(ZS) Zscaler - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US98980G1022

Cloud, Threat, Data, Branch, Operations

Systems Software
Market Cap in USD: 35,524m

IPO / Inception: 2018-03-16
12m vs SPY: -3.78%

EPS (Earnings per Share)

EPS CAGR: -31.04%
EPS Trend: 31.4%

Last SUE: 0.71
Qual. Beats: 0

Revenue

Rev. CAGR: 35.03%
Rev. Trend: 98.6%

Last SUE: 2.60
Qual. Beats: 10

Dividends

Currently no dividends paid

Risk via 5d forecast
Volatility	43.0%
Value at Risk 5%th	68.3%
Relative Tail Risk	-3.45%

Reward TTM
Sharpe Ratio	0.46
Alpha	-5.01
CAGR/Max DD	0.68

Character TTM
Hurst Exponent	0.461
Beta	1.234
Beta Downside	1.214

Drawdowns 3y
Max DD	39.06%
Mean DD	15.60%
Median DD	15.40%

Description: ZS Zscaler December 03, 2025

Zscaler, Inc. (NASDAQ:ZS) is a pure-play cloud security vendor that delivers a portfolio of Zero Trust solutions-including Zscaler Internet Access, Zscaler Private Access, Zero Trust Firewall, and a suite of data-security, threat-intelligence, and digital-experience tools-designed to protect users, applications, and data across any network or device.

The company’s offerings span the full Zero Trust stack: secure web gateway, secure access service edge (SASE), cloud sandboxing, data loss prevention, SaaS security, and managed detection & response, and are sold to a broad set of verticals such as financial services, healthcare, manufacturing, technology, and the public sector.

Key recent performance metrics: FY 2024 revenue reached approximately $2.1 billion, up ~13% YoY; annual recurring revenue (ARR) topped $3.5 billion with a net dollar retention rate of roughly 130%; and gross margins remained near 78%, reflecting the high-margin nature of subscription-based cloud software.

Sector-level drivers reinforce Zscaler’s growth outlook: worldwide cybersecurity spend is projected by Gartner to exceed $226 billion by 2025, with cloud-native security solutions growing faster than any other segment; additionally, regulatory mandates (e.g., CMMC, GDPR) and the continued shift to remote/hybrid work are accelerating enterprise adoption of Zero Trust architectures.

For a deeper, data-driven view of Zscaler’s valuation dynamics, you may find ValueRay’s analyst framework worth exploring.

Piotroski VR‑10 (Strict, 0-10) 2.5

Net Income (-41.0m TTM) > 0 and > 6% of Revenue (6% = 170.0m TTM)

FCFTA 0.13 (>2.0%) and ΔFCFTA -0.81pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 67.07% (prev 18.71%; Δ 48.36pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.17 (>3.0%) and CFO 1.09b > Net Income -41.0m (YES >=105%, WARN >=100%)

Net Debt (495.8m) to EBITDA (123.2m) ratio: 4.02 <= 3.0 (WARN <= 3.5)

Current Ratio 1.82 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (158.6m) change vs 12m ago 3.96% (target <= -2.0% for YES)

Gross Margin 76.66% (prev 77.81%; Δ -1.15pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 50.54% (prev 48.82%; Δ 1.72pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 0.38 (EBITDA TTM 123.2m / Interest Expense TTM 8.45m) >= 6 (WARN >= 3)

Altman Z'' 1.04

(A) 0.29 = (Total Current Assets 4.21b - Total Current Liabilities 2.31b) / Total Assets 6.50b

(B) -0.18 = Retained Earnings (Balance) -1.20b / Total Assets 6.50b

(D) -0.26 = Book Value of Equity -1.19b / Total Liabilities 4.52b

Total Rating: 1.04 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 52.13

1. Piotroski 2.50pt

2. FCF Yield 2.49%

3. FCF Margin 29.93%

4. Debt/Equity 0.93

5. Debt/Ebitda 4.02

6. ROIC - WACC (= -9.82)%

7. RoE -2.28%

8. Rev. Trend 98.58%

9. EPS Trend 31.44%

What is the price of ZS shares?

As of January 12, 2026, the stock is trading at USD 216.73 with a total of 1,589,223 shares traded.
Over the past week, the price has changed by -2.71%, over one month by -10.47%, over three months by -30.77% and over the past year by +16.22%.

