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Zscaler Inc (ZS) fair value: what the stock is really worth

We calculate from audited financials what Zscaler Inc is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily.

  1. Fair value above price? No
  2. Good quality? No
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Technology · US · ISIN US98980G1022

ZI Zscaler Inc logo Some data Sep 18, 2026

Zscaler Inc

ZS · US

Weakest SetupStrongly overvalued and low quality.

!Fair value $120.76 · Strongly overvalued (−39%)
!Quality 45/100
!Mixed Growth (revenue 5y +44.0 %/yr)
!Loss-making · -2.4% net margin (TTM)
✓Moderate debt · generates free cash flow
!Trails peers (1/12)
!Narrow moat 20/100
!Insider activity 40/100
!Evidence only medium, so the estimate is less certain
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What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

$368.78 $87.00 Fair Value $120.76 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 18, 2026.

How to read this chart

60‑month range $87.00 – $368.78 · fair‑value band $63.03 – $172.96 · the $197.31 price screens above the $120.76 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 18, 2026.

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Company profile

Zscaler, Inc. operates as a cloud security company worldwide.

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Zscaler, Inc. operates as a cloud security company worldwide. The company offers cyberthreat protection products, including Zscaler Internet Access, which provides threat protection, cloud sandbox, and cloud browser isolation; Zscaler Private Access solution that includes cyberthreat and data protection, application discovery, secure application access, application segmentation, application protection, reduced attack surface, and browser isolation; Zero Trust Firewall; Cloud Sandbox; and Zero Trust Browser. It also provides data security products, such as web and email DLP, endpoint DLP, BYOD security, multi-mode CASB, unified SaaS security, DSPM, AI-SPM, public gen AI security, and Microsoft Copilot data protection; Zero Trust Cloud solution. In addition, the company offers Zero Trust Branch comprising Zero Trust SD-WAN; IoT/OT segmentation; privileged remote access; Zscaler Cellular; and 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. Further, it provides security operations products, including data fabric for security; asset exposure management; Risk360; unified vulnerability management; deception; managed detection and response; and managed threat hunting. Additionally, the company offers Zero Trust Gateway, a fully managed Zscaler service. It serves the automotive, airlines and transportation, conglomerates, consumer goods and retail, energy, financial services, healthcare, insurance, 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.

Stock analysis

Zscaler Inc (ZS) currently trades at $197.31, while our model-based Fair Value estimate is $120.76, implying the stock looks roughly 63.4% overvalued today.

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Valuation

Bull case: the DCF Models group reads highest at a median of $123.27 per share, and 0 of the 9 models we run sit above the $197.31 price.

Bear case: the Multiples group reads lowest at $62.68, and 9 of the 9 models stay below the price. Evidence for this calculation is medium.

Scenario range: $63.03 (bear) to $172.96 (bull), the price of $197.31 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 45/100 (below-average quality), in the Technology sector.

Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.

Zscaler Inc reported revenue of $2.7B in FY2025 versus $673M in FY2021, a compound +41.2%/yr. Reported net income was −$41.5M in FY2025.

Key figures

Market cap $30.5B · P/S ratio 7.35 · EPS (TTM) $−0.4800 · Dividend yield 4.4% · Net margin −1.6% · Return on equity −3.7% · Return on assets (EBIT) −6.3% · Operating margin −3.3%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (low confidence).

What moves the price

The share trades about 41% below its 52-week high and 72% above its 52-week low, currently below its 200-day average.

For context, the median of 10 Technology peers we cover trades at −16% fair-value upside, at −39%, ZS screens richer than that median.

Fair Value models

Bear $63.03 Fair Value $120.76 Bull $172.96
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Highest evidence
FCF DCF $79.89 $123.27 $261.40 73
Growth DCF $75.40 $145.46 $260.26 73
5Y Revenue Exit $58.05 $95.56 $173.93 67
All 9 models by family
DCF Models
FCF DCF $79.89 $123.27 $261.40 73
5Y Revenue Exit $58.05 $95.56 $173.93 67
10Y Revenue Exit $63.52 $130.16 $171.21 64
Dividend Discount
Gordon GGM $58.04 $120.68 $191.44 64
DDM Multi-Stage $58.04 $101.76 $126.66 64
Multiples
EV/Revenue $45.15 $62.68 $80.20 54
Asset-Based
NCAV (Graham) $5.56 $7.45 $11.13 54
Growth DCF
Growth DCF $75.40 $145.46 $260.26 73
Rev-Margin DCF $63.54 $108.73 $203.43 67

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Quality Score breakdown

Overall quality 45/100

Of which business quality 53 · Market factors (momentum, volatility) 40

Profitability 23
Margins and returns on capital today
Quality Growth 56
Are margins and returns improving?
Cashflow 89
Earnings quality: real cash, not paper profit
Fin. Strength 64
Balance sheet, leverage, solvency risk
Investment 20
Disciplined investing over empire-building
Low Volatility 32
Calm price path (market factor)
Momentum 57
Price trend over the last 3–12 months (market factor)
52W Momentum 19
Distance to the 52-week high (market factor)
Net Issuance 50
Share count: buybacks or dilution?

