Zscaler Inc (ZS) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Zscaler Inc stock (ZS) is currently trading at $139.44. Zscaler Inc PS ratio (Price-to-Sales) is 7.47. Analyst consensus price target for ZS is $234.79. WallStSmart rates ZS as Sell.
- ZS PE ratio analysis and historical PE chart
- ZS PS ratio (Price-to-Sales) history and trend
- ZS intrinsic value — DCF, Graham Number, EPV models
- ZS stock price prediction 2025 2026 2027 2028 2029 2030
- ZS fair value vs current price
- ZS insider transactions and insider buying
- Is ZS undervalued or overvalued?
- Zscaler Inc financial analysis — revenue, earnings, cash flow
- ZS Piotroski F-Score and Altman Z-Score
- ZS analyst price target and Smart Rating
Zscaler Inc
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Smart Analysis
Zscaler Inc (ZS) · 9 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, revenue growth, institutional own.. Concerns around return on equity and operating margin. Significant fundamental concerns warrant caution or avoidance.
Zscaler Inc (ZS) Key Strengths (3)
Large-cap company with substantial market presence
Strong revenue growth at 25.90% annually
57.94% held by institutions, strong professional interest
Supporting Valuation Data
Zscaler Inc (ZS) Areas to Watch (6)
Company is destroying shareholder value
Losing money on operations
Company is losing money with a negative profit margin
Very expensive at 11.1x book value
Premium valuation at 7.5x annual revenue
Growth is fairly priced, not cheap, not expensive
Supporting Valuation Data
Zscaler Inc (ZS) Detailed Analysis Report
Overall Assessment
This company scores 34/100 in our Smart Analysis, earning a F grade. Out of 9 metrics analyzed, 3 register as strengths (avg 8.3/10) while 6 fall into concern territory (avg 2.0/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Market Cap, Revenue Growth, Institutional Own.. Growth metrics are encouraging with Revenue Growth at 25.90%.
The Bear Case
The primary concerns are Return on Equity, Operating Margin, Profit Margin. Some valuation metrics including PEG Ratio (1.98), Price/Sales (7.47), Price/Book (11.09) suggest expensive pricing. Profitability pressure is visible in Return on Equity at -3.56%, Operating Margin at -6.20%, Profit Margin at -2.25%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at -3.56% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 25.90% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. Return on Equity and Operating Margin are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
ZS Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
ZS's Price-to-Sales ratio of 7.47x trades at a deep discount to its historical average of 24.74x (0th percentile). The current valuation is 89% below its historical high of 65.27x set in Oct 2021, and 0% above its historical low of 7.47x in Mar 2026. Over the past 12 months, the PS ratio has compressed from ~13.1x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for Zscaler Inc (ZS) · TECHNOLOGY › SOFTWARE - INFRASTRUCTURE
The Big Picture
Zscaler Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 3.0B with 26% growth year-over-year. The company is currently unprofitable, posting a -2.3% profit margin.
Key Findings
Revenue growing at 26% YoY, reaching 3.0B. This pace significantly outperforms most SOFTWARE - INFRASTRUCTURE peers.
Generating 169M in free cash flow and 204M in operating cash flow. Earnings are translating into actual cash generation.
The company is unprofitable with a -2.3% profit margin. The path to breakeven will be the key catalyst.
What to Watch Next
Growth sustainability: can Zscaler Inc maintain 26%+ revenue growth, or will competition slow it down?
Sector dynamics: monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive moves, and regulatory changes that could impact Zscaler Inc.
Bottom Line
Zscaler Inc offers an attractive blend of growth (26% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(16 last 3 months)
| Insider | Type | Shares |
|---|---|---|
BEER, JAMES A Director | Sell | -653 |
Data sourced from SEC Form 4 filings
Last updated: 4:21:04 PM
About Zscaler Inc(ZS)
NASDAQ
TECHNOLOGY
SOFTWARE - INFRASTRUCTURE
USA
Zscaler, Inc. is a global cloud security company. The company is headquartered in San Jose, California.