Zoom Communications SOTP FCF Yield Valuation

Zoom Video Communications Inc. (ZM)
By@hypertonx
Assumptions as of 2026-08-26
USD
Updated Sep 10, 2026 · Revised 2 times
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Zoom Communications SOTP FCF Yield Valuation

Sum-of-the-parts valuation for Zoom Communications after Q2 FY2027 results. The operating business is valued by capitalizing FY2027 free cash flow guidance after an estimated after-tax interest-income haircut, so cash and marketable securities are not double counted. Non-operating assets are then added separately: cash and marketable securities, the Anthropic preferred stock stake implied from Zoom's latest disclosed carrying value, and other strategic investments at carrying value. The model assumes no debt adjustment and gives no credit for future share repurchases beyond the updated guided share count.

as of 2026-08-26

Fair value
$124.43
Upside/downside
27.3%
Operating business value ($M)
26,417
Interest-adjusted FCF ($M)
1,585
Anthropic total valuation ($M)
965,000
Zoom Anthropic stake %
0.325%
Anthropic stake value ($M)
3,135
Target FCF yield
6.0%

Anthropic stake

965,000$M
0.325%

Market

$97.74$/share
Latest ZM quote · updated Oct 9, 2026 2:00 PM MDT

Non-operating assets

7,250$M
651$M

Operating business

215$M
1,800$M
6.0%

Share count

301M shares

Sources

  1. September 10 Modeledge reference share price $95.46; market price alone is not used to revise operating forecasts. (accessed 2026-09-10)
  2. September 9 conference reiterated 40.7% FY2027 operating-margin guidance and the long-term 80% gross-margin objective; consumption AI remains small and October Investor Day is expected to provide longer-term guidance. No revised FCF or Anthropic carrying value was disclosed; preserve the existing SOTP. — modeledge.ai (accessed 2026-09-10)
  3. Zoom Q2 FY2027 revenue was $1.277B, Enterprise revenue grew 7.8%, free cash flow was $472.4M, and FY2027 FCF guidance was raised to $1.780-$1.820B with about 301M diluted shares. — investors.zoom.us (accessed 2026-08-26)
  4. As of July 31, 2026, Zoom had $932.0M cash and cash equivalents and $6.318B marketable securities. — investors.zoom.us (accessed 2026-08-26)
  5. As of July 31, 2026, strategic investments totaled $3.786B, including $3.1345B of Anthropic preferred stock; Q2 included a $1.6127B unrealized gain on the Anthropic investment. — investors.zoom.us (accessed 2026-08-26)
  6. Zoom's Q2 FY2027 earnings deck reported 4.9% total revenue growth, 7.8% Enterprise revenue growth, $472M quarterly FCF, and $1.780-$1.820B FY2027 FCF guidance. — investors.zoom.us (accessed 2026-08-26)
  7. Anthropic announced a $65B Series H financing at a $965B post-money valuation on May 28, 2026. — anthropic.com (accessed 2026-08-26)

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