(ZS) Zscaler - Ratings and Ratios

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

Cloud, Threat, Data, Branch, Operations

Stock: Systems Software
Age 7.9y

MCap 34,124m
Avg Vol 1.52M (329M USD)

Beta 1.249
Volatility 40.29%

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	40.3%
Value at Risk 5%th	63.7%
Relative Tail Risk	-3.93%

Reward TTM
Sharpe Ratio	0.31
Alpha	-9.05
CAGR/Max DD	0.47

Character TTM
Hurst Exponent	0.490
Beta	1.249
Beta Downside	1.270

Drawdowns 3y
Max DD	39.06%
Mean DD	16.03%
Median DD	16.52%

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) 3.5

Net Income: -41.0m TTM > 0 and > 6% of Revenue
FCF/TA: 0.13 > 0.02 and ΔFCF/TA -0.81 > 1.0
NWC/Revenue: 67.07% < 20% (prev 18.71%; Δ 48.36% < -1%)
CFO/TA 0.17 > 3% & CFO 1.09b > Net Income -41.0m
Net Debt (495.8m) to EBITDA (123.2m): 4.02 < 3
Current Ratio: 1.82 > 1.5 & < 3
Outstanding Shares: last quarter (158.6m) vs 12m ago 3.96% < -2%
Gross Margin: 76.66% > 18% (prev 0.78%; Δ 7588 % > 0.5%)
Asset Turnover: 50.54% > 50% (prev 48.82%; Δ 1.72% > 0%)
Interest Coverage Ratio: 0.38 > 6 (EBITDA TTM 123.2m / Interest Expense TTM 8.45m)

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 -1.20b / Total Assets 6.50b)
C: 0.00 (EBIT TTM 3.22m / Avg Total Assets 5.61b)
D: -0.26 (Book Value of Equity -1.19b / Total Liabilities 4.52b)
Altman-Z'' Score: 1.04 = BB

Beneish M -2.76

DSRI: 1.01 (Receivables 530.5m/424.6m, Revenue 2.83b/2.30b)
GMI: 1.02 (GM 76.66% / 77.81%)
AQI: 1.43 (AQ_t 0.25 / AQ_t-1 0.17)
SGI: 1.23 (Revenue 2.83b / 2.30b)
TATA: -0.17 (NI -41.0m - CFO 1.09b) / TA 6.50b)
Beneish M-Score: -2.76 (Cap -4..+1) = A

ValueRay F-Score (Strict, 0-100) 53.07

1. Piotroski: 3.50pt
2. FCF Yield: 2.60%
3. FCF Margin: 29.93%
4. Debt/Equity: 0.93
5. Debt/Ebitda: 4.02
6. ROIC - WACC: -9.91%
7. RoE: -2.28%
8. Revenue Trend: 98.58%
9. EPS Trend: 31.44%

What is the price of ZS shares?

As of January 26, 2026, the stock is trading at USD 209.62 with a total of 1,508,521 shares traded.
Over the past week, the price has changed by +1.60%, over one month by -9.07%, over three months by -35.76% and over the past year by +9.61%.

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	318.4	51.9%
Analysts Target Price	318.4	51.9%
ValueRay Target Price	216.5	3.3%

ZS Fundamental Data Overview January 20, 2026

P/E Forward = 56.1798
P/S = 12.0439
P/B = 17.2139
P/EG = 2.8155
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 = 32.64b USD (34.12b + Debt 1.83b - CCE 3.32b)
Interest Coverage Ratio = 0.38 (Ebit TTM 3.22m / Interest Expense TTM 8.45m)
EV/FCF = 38.48x (Enterprise Value 32.64b / FCF TTM 848.1m)
FCF Yield = 2.60% (FCF TTM 848.1m / Enterprise Value 32.64b)
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 = 5.02 (Enterprise Value 32.64b / Total Assets 6.50b)
Interest Expense / Debt = 0.12% (Interest Expense 2.13m / Debt 1.83b)
Taxrate = 21.0% (US default 21%)
NOPAT = 2.54m (EBIT 3.22m * (1 - 21.00%))
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 = 0.08% (NOPAT 2.54m / Invested Capital 3.22b)
WACC = 9.99% (E(34.12b)/V(35.96b) * Re(10.52%) + D(1.83b)/V(35.96b) * Rd(0.12%) * (1-Tc(0.21)))
Discount Rate = 10.52% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 3.65%
[DCF Debug] Terminal Value 75.08% ; FCFF base≈769.7m ; Y1≈949.5m ; Y5≈1.62b
Fair Price DCF = 118.7 (EV 19.42b - Net Debt 495.8m = Equity 18.93b / Shares 159.5m; r=9.99% [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=4.49 | Chg30d=-0.000 | Revisions Net=+18 | Growth EPS=+17.3% | Growth Revenue=+19.8%

Additional Sources for ZS Stock

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Fund Manager Positions: Dataroma | Stockcircle