Zscaler, Inc.

LSE:0XVU Stock Report

Market Cap: US$32.1b

Zscaler Valuation

Is 0XVU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0XVU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$314.34
Fair Value
33.3% undervalued intrinsic discount
41
Number of Analysts

Below Fair Value: 0XVU ($209.6) is trading below our estimate of fair value ($314.34)

Significantly Below Fair Value: 0XVU is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0XVU?

Key metric: As 0XVU is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 0XVU. This is calculated by dividing 0XVU's market cap by their current revenue.
What is 0XVU's PS Ratio?
PS Ratio14.1x
SalesUS$2.30b
Market CapUS$32.11b

Price to Sales Ratio vs Peers

How does 0XVU's PS Ratio compare to its peers?

The above table shows the PS ratio for 0XVU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average11.8x
SGE Sage Group
5.6x8.1%UK£13.0b
CNS Corero Network Security
4.6x12.7%UK£88.3m
CYBR CyberArk Software
20.6x18.8%US$18.8b
MNDY monday.com
16.3x18.7%US$16.3b
0XVU Zscaler
14.1x16.1%US$32.1b

Price-To-Sales vs Peers: 0XVU is expensive based on its Price-To-Sales Ratio (14.1x) compared to the peer average (11.8x).

Price to Sales Ratio vs Industry

How does 0XVU's PS Ratio compare vs other companies in the GB Software Industry?

12 CompaniesPrice / SalesEstimated GrowthMarket Cap
RM. RM
0.5x0.3%US$113.96m
SWG Shearwater Group
0.4x19.4%US$10.38m
PEG Petards Group
0.5x30.4%US$5.67m
MBO MobilityOne
0.01xn/aUS$2.84m
0XVU 14.1xIndustry Avg. 2.4xNo. of Companies12PS0246810+
12 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0XVU is expensive based on its Price-To-Sales Ratio (14.1x) compared to the UK Software industry average (2.4x).

Price to Sales Ratio vs Fair Ratio

What is 0XVU's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0XVU PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio14.1x
Fair PS Ratio18x

Price-To-Sales vs Fair Ratio: 0XVU is good value based on its Price-To-Sales Ratio (14.1x) compared to the estimated Fair Price-To-Sales Ratio (18x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0XVU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$209.60
US$226.40
+8.0%
8.9%US$270.00US$180.00n/a41
Feb ’26US$203.33
US$226.04
+11.2%
9.0%US$270.00US$180.00n/a41
Jan ’26US$179.93
US$225.77
+25.5%
9.0%US$270.00US$180.00n/a41
Dec ’25US$206.59
US$220.15
+6.6%
10.8%US$270.00US$177.00n/a41
Nov ’25US$182.66
US$213.43
+16.8%
11.6%US$270.00US$165.00n/a40
Oct ’25US$167.45
US$214.54
+28.1%
11.5%US$270.00US$165.00n/a39
Sep ’25US$198.44
US$231.10
+16.5%
11.8%US$290.00US$180.00n/a39
Aug ’25US$173.56
US$230.08
+32.6%
12.2%US$290.00US$180.00n/a39
Jul ’25US$197.30
US$229.92
+16.5%
12.2%US$290.00US$180.00n/a39
Jun ’25US$167.07
US$233.19
+39.6%
13.0%US$290.00US$180.00n/a40
May ’25US$173.36
US$258.52
+49.1%
9.1%US$310.00US$213.00n/a41
Apr ’25US$192.46
US$259.48
+34.8%
8.9%US$310.00US$213.00n/a40
Mar ’25US$219.72
US$257.92
+17.4%
9.5%US$310.00US$210.90n/a39
Feb ’25US$237.99
US$241.85
+1.6%
12.7%US$311.00US$183.00US$203.3341
Jan ’25US$222.45
US$221.54
-0.4%
11.0%US$275.00US$180.00US$179.9339
Dec ’24US$198.21
US$205.32
+3.6%
8.1%US$229.00US$165.00US$206.5938
Nov ’24US$155.30
US$184.83
+19.0%
10.1%US$225.00US$134.29US$182.6639
Oct ’24US$155.91
US$181.26
+16.3%
8.9%US$225.00US$134.29US$167.4539
Sep ’24US$157.30
US$168.32
+7.0%
12.2%US$225.00US$120.00US$198.4439
Aug ’24US$163.46
US$167.85
+2.7%
12.7%US$225.00US$120.00US$173.5638
Jul ’24US$148.09
US$168.06
+13.5%
12.6%US$225.00US$120.00US$197.3037
Jun ’24US$136.95
US$152.45
+11.3%
18.3%US$225.00US$120.00US$167.0737
May ’24US$89.70
US$153.83
+71.5%
18.2%US$225.00US$115.00US$173.3638
Apr ’24US$116.44
US$155.09
+33.2%
17.2%US$225.00US$120.00US$192.4638
Mar ’24US$128.79
US$165.71
+28.7%
18.9%US$275.00US$120.00US$219.7237
Feb ’24US$125.13
US$166.14
+32.8%
19.5%US$275.00US$115.00US$237.9938
Analyst Price Target
Consensus Narrative from 41 Analysts
US$224.75
Fair Value
6.7% undervalued intrinsic discount
41
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/12 00:28
End of Day Share Price 2025/02/12 00:00
Earnings2024/10/31
Annual Earnings2024/07/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Zscaler, Inc. is covered by 66 analysts. 43 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Shrenik KothariBaird
Ishan MajumdarBaptista Research
Saket KaliaBarclays