TGM's two-stage DCF values Zoom Communications, Inc. (ZM) between $75.50 and $127.32 depending on assumptions, with a base case of $96.69. 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 (9.3%) reflects its beta.
What would today's price require?
$96.18 is justified only if free cash flow grows about +4.6% a year (fading to 2.5% long-run) at a 9.3% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 1.7%/yr | 10.3% | $75.50 |
| Base case | 4.7%/yr | 9.3% | $96.69 |
| Optimistic | 7.7%/yr | 8.3% | $127.32 |
| Third-party model estimate (FMP) | independent reference · retrieved Sep 10, 2026 · assumptions not provided | $93.21 | |
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
$96.18
Market-Implied Growth
+4.6%/yr
vs +2.9% 5Y actual
Model Scenario Range
$75.50 – $127.32
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
$96.69
+0.5% vs $96.18
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 4.7%/yr FCF growth and 10-year horizon fixed. Green = above today's $96.18; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 7.3% | $117 | $125 | $136 | $149 | $165 |
| 8.3% | $99.73 | $106 | $113 | $121 | $131 |
| 9.3% | $87.27 | $91.66 | $96.69 | $103 | $109 |
| 10.3% | $77.65 | $80.97 | $84.70 | $88.93 | $93.79 |
| 11.3% | $70.00 | $72.58 | $75.44 | $78.64 | $82.24 |
