If Zoom were to report $4.5B in revenue next year, I would expect them to trade around 35x sales. That would be pretty reasonable given their growth and incredible profitability. This would give them a market cap of $158B, which is up about 32% from today's market cap of $119B. Nothing compared to the returns seen this year, but I won't sneeze at a 32% return. Anyways, I just found the growth of $115M sequentially to be pretty interesting and believe it gives us a baseline to drive assumptions for next year. What say you? -- Rex

It seems pretty darn hard to predict next year's revenue for ZM, but let me use some of your assumptions (as I understand them) and overlay my own viewpoint.

I would take your expected end-of-year revenue run rate, NOT the total year's revenue (looking at THIS conservative version of your work):

            Q1	    Q2	    Q3	      Q4       FY 
Revenue          $1,007   $1,122   $1,237   $1,352   $4,718 

..... and I'd say the end-of-year revenue run rate is about $5.4B.... and I'd say a PS of 40-45 is still not unreasonable. That puts the market cap at $215B - $245B.

That's roughly DOUBLE CURRENT VALUE.

Only crazy people (like me) think that's reasonable. And I'll give it a bit of consideration as to whether I need to buy more ZM (Deep thought....ummm....YEAH! Me buy more!). After all, I'm an old retired geezer and I have to consider the future. ;)

Rob
Rule Breaker Home Fool & STMP/MTH Maintenance Coverage Fool
He is no fool who gives what he cannot keep to gain what he cannot lose.