ZM valuation

Bear, I would suggest you do that exercise for ZM making adjustments for growth rate (higher multiple on FCF if growth is above 25%), margins (higher multiple on FCF if gross margins are above the 82% that CRM has), and FCF margins (higher multiple on FCF if the FCF is above 20% as it is for CRM).

Or we could just compare ZM to CRM directly. My only point was it’s not particularly comparable to VZ or T.

CRM TTM revenue: ~20 billion
CRM Mkt Cap: $140 billion

ZM TTM revenue: 623 million
ZM Mkt Cap: $42 billion

Bear
~11% position in ZM (but short 4/17 call options at $150 and $160)

2 Likes