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Zscaler, Inc. (ZS)

NASDAQ: ZS · Real-Time Price · USD
$152
-0.66 (-0.4%)· Live
StockMarketAgent Research

Our analysis: ZS rated Hold

ZS is rated Hold at $152.13 versus the reconciled fair value midpoint of $164.73, implying +8.28% upside/downside. Confidence is separately disclosed at 76/100.

Fair value (mid)
$165 / share
$114 – $227
Upside to FV
+8.3%
from $152
Confidence
76/100
Moat
6.5/10
Read full analysis →View archive · 24mo
9-phase methodology · same model every month
Biggest opportunityBull case · highest-impact upside lever

Bull: Zero Trust adoption accelerates, keeping revenue growth >20% for longer. Operating leverage kicks in as sales and marketing efficiencies improve, driving operating margins toward the 30% industry benchmark and supporting a premium multiple.

Biggest riskTop kill scenario by severity
Platform Bundling Accelerates

Platform Bundling Accelerates: Mega-cap competitors successfully bundle Zero Trust solutions, driving severe pricing compression and halting new customer acquisition.

Recommended actionConviction: high
Hold

ZS is rated Hold at $152.13 versus the reconciled fair value midpoint of $164.73, implying +8.28% upside/downside. Confidence is separately disclosed at 76/100.

Position sizing playbook →
Market cap$24.5B
Revenue (ttm)3B
Net income (ttm)-67.6M
EPS (ttm)$-0.43
Shares out160.8M
P/E (forward)33.2x
Volume3,522,202
Beta0.96
Price target$265+74.1%
Market data

Price

Recent price action with selectable time range.

Zscaler, Inc.ZS
—
Loading chart…

Financial snapshot

Revenue (ttm)
3B
Net income (ttm)
-67.6M
EPS (ttm)
$-0.43
P/E (forward)
33.2x
Market cap
$24.5B

Scenarios & expected return

Probability-weighted: +8.3% expected return to fair value
Bull25%
Price target
$226.95
+49.2% from spot

Zero Trust adoption accelerates, keeping revenue growth >20% for longer. Operating leverage kicks in as sales and marketing efficiencies improve, driving operating margins toward the 30% industry benchmark and supporting a premium multiple.

  • Revenue growth sustained above 20%
  • Rapid realization of operating leverage
  • Terminal EV/Rev multiple exceeds 10x
Base45%
Price target
$164.73
+8.3% from spot

The company sustains mid-to-high teens revenue growth over the medium term. Operating leverage materializes gradually, though persistent SBC limits immediate GAAP profitability. Fair value assumes strict normalization to industry average margins.

  • Revenue growth decelerates smoothly to 12%
  • Terminal margin normalizes to 33.2%
  • Terminal valuation anchors at 8x EV/Rev
Bear30%
Price target
$113.67
-25.3% from spot

Competition from integrated platforms like Microsoft and Palo Alto Networks compresses margins and slows growth. Persistent high SBC continues to heavily dilute equity, eroding per-share value despite continued top-line growth.

  • Growth drops below 15% rapidly
  • Margin expansion stalls due to competition
  • Multiple compresses significantly

Valuation models & bridge

Each model produces an independent fair value. Weighted average = $165.
ModelWeightFV / sharevs spotContribution
Ev revenue85%$180+18.5%
Peg adjusted peer15%$76.4-49.8%
Reverse DCF0%$0.00-100.0%
FCFF DCF0%$0.00-100.0%
Composite FV (weighted)100%$165+8.3%

Sensitivity: Ke × terminal growth

Ke ↓ / g →2.0%2.5%3.0%3.5%4.0%
9.3%$205$220$237$258$282
10.3%$180$192$205$220$237
11.3%$161$170$180$192$205
12.3%$145$153$161$170$180
13.3%$132$139$145$153$161

