The Enterprise Value Investment under Covid-19 - Zoom as An Example

Abstract

It is no doubt that COVID-19 negatively influenced the economy around the world, but some companies were still benefiting from this economic disaster. Analyzing good operative companies during the pandemic will help people to better identify the capabilities of companies, and also assists to make more appropriate investment choices. Therefore, this essay selects Zoom as an example, which performed outstandingly in the cloud communications industry over COVID-19. Aiming to present comprehensive information and clearly evaluate the performance of Zoom, this paper will primarily analyze it using qualitative and quantitative methods. On the one hand, use the SWOT model to assess its internal resources and external environment. On the other hand, measure profitability and solvency through financial indicators, while utilizing stock indicators to have a valuation of Zoom. Based on all the analysis, it is worth recognizing that the strategy of Zoom is mainly growth-oriented. The strategy of insisting on developing product diversity with a customer focus will help the future growth of Zoom, but the pressure from the drawbacks of Zoom software and fierce competition can not be ignored and requires Zoom to handle them quickly. Besides, even though the stock index reflects Zoom is undervalued, Zoom also maintains strong profitability and solvency. Given that, it can be concluded that Zoom still has relatively good investment value during COVID-19, but the specific investment should be judged based on the subsequent development of Zoom.