed against an intrinsic value estimate based on Discounted Cash Flow.

    If you are comparing Zoom Communications with other AI focused opportunities, it can help to evaluate it alongside 36 AI small caps.

    Does Zoom Communications Look Undervalued on Cash Flow?

    The Discounted Cash Flow (DCF) model here looks at the cash Zoom Communications can return to shareholders over time. Latest twelve month free cash flow sits around $1.89b, and the projections used in this 2 Stage Free Cash Flow to Equity model assume those cash flows continue growing from that base rather than shrinking.

    On those cash flow estimates, the DCF calculation indicates an intrinsic value that is substantially above the current share price of $90.35. The recent launch of Zoom's AI powered revenue OS provides a specific growth angle for those projected cash flows, although the model still rests on the view that this platform and related tools will be adopted at scale. The gap between what the DCF implies and where the stock trades is particularly relevant for investors who focus on cash generation rather than headline earnings. Find out what Zoom Communications could be worth using our Discounted Cash Flow (DCF) estimate.

    The Zoom Communications Narrative: What Would Justify Today's Price?

    Narratives on Simply Wall St take the valuation puzzle around Zoom Communications and spell out which future paths for growth, margins and earnings would need to play out for the stock to be worth meaningfully more or less than it is today, all in one place on the Community page.

    Each scenario links its number to a specific view on where Zoom Communications' expansion prospects, profitability and key risks might head next. This gives you something concrete to revisit as new information appears.

    One of the top community narratives on Zoom Communications: 24% undervalued

    "Strong enterprise adoption of AI-driven collaboration tools and unified communications is broadening Zoom's market reach, leading to more stable, recurring, and diversified revenue streams..."

    Discover why this Narrative puts Zoom Communications at 24% undervalued.

    One more angle on Zoom Communications that deserves your attention

    Before you weigh Zoom Communications purely on cash flows and growth stories, it is worth checking the specific risk checks that recent research has flagged for this business. Take a closer look at 3 warning signs (2 major) before settling on a valuation.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.