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 10.7822.

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.

How to buy zoom stock