Zscaler, Inc.

NasdaqGS:ZS Stock Report

Market Cap: US$28.1b

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 ($187.38) is trading below our estimate of fair value ($325.68)

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 Ratio12.5x
SalesUS$2.30b
Market CapUS$28.11b

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 Average10.3x
MNDY monday.com
13.3x20.9%US$11.2b
GEN Gen Digital
4.4x2.7%US$16.9b
CHKP Check Point Software Technologies
8.2x5.1%US$20.6b
CYBR CyberArk Software
15.3x19.8%US$13.7b
ZS Zscaler
12.5x16.3%US$28.1b

Price-To-Sales vs Peers: ZS is expensive based on its Price-To-Sales Ratio (12.5x) compared to the peer average (10.3x).

Price to Sales Ratio vs Industry

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

79 CompaniesPrice / SalesEstimated GrowthMarket Cap
VYX NCR Voyix
0.6x-22.3%US$2.03b
PGY Pagaya Technologies
0.7x15.5%US$641.54m
XPER Xperi
0.9x1.8%US$457.27m
EGHT 8x8
0.5x1.5%US$351.48m
ZS 12.5xIndustry Avg. 5.5xNo. of Companies79PS048121620+
79 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ZS is expensive based on its Price-To-Sales Ratio (12.5x) compared to the US Software industry average (5.5x).

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 Ratio12.5x
Fair PS Ratio11.4x

Price-To-Sales vs Fair Ratio: ZS is expensive based on its Price-To-Sales Ratio (12.5x) compared to the estimated Fair Price-To-Sales Ratio (11.4x).

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 ZS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$187.38
US$225.77
+20.5%
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$182.59
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$165.00US$206.5938
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 23:06
End of Day Share Price 2024/12/20 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 here.

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 .

Analyst Sources

Zscaler, Inc. is covered by 68 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