Zscaler Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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.

Below Fair Value: 0XVU ($174.67) is trading below our estimate of fair value ($285.32)

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?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 0XVU. This is calculated by dividing 0XVU's market cap by their current preferred multiple.
What is 0XVU's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	US$26.52b

0XVU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	11.7x
Enterprise Value/EBITDA	-281x
PEG Ratio	n/a

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.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	7.5x
SGE Sage Group	4.4x	7.7%	UK£10.0b
BLTG Blancco Technology Group	3.9x	9.7%	UK£173.0m
CNS Corero Network Security	5.4x	12.2%	UK£98.6m
MNDY monday.com	16.4x	20.6%	US$13.8b
0XVU Zscaler	12.2x	16.3%	US$26.5b

Price-To-Sales vs Peers: 0XVU is expensive based on its Price-To-Sales Ratio (12.2x) compared to the peer average (8.7x).

Price to Earnings Ratio vs Industry

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

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	21.5%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	21.5%
	n/a	n/a	n/a

No more companies

Price-To-Sales vs Industry: 0XVU is expensive based on its Price-To-Sales Ratio (12.2x) compared to the UK Software industry average (2x).

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 Ratio	12.2x
Fair PS Ratio	15.4x

Price-To-Sales vs Fair Ratio: 0XVU is good value based on its Price-To-Sales Ratio (12.2x) compared to the estimated Fair Price-To-Sales Ratio (15.4x).

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.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	US$174.67	US$214.28 +22.7%	11.4%	US$270.00	US$165.00	n/a	39
Sep ’25	US$198.44	US$231.10 +16.5%	11.8%	US$290.00	US$180.00	n/a	39
Aug ’25	US$173.56	US$230.08 +32.6%	12.2%	US$290.00	US$180.00	n/a	39
Jul ’25	US$197.30	US$229.92 +16.5%	12.2%	US$290.00	US$180.00	n/a	39
Jun ’25	US$167.07	US$233.19 +39.6%	13.0%	US$290.00	US$180.00	n/a	40
May ’25	US$173.36	US$258.52 +49.1%	9.1%	US$310.00	US$213.00	n/a	41
Apr ’25	US$192.46	US$259.48 +34.8%	8.9%	US$310.00	US$213.00	n/a	40
Mar ’25	US$219.72	US$257.92 +17.4%	9.5%	US$310.00	US$210.90	n/a	39
Feb ’25	US$237.99	US$241.85 +1.6%	12.7%	US$311.00	US$183.00	n/a	41
Jan ’25	US$222.45	US$221.54 -0.4%	11.0%	US$275.00	US$180.00	n/a	39
Dec ’24	US$198.21	US$205.32 +3.6%	8.1%	US$229.00	US$165.00	n/a	38
Nov ’24	US$155.30	US$184.83 +19.0%	10.1%	US$225.00	US$134.29	n/a	39
Oct ’24	US$155.91	US$181.26 +16.3%	8.9%	US$225.00	US$134.29	US$167.45	39
Sep ’24	US$157.30	US$168.32 +7.0%	12.2%	US$225.00	US$120.00	US$198.44	39
Aug ’24	US$163.46	US$167.85 +2.7%	12.7%	US$225.00	US$120.00	US$173.56	38
Jul ’24	US$148.09	US$168.06 +13.5%	12.6%	US$225.00	US$120.00	US$197.30	37
Jun ’24	US$136.95	US$152.45 +11.3%	18.3%	US$225.00	US$120.00	US$167.07	37
May ’24	US$89.70	US$153.83 +71.5%	18.2%	US$225.00	US$115.00	US$173.36	38
Apr ’24	US$116.44	US$155.09 +33.2%	17.2%	US$225.00	US$120.00	US$192.46	38
Mar ’24	US$128.79	US$165.71 +28.7%	18.9%	US$275.00	US$120.00	US$219.72	37
Feb ’24	US$125.13	US$166.14 +32.8%	19.5%	US$275.00	US$115.00	US$237.99	38
Jan ’24	US$111.05	US$179.26 +61.4%	17.2%	US$275.00	US$135.00	US$222.45	36
Dec ’23	US$143.10	US$199.74 +39.6%	15.6%	US$280.00	US$155.00	US$198.21	35
Nov ’23	US$150.50	US$211.86 +40.8%	11.9%	US$280.00	US$160.00	US$155.30	35
Oct ’23	US$169.24	US$212.26 +25.4%	11.6%	US$280.00	US$165.00	US$155.91	31

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.