Scorecard

Factor radar (left) · 9-category weighted composite (right)
ValuationManagementBalanceProfitabilityRevenueRiskCompetitiveEarningsCapital
Valuation5.0
Management6.3
Balance Sheet6.0
Profitability1.5
Revenue Growth7.5
Risk Assessment6.5
Competitive Moat6.5
Earnings Quality3.0
Capital Efficiency2.5
Weighted composite
5.0/10
Mixed
CategoryWeightScoreReading
Valuation11%5.0
Management11%6.3
Balance Sheet11%6.0
Profitability11%1.5
Revenue Growth11%7.5
Risk Assessment11%6.5
Competitive Moat11%6.5
Earnings Quality11%3.0
Capital Efficiency11%2.5

Position sizing & entry playbook

Pre-committed rules, followed irrespective of news flow.
Conviction tier
High
Confidence 76/100
Target weight
Maintain as a standard holding for growth portfolios, but size cautiously due to the valuation premium and ongoing equity dilution from SBC.
of equity sleeve
Await a wider margin of safety closer to $130 or demand clear evidence of structural GAAP margin inflection before accumulating.
Current / pullbacks
Current price
Today’s last trade
$152
Trim positions on aggressive multiple expansion that occurs without a corresponding increase in true free cash flow per share.
Thesis break
Risk to thesis
  • Trim positions on aggressive multiple expansion that occurs without a corresponding increase in true free cash flow per share.
Calendar

Next earnings

Upcoming earnings date and setup when available.

Upcoming
DateLoading
Window—
EPS estimate—
Revenue estimate—

Sector percentile context

Refreshed 2026-05-10 22:07 UTC
Forward P/E33.2
P25 n/aP50 n/aP75 n/a
Trailing P/E0
P25 n/aP50 n/aP75 n/a
ROE-3.6
P25 n/aP50 n/aP75 n/a
ROIC-2.4
P25 n/aP50 n/aP75 n/a
Benchmarks · 1M
S&P 500n/a
Nasdaq Compositen/a
Dow Jones Industrial Averagen/a
Russell 2000n/a

All ZS indicators

Market & fundamental data
Available fields
234
Groups with data
11
Currency
USD
Showing 234 of 234 available metrics for this ticker.

Profile and market data

Ticker identity, listing, currency, market cap, and source dates.

26
MetricValue
Cik
0001713683
Company name
Zscaler, Inc.
Country
United States
Country code
US
Cusip
98980G102
Employees
7,923
Employees Change
575%
Employees Change Percent
7.83
Enterprise value
$22.8B
Exchange
NASDAQ
Financial currency
USD
First seen
2026-05-09
In Index
NASDAQ100
Industry
Software - Infrastructure
IPO Date
2018-03-16
Isin
US98980G1022
Last refreshed
2026-05-10
Market cap
$24.5B
Market cap category
Large-Cap
Price
$152
Price currency
USD
Rev Per Employee
378,786.19x
Sector
Technology
Sic
7371
Symbol
ZS
Website
https://www.zscaler.com

Valuation

Multiples, yields, enterprise-value ratios, and valuation checks.

10
MetricValue
Earnings Yield
-0.28%
EV Sales Forward
6.11x
EV/FCF
24.1x
EV/Sales
7.6x
FCF yield
3.87%
Forward P/E
35.97x
P/B ratio
11.12x
P/S ratio
8.15x
PEG ratio
1.44x
PS Forward
6.55x

Profitability

Margins, returns on capital, cash conversion, and quality metrics.

20
MetricValue
EBIT Margin
-4.42%
EBITDA Margin
-2.27%
FCF margin
31.55%
Gross margin
76.63%
Gross Profit
$2.3B
Gross Profit Growth
21.97%
Gross Profit Growth Q
24.97%
Gross Profit Growth3 Y
29.76%
Gross Profit Growth5 Y
40.83%
Net Income
$-67.6M
Net Income Growth Years
3%
Pretax Margin
-0.9%
Profit Margin
-2.25%
Profit Per Employee
$-8,536
ROA
-1.41
Roa5y
-4.39
ROCE
-3
ROE
-3.56
Roe5y
-32.43
ROIC
-2.4

Growth

Revenue, earnings, cash-flow, and forward growth indicators.

