A popular way to gauge a stock's volatility is its 'beta'.īeta is a measure of a share's volatility in relation to the market.

Over the last 12 months, Zoom's shares have ranged in value from as little as $70.435 up to $291.31. However, you can browse other dividend-paying shares in our guide. Typically it's companies that have been around for longer that pay dividends (Zoom had its IPO on 17 April 2019). We're not expecting Zoom to pay a dividend over the next 12 months. The EBITDA is a measure of a Zoom's overall financial performance and is widely used to measure a its profitability. Zoom's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $908.9 million (£0.0 million).

By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies. The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Zoom's future profitability. Higher PEG ratios such as this can be interpreted as meaning the shares offer worse value given the current rate of growth.

Zoom's 'price/earnings-to-growth ratio' can be calculated by dividing its P/E ratio by its growth – to give 11.1441. The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued. That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). In other words, Zoom shares trade at around 23x recent earnings. Zoom's current share price divided by its per-share earnings (EPS) over a 12-month period gives a 'trailing price/earnings ratio' of roughly 23x. However, analysts commonly use some key metrics to help gauge value. Valuing a stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of overall performance. If you’re not sure which investments are right for you, please seek out a financial adviser. Past performance is no guarantee of future results. The value of your investments can go up and down, and you may get back less than you invest. All investing should be regarded as longer term.

Should i buy zoom stock