Is ZS a buy, sell or hold?

Zscaler has received a consensus analysts rating of 4.17. Therefore, it is recommended to buy ZS.

Strong Buy: 24
Buy: 9
Hold: 11
Sell: 1
Strong Sell: 1

What are the forecasts/targets for the ZS price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	326.3	50.6%
Analysts Target Price	326.3	50.6%
ValueRay Target Price	228	5.2%

ZS Fundamental Data Overview January 07, 2026

P/E Forward = 57.8035
P/S = 12.5381
P/B = 17.7441
P/EG = 2.8984
Beta = 1.022
Revenue TTM = 2.83b USD
EBIT TTM = 3.22m USD
EBITDA TTM = 123.2m USD
Long Term Debt = 1.70b USD (from longTermDebt, last quarter)
Short Term Debt = 68.4m USD (from shortTermDebt, last quarter)
Debt = 1.83b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 495.8m USD (from netDebt column, last quarter)
Enterprise Value = 34.04b USD (35.52b + Debt 1.83b - CCE 3.32b)
Interest Coverage Ratio = 0.38 (Ebit TTM 3.22m / Interest Expense TTM 8.45m)
EV/FCF = 40.13x (Enterprise Value 34.04b / FCF TTM 848.1m)
FCF Yield = 2.49% (FCF TTM 848.1m / Enterprise Value 34.04b)
FCF Margin = 29.93% (FCF TTM 848.1m / Revenue TTM 2.83b)
Net Margin = -1.45% (Net Income TTM -41.0m / Revenue TTM 2.83b)
Gross Margin = 76.66% ((Revenue TTM 2.83b - Cost of Revenue TTM 661.3m) / Revenue TTM)
Gross Margin QoQ = 76.56% (prev 76.05%)
Tobins Q-Ratio = 5.23 (Enterprise Value 34.04b / Total Assets 6.50b)
Interest Expense / Debt = 0.12% (Interest Expense 2.13m / Debt 1.83b)
Taxrate = -38.70% (negative due to tax credits) (3.24m / -8.37m)
NOPAT = 4.46m (EBIT 3.22m * (1 - -38.70%)) [negative tax rate / tax credits]
Current Ratio = 1.82 (Total Current Assets 4.21b / Total Current Liabilities 2.31b)
Debt / Equity = 0.93 (Debt 1.83b / totalStockholderEquity, last quarter 1.98b)
Debt / EBITDA = 4.02 (Net Debt 495.8m / EBITDA 123.2m)
Debt / FCF = 0.58 (Net Debt 495.8m / FCF TTM 848.1m)
Total Stockholder Equity = 1.80b (last 4 quarters mean from totalStockholderEquity)
RoA = -0.73% (Net Income -41.0m / Total Assets 6.50b)
RoE = -2.28% (Net Income TTM -41.0m / Total Stockholder Equity 1.80b)
RoCE = 0.09% (EBIT 3.22m / Capital Employed (Equity 1.80b + L.T.Debt 1.70b))
RoIC = 0.14% (NOPAT 4.46m / Invested Capital 3.22b)
WACC = 9.95% (E(35.52b)/V(37.36b) * Re(10.46%) + D(1.83b)/V(37.36b) * Rd(0.12%) * (1-Tc(-0.39)))
Discount Rate = 10.46% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 3.65%
[DCF Debug] Terminal Value 75.18% ; FCFF base≈769.7m ; Y1≈949.5m ; Y5≈1.62b
Fair Price DCF = 119.3 (EV 19.52b - Net Debt 495.8m = Equity 19.03b / Shares 159.5m; r=9.95% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 31.44 | EPS CAGR: -31.04% | SUE: 0.71 | # QB: 0
Revenue Correlation: 98.58 | Revenue CAGR: 35.03% | SUE: 2.60 | # QB: 10
EPS next Quarter (2026-04-30): EPS=0.95 | Chg30d=+0.000 | Revisions Net=+29 | Analysts=43
EPS current Year (2026-07-31): EPS=3.82 | Chg30d=+0.000 | Revisions Net=+39 | Growth EPS=+16.6% | Growth Revenue=+23.3%
EPS next Year (2027-07-31): EPS=4.48 | Chg30d=+0.000 | Revisions Net=+18 | Growth EPS=+17.3% | Growth Revenue=+19.8%

Additional Sources for ZS Stock

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