18
MetricValue
Cagr1y
-34.88%
Cagr3y
19.36%
Cagr5y
-2.12%
EPS Growth Years
3
FCF Growth
22.85%
FCF Growth Q
13.32%
FCF Growth3 Y
45.78%
FCF Growth5 Y
60.46%
OCF Growth
25.49%
OCF Growth Q
13.73%
OCF Growth3 Y
40.89%
OCF Growth5 Y
52.2%
Revenue Growth
23.92x
Revenue Growth Q
25.91x
Revenue Growth Quarters
32x
Revenue Growth Years
10x
Revenue Growth3 Y
30.58x
Revenue Growth5 Y
41.13x

Financial strength

Debt, cash, solvency, accounting-quality, and balance-sheet signals.

22
MetricValue
Asset Turnover
$0.51
Assets
$6.8B
Cash
$3.5B
Current Assets
$4.5B
Current Liabilities
$2.3B
Debt
$1.9B
Debt EBITDA
$44.98
Debt Equity
$0.85
Debt FCF
$1.97
Equity
$2.2B
Interest Coverage
-12.76
Liabilities
$4.6B
Long Term Assets
$2.3B
Long Term Liabilities
$2.2B
Net Cash
$1.6B
Net Cash By Market Cap
$6.73
Net Cash Growth
0.32%
Net Debt Equity
$-0.75
Net Debt FCF
$-1.74
Tangible Book Value
$985.7M
Tangible Book Value Per Share
$6.14
WACC
8.89

Liquidity

Current-asset coverage and working-capital efficiency metrics.

5
MetricValue
Current ratio
1.9
Net Working Capital
$-1.3B
Quick ratio
1.75
Working Capital
$2.1B
Working Capital Turnover
$2.2

Dividends and buybacks

Dividend yield, payout, buybacks, and shareholder-yield indicators.

2
MetricValue
Buyback Yield
-3.56%
Dividend Yield
0%

Performance and technicals

Returns, volatility, beta, momentum, RSI, and moving-average context.

40
MetricValue
1Y total return
-34.86%
200-day SMA
230.2
3Y total return
70.05%
50-day SMA
142.7
50-day SMA vs 200-day SMA
50under200
5Y total return
-10.15%
All Time High
376.1
All Time High Change
-59.55%
All Time High Date
2021-11-19
All Time Low
24.76
All Time Low Change
514.42%
All Time Low Date
2018-05-25
ATR
7.59
Beta
0.96
Beta1y
0.9
Beta2y
1.48
Ch YTD
-32.36
High
152.2
High52
337
High52 Date
2025-11-03
High52ch
-54.86%
Low
145.1
Low52
114.6
Low52 Date
2026-04-10
Low52ch
32.72%
Ma50ch
6.61%
Premarket Change Percent
-2.48
Premarket Price
$149
Premarket Volume
24,339
Price vs 200-day SMA
-33.91%
RSI
60.98
RSI Monthly
41.86
RSI Weekly
37.94
Sharpe ratio
-0.78x
Sortino ratio
-0.89
Total Return
-3.56%
Tr YTD
-32.36
Tr1m
7.07%
Tr1w
8.81%
Tr3m
-9.08%

Analyst estimates

Ratings, targets, revisions, and forward estimate fields.

14
MetricValue
Analyst Count
38
Analyst Count Top
12
Analyst Price Target Top
$266
Analyst Ratings
Buy
Analyst Ratings Top
Buy
Earnings EPS Estimate
$0.8
Earnings EPS Estimate Growth
-4.76
Earnings Revenue Estimate
835,413,720x
Earnings Revenue Estimate Growth
23.21x
Operating Income
$-132.5M
Operating margin
-4.42
Price target
$265
Price Target Change
$74.07
Price Target Change Top
$74.79

Ownership and float

Institutional, insider, float, short-interest, and share-count fields.

11
MetricValue
Float
104,214,293%
Float Percent
64.81%
Net Borrowing
574,960,000
Shares Insiders
35.16%
Shares Institutions
55.38%
Shares Out
160,790,703
Shares Qo Q
0.69%
Shares Yo Y
3.56%
Short Float
10.08%
Short Ratio
3.53
Short Shares
6.54

Other indicators

Additional ticker metrics that do not fit the primary research groupings yet.

