ZS

Zscaler, Inc.

Fundamental data last updated:May 19, 2026

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company profile

SECTOR

Technology

industry

Software - Infrastructure

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

05/26/2026

Business Summary

Zscaler, Inc. operates as a cloud security company worldwide. The company provides Zscaler Internet Access solution that provides users, servers, operational technology, Internet of Things device secure access to externally managed applications, including software-as-a-service (SaaS) applications and Internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds. It also offers Zscaler Digital Experience that measures end-to-end user experience across business applications, as well as provides an easy to understand digital experience score for each user, application, and location within an enterprise. In addition, the company provides workload segmentation solutions comprising Zscaler Cloud Security Posture Management that identifies and remediates application misconfigurations in SaaS, infrastructure as a service, and platform as a service to reduce risk and ensure compliance with industry and organizational benchmarks; and Zscaler Cloud Workload Segmentation, which is designed to secure application-to-application communications inside public clouds and data centers to stop lateral threat movement, as well as prevents application compromise and reduces the risk of data breaches. Its platform modules include Zscaler Central Authority, Zscaler Enforcement Node, and Zscaler Log Servers. It serves customers in airlines and transportation, conglomerates, consumer goods and retail, financial services, healthcare, manufacturing, media and communications, public sector and education, technology, and telecommunications services industries. The company was formerly known as SafeChannel, Inc., and changed its name to Zscaler, Inc. in August 2008. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California.

 


VALUATION

P/E

-374.86

Market Cap ($M USD)

$25.53B

Forward P/E

28.00

PEG

0.02

PRICE TO SALES

8.51

PRICE TO BOOK

11.54

EV / EBITDA

190.19

5-Year Average P/E

Free Cash Flow Yield

3.70%

DCF Value

$108.90

Graham Number

N/A

Price to FCF

27.05

EV to FCF

27.75

Earnings Yield

-0.27%

FCF Yield

3.70%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$0.42

Next Year EPS Growth Estimate

$5.67

Next Year Revenue Growth Estimate

$632.29B

Return on Equity (ROE)

-3.48%

FREE CASH FLOW

Operating Margin

-4.76%

Debt-to-Equity

1.00

Piotroski F-Score

3

Altman Z-Score

3.79

Return on Invested Capital (ROIC)

-3.24%

Current Ratio

1.90

Quick Ratio

1.90

Net Debt to EBITDA

4.80

Interest Coverage

-13.74

Gross Profit margin

76.56%

FCF PER SHARE

$5.91

REVENUE PER SHARE

$18.79

Gainseekers Quantitative Analysis

Summary

ZS Zscaler, Inc. is trading in a realm of high expectations, with its snapshot price significantly above its DCF value. The Forward P/E of 26.83 suggests optimism about future earnings, contrasting sharply with the current negative earnings yield. The Altman Z-score of 3.78 indicates a solid financial footing, yet the market seems to be pricing in perfection. The absence of a Graham Number underscores the speculative nature of its valuation, hinting at potential mispricing.

AI Exposure / Tech Reliance

In the rapidly evolving tech landscape, Zscaler is well-positioned within the Software - Infrastructure industry. This sector is crucial for AI integration, offering robust opportunities for growth and adaptation. As digital transformation accelerates, Zscaler's infrastructure solutions are pivotal.

The Bull Case

For the GARP investor, Zscaler presents a compelling narrative of growth potential. The forward PEG ratio of 0.018 signals undervaluation relative to expected growth, while a strong FCF yield of 3.86% highlights efficient cash generation. Despite a modest Piotroski F-Score of 3, the company’s gross profit margin of 76.56% suggests significant pricing power and operational efficiency.

The Bear Case

However, the bear case is hard to ignore. The Price/Book ratio of 11.06 and Price/Sales of 8.15 indicate a stock priced for perfection, with little room for error. Negative ROIC and operating margins reflect challenges in capital efficiency and profitability. The technical overextension, with the stock trading far above its 52-week high, raises concerns about sustainability.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$277.18

Institutional Ownership %

1-Year Beta

0.96

Insider Buying % (6 Mo)

Distance to 52-Week High

112.26%

Distance to 52-Week Low

27.80%

EARNINGS SURPRISE %

12.98%

50-DAY SMA

$142.59

200-DAY SMA

$227.44

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.