Zscaler, Inc.

NasdaqGS:ZS Stock Report

Market Cap: US$27.1b

Zscaler Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow 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.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: ZS ($163.48) is trading below our estimate of future cash flow value ($258)

Significantly Below Future Cash Flow Value: ZS is trading below future cash flow 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 Ratio8x
SalesUS$3.35b
Market CapUS$27.08b

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 Average9.6x
RBRK Rubrik
12x16.13%US$18.4b
GEN Gen Digital
3.5x4.52%US$17.8b
FROG JFrog
18.2x16.72%US$10.8b
CHKP Check Point Software Technologies
4.8x5.30%US$13.8b
ZS Zscaler
8x13.32%US$27.1b

Price-To-Sales vs Peers: ZS is good value based on its Price-To-Sales Ratio (8x) compared to the peer average (9.6x).

Historical Price to Sales Ratio

Historical Price to Sales Ratio compares a stock's price to its sales over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

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
0.4x-7.05%US$1.15b
DSP Viant Technology
0.7x13.91%US$852.21m
RPD Rapid7
0.8x-1.29%US$711.75m
XNET Xunlei
0.6xn/aUS$310.42m
ZS 8.0xIndustry Avg. 3.9xNo. of Companies79PS03.67.210.814.418+
79 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ZS is expensive based on its Price-To-Sales Ratio (8x) compared to the US Software industry average (3.9x).

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 Ratio8x
Fair PS Ratio8.8x

Price-To-Sales vs Fair Ratio: ZS is good value based on its Price-To-Sales Ratio (8x) compared to the estimated Fair Price-To-Sales Ratio (8.8x).

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$163.48
US$207.06
+26.66%
10.13%US$250.00US$155.00n/a44
Sep ’27US$178.37
US$198.88
+11.50%
12.44%US$250.00US$145.00n/a44
Aug ’27US$151.20
US$192.55
+27.35%
13.77%US$250.00US$145.00n/a44
Jul ’27US$146.45
US$192.58
+31.50%
13.96%US$250.00US$145.00n/a44
Jun ’27US$155.71
US$194.90
+25.17%
13.66%US$250.00US$145.00n/a45
May ’27US$139.81
US$227.67
+62.85%
21.12%US$335.00US$140.00n/a45
Apr ’27US$136.67
US$233.70
+71.00%
18.49%US$335.00US$165.00n/a46
Mar ’27US$146.99
US$238.23
+62.07%
19.90%US$335.00US$165.00n/a45
Feb ’27US$200.01
US$317.58
+58.78%
11.12%US$390.00US$215.00n/a45
Jan ’27US$224.92
US$326.78
+45.29%
9.77%US$390.00US$215.00n/a45
Dec ’26US$243.28
US$328.22
+34.91%
9.53%US$390.00US$215.00n/a45
Nov ’26US$331.14
US$326.02
-1.55%
10.18%US$390.00US$215.00n/a44
Oct ’26US$304.53
US$323.77
+6.32%
10.32%US$385.00US$215.00n/a44
Sep ’26US$277.05
US$315.71
+13.95%
11.83%US$385.00US$215.00US$178.3744
Aug ’26US$280.27
US$315.61
+12.61%
11.89%US$385.00US$215.00US$151.2043
Jul ’26US$307.32
US$314.35
+2.29%
11.61%US$385.00US$215.00US$146.4544
Jun ’26US$275.70
US$283.04
+2.66%
10.88%US$323.00US$196.23US$155.7143
May ’26US$227.06
US$236.83
+4.30%
7.76%US$270.00US$195.00US$139.8143
Apr ’26US$201.07
US$236.72
+17.73%
7.10%US$270.00US$195.00US$136.6742
Mar ’26US$196.23
US$227.35
+15.86%
8.99%US$270.00US$180.00US$146.9941
Feb ’26US$202.59
US$226.04
+11.57%
9.00%US$270.00US$180.00US$200.0141
Jan ’26US$180.41
US$225.77
+25.14%
8.96%US$270.00US$180.00US$224.9241
Dec ’25US$206.59
US$220.15
+6.57%
10.81%US$270.00US$177.00US$243.2841
Nov ’25US$182.59
US$213.43
+16.89%
11.60%US$270.00US$165.00US$331.1440
Oct ’25US$166.99
US$214.54
+28.47%
11.51%US$270.00US$165.00US$304.5339
Sep ’25US$199.98
US$231.10
+15.56%
11.80%US$290.00US$180.00US$277.0539
US$207.06
Fair Value
21.0% undervalued intrinsic discount
44
Number of Analysts

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 Analysis2026/09/10 23:23
End of Day Share Price 2026/09/10 00:00
Earnings2026/07/31
Annual Earnings2026/07/31

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 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 58 analysts. 42 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
Saket KaliaBarclays
Rahul ChopraBerenberg