Zscaler, Inc.

NasdaqGS:ZS Stock Report

Market Cap: US$31.2b

Zscaler Valuation

Is ZS 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 ZS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ZS ($200.94) is trading below our estimate of fair value ($281.77)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for ZS. This is calculated by dividing ZS's market cap by their current revenue.
What is ZS's PS Ratio?
PS Ratio14.1x
SalesUS$2.17b
Market CapUS$31.16b

Price to Sales Ratio vs Peers

How does ZS's PS Ratio compare to its peers?

The above table shows the PS ratio for ZS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average14.6x
MNDY monday.com
14.3x20.9%US$12.8b
CRWD CrowdStrike Holdings
24.4x18.2%US$86.6b
GEN Gen Digital
4.7x2.6%US$18.0b
GTLB GitLab
15x18.2%US$9.8b
ZS Zscaler
14.1x16.2%US$31.2b

Price-To-Sales vs Peers: ZS is good value based on its Price-To-Sales Ratio (14.1x) compared to the peer average (14.6x).

Price to Sales Ratio vs Industry

How does ZS's PS Ratio compare vs other companies in the US Software Industry?

81 CompaniesPrice / SalesEstimated GrowthMarket Cap
VYX NCR Voyix
0.6x-23.2%US$2.04b
PGY Pagaya Technologies
0.7x15.8%US$634.91m
XPER Xperi
0.8x1.8%US$378.82m
EGHT 8x8
0.5x1.1%US$351.48m
ZS 14.1xIndustry Avg. 5.1xNo. of Companies81PS048121620+
81 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ZS is expensive based on its Price-To-Sales Ratio (14.1x) compared to the US Software industry average (5.1x).

Price to Sales Ratio vs Fair Ratio

What is ZS'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.

ZS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio14.1x
Fair PS Ratio11.6x

Price-To-Sales vs Fair Ratio: ZS is expensive based on its Price-To-Sales Ratio (14.1x) compared to the estimated Fair Price-To-Sales Ratio (11.6x).

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 ZS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$200.94
US$216.91
+7.9%
10.5%US$270.00US$177.00n/a41
Nov ’25US$182.59
US$213.43
+16.9%
11.6%US$270.00US$165.00n/a40
Oct ’25US$166.99
US$214.54
+28.5%
11.5%US$270.00US$165.00n/a39
Sep ’25US$199.98
US$231.10
+15.6%
11.8%US$290.00US$180.00n/a39
Aug ’25US$174.44
US$230.08
+31.9%
12.2%US$290.00US$180.00n/a39
Jul ’25US$198.62
US$229.92
+15.8%
12.2%US$290.00US$180.00n/a39
Jun ’25US$169.96
US$233.19
+37.2%
13.0%US$290.00US$180.00n/a40
May ’25US$172.31
US$258.52
+50.0%
9.1%US$310.00US$213.00n/a41
Apr ’25US$192.13
US$259.48
+35.1%
8.9%US$310.00US$213.00n/a40
Mar ’25US$219.23
US$257.92
+17.6%
9.5%US$310.00US$210.90n/a39
Feb ’25US$238.06
US$241.85
+1.6%
12.7%US$311.00US$183.00n/a41
Jan ’25US$221.56
US$221.54
-0.01%
11.0%US$275.00US$180.00n/a39
Dec ’24US$198.03
US$205.32
+3.7%
8.1%US$229.00US$165.00n/a38
Nov ’24US$156.65
US$184.83
+18.0%
10.1%US$225.00US$134.29US$182.5939
Oct ’24US$155.59
US$181.26
+16.5%
8.9%US$225.00US$134.29US$166.9939
Sep ’24US$158.38
US$168.32
+6.3%
12.2%US$225.00US$120.00US$199.9839
Aug ’24US$162.80
US$167.85
+3.1%
12.7%US$225.00US$120.00US$174.4438
Jul ’24US$146.30
US$168.06
+14.9%
12.6%US$225.00US$120.00US$198.6237
Jun ’24US$135.09
US$152.45
+12.9%
18.3%US$225.00US$120.00US$169.9637
May ’24US$88.74
US$153.83
+73.3%
18.2%US$225.00US$115.00US$172.3138
Apr ’24US$116.83
US$155.09
+32.7%
17.2%US$225.00US$120.00US$192.1338
Mar ’24US$128.44
US$165.71
+29.0%
18.9%US$275.00US$120.00US$219.2337
Feb ’24US$131.52
US$166.14
+26.3%
19.5%US$275.00US$115.00US$238.0638
Jan ’24US$111.90
US$179.26
+60.2%
17.2%US$275.00US$135.00US$221.5636
Dec ’23US$144.50
US$199.74
+38.2%
15.6%US$280.00US$155.00US$198.0335
Nov ’23US$150.39
US$211.86
+40.9%
11.9%US$280.00US$160.00US$156.6535

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

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