66
MetricValue
Adjusted FCF
$209.6M
Average Volume
2,631,787.95x
Bv Per Share
13.68
CAPEX
$-167.3M
Ch1m
7.07
Ch1w
8.81
Ch1y
-34.86
Ch3m
-9.08
Ch3y
70.05
Ch5y
-10.15
Ch6m
-52.46
Change
-0.43%
Change From Open
1.87
Close
152.8
Days Gap
-2.26
Depreciation Amortization
64,497,000
Dollar Volume
535,832,590.3
Earnings Date
2026-05-26
Earnings Time
amc
EBIT
$-132.5M
EBITDA
$-68M
EPS
$-0.43
F Score
3
FCF
$946.8M
FCF EV Yield
4.15x
FCF Per Share
$5.89
Financing CF
419,211,000
Fiscal Year End
July
Founded
2,007
Goodwill
1,001,401,000
Income Tax
$40.6M
Investing CF
-2,089,004,000
Is Primary Listing
1
Is Spac
No
Last Earnings Date
2026-02-26
Last Report Date
2026-01-31
Last Split Type
Never
Last10k Filing Date
2025-09-11
Ma150
212.9
Ma150ch
-28.55%
Ma20
136.7
Ma20ch
11.3%
Net CF
-555,755,000
Next Earnings Date
2026-05-26
Open
149.3
Optionable
Yes
P FCF Ratio
25.84
P OCF Ratio
21.96
Position In Range
99.01
Post Close
152.1
Postmarket Change Percent
-0.41
Postmarket Price
$152
Ppne
682,956,000
Pre Close
152.8
Price Date
2026-05-08
Ptbv Ratio
24.82
Relative Volume
1.34x
Revenue
3,001,123,000x
SBC By Revenue
24.56x
Share Based Comp
737,201,000
Tax By Revenue
1.35x
Tr6m
-52.46%
Us State
California
Views
117
Volume
3,522,202
Z Score
5.79

Deeper analysis on ZS

14 sections in the full report · jump straight to what you need
Forecast
Bull, base, and bear cases with expected-return framing.
→
Valuation
Fair-value bridge, DCF, owner earnings, and peer multiples.
→
Sensitivity
Cost-of-equity and terminal-growth stress table.
→
Risks
Kill scenarios, soft-pass flags, and downside catalysts.
→
Earnings
Next earnings setup and beat / inline / miss thresholds.
→
Position sizing
Entry, exit, conviction, and quarterly monitoring rules.
→
Financials
Revenue, margins, cash flow, and balance-sheet context.
→
Peers
Relative valuation and profitability against the cohort.
→
Moat
Economic-profit evidence and competitive advantage risk.
→
Industry cycle
Sector phase, capital cycle, and secular tailwinds.
→
Scorecard
Six-factor overlay and 9-category weighted scorecard.
→
Recommendation
Final action, action steps, opportunity, and biggest risk.
→
Perspectives
Growth, value, and income investor reads.
→
Archive
Prior monthly reports and rating changes.
→

Frequently asked questions

About this ZS report
What is the current ZS stock rating?
Zscaler, Inc. is currently shown with Hold in the latest report. The hub links directly to the full analysis surface where the rating, fair-value bridge, risks, and scorecard are documented together.
Where can I read the full ZS analysis?
The full report lives at /stocks/ZS/analysis. The bare ticker page is a product hub that summarizes the latest read and sends readers into the relocated analysis tabs without making the analysis surface depend on the hub.
What fair-value range is used for ZS?
The latest report frames ZS around $114 to $227. Treat that range as the entry point, then check the valuation, sensitivity, and bear-case tabs before making an investment decision.
How often is the ZS page updated?
The hub updates with the latest published stock report and live backend market data. The analysis pages remain reachable under /analysis, so a hub rollback does not remove the report reader.
HoldZS · Fair value $165+8.3% · Confidence 76/100
Read full analysis →