TGM's two-stage DCF values Zoom Communications, Inc. (ZM) between $81.58 and $138.68 depending on assumptions, with a base case of $104.87. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (9.2%) reflects its beta.
What would today's price require?
$87.99 is justified only if free cash flow grows about +2.0% a year (fading to 2.5% long-run) at a 9.2% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 3.4%/yr | 10.2% | $81.58 |
| Base case | 6.4%/yr | 9.2% | $104.87 |
| Optimistic | 9.4%/yr | 8.2% | $138.68 |
| Third-party model estimate (FMP) | independent reference · retrieved Jul 25, 2026 · assumptions not provided | $97.92 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$87.99
Market-Implied Growth
+2.0%/yr
vs +4.3% 5Y actual
Model Scenario Range
$81.58 – $138.68
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for ZM (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $1.6B · 0.29B shares · net cash $1.3B
Estimated Fair Value
$104.87
+19.2% vs $87.99
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 6.4%/yr FCF growth and 10-year horizon fixed. Green = above today's $87.99; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 7.2% | $127 | $137 | $149 | $163 | $182 |
| 8.2% | $108 | $115 | $123 | $132 | $144 |
| 9.2% | $94.36 | $99.25 | $105 | $111 | $119 |
| 10.2% | $83.69 | $87.37 | $91.53 | $96.25 | $102 |
| 11.2% | $75.24 | $78.09 | $81.26 | $84.82 | $88.83 |