Open the full quality analysis →

Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 67/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+23.3%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+34.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+44.0%
Revenue growth 10 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+47.8%
Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
−22.0% (2020) → −4.8% (2025)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed

Growth Forecast

A lot of optimism in the price
The price assumes less growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+21.3%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+17.9%
Yearly sales growth analysts expect, extended to five years.
Forecast 2026 (sales)+20.8%
Forecast 2027 (sales)+20.8%
Projected 2028 (sales)+18.4%
Projected 2029 (sales)+16.1%
Projected 2030 (sales)+13.7%

ZS screens 63% overvalued. Compare with Microsoft Corporation →

Recent news

News mood ⓘNews mood, the average tone of recent news (100 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation. Neutral
Recent news coverage is roughly neutral, about typical for how stocks are covered.

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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Infrastructure · 377 stocks

Beats the industry median on 2/12 measures
Overall it trails its industry peers.
Valuation
Quality Score 45 · Below median
Fair Value upside −63% · Bottom 25%
Profitability
Return on assets −1% · Below median
Net margin (TTM) −2% · Below median
Operating margin (TTM) −3% · Below median
Growth and dividend
Revenue growth 25% · Above median
Dividend yield (TTM) 4.4% · Top 25%
Balance sheet
Debt / equity 0.95× · Highest 25%

Valuation Multiplesvs Software - Infrastructure median · lower = cheaper

P/B 13.48× · Priciest 25%
P/S (TTM) 7.64× · Priciest 25%
P/FCF 33.4× · Priciest 25%
PEG 1.60× · Pricier than median

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)0 · sector 14
FUTURE (revenue growth)100 · sector 48
PAST (return on equity)0 · sector 15
HEALTH (low debt)53 · sector 98
DIVIDEND (yield)0 · sector 32

VALUE 0: the price sits above our fair-value range.

Context: sector, industry, market

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Software - Infrastructure stocks, each showing price versus our Fair Value estimate.

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Palo Alto Networks, Inc PANW $375.09 $114.50 −69%
CrowdStrike Holdings CRWD $242.49 $34.64 −86%
Fortinet, Inc FTNT $172.37 $164.92 −4%
Synopsys, Inc SNPS $378.47 $177.06 −53%
Block, Inc XYZ A$109.44 A$141.48 +29%
CoreWeave, Inc CRWV $83.35 $71.79 −14%
Twilio Inc TWLO $238.88 $59.44 −75%

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Zscaler Inc · Fair Value
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Cite: Fair Value Calculator (2026). "Zscaler Inc Fair Value". https://www.fairvalue-calculator.com/stock/ZS

Frequently asked questions

Is Zscaler Inc (ZS) overvalued or undervalued?
As of Sep 18, 2026, our model estimates a fair value of $120.76 versus a price of $197.31, about −39% upside (overvalued).
What is the fair value of ZS?
Our model-based fair value for Zscaler Inc is $120.76 (as of Sep 18, 2026), built from audited fundamentals. The current price: $197.31.
What is the quality score of ZS?
Zscaler Inc has a Quality Score of 45/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Zscaler Inc (ZS)?
Our model-based price target is the fair value of $120.76 (as of Sep 18, 2026) from 9 valuation models. Cautious scenario $63.03, optimistic scenario $172.96. It is a calculation from audited fundamentals, not an analyst target.
What is the Zscaler Inc stock forecast for 2026?
Our models put fair value at $120.76, about −39% upside versus a price of $197.31 (overvalued). Cautious scenario $63.03, optimistic scenario $172.96. The calculation is refreshed regularly with new filings.
What is the revenue of Zscaler Inc (ZS)?
Zscaler Inc reported trailing-twelve-month revenue of about $3.2B (latest available figure, as of Sep 18, 2026).
Does Zscaler Inc pay a dividend?
Zscaler Inc currently shows a dividend yield of about 4.39% relative to its recent price (as of Sep 18, 2026).
What growth is priced into Zscaler Inc (ZS)?
For today's price to be fair in a discounted-cash-flow model, Zscaler Inc would have to grow free cash flow by +21.3 % per year for five years (discount rate 9.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +44.0 % per year. As of Sep 18, 2026.
What discount rate (WACC) does the fair value of ZS use?
Our models discount Zscaler Inc at 9.1 %: a base by market capitalisation (large), damped by beta 0.96, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Zscaler Inc that is +21.3 % per year a year over ten years, using the same discount rate (9.1 %) and the same formula as our fair value.
How much growth has Zscaler Inc (ZS) delivered so far?
Over the past 5 years revenue at Zscaler Inc grew +44.0 % a year. The price currently implies +21.3 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Zscaler Inc (ZS) growing?
The median revenue growth in the sector is +8.0 % a year. That is the yardstick for the growth priced into Zscaler Inc (+21.3 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Zscaler Inc (ZS)?
The free-cash-flow yield on the price is 2.39 %: that much free cash flow Zscaler Inc produces per unit of market value. When it exceeds the discount rate of our models (9.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Zscaler Inc (ZS)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Zscaler Inc it is $120.76 per share (as of Sep 18, 2026), against a price of $197.31. It is the blended result of 9 valuation models (cash flow, earnings, asset, dividend).
Is Zscaler Inc stock overvalued or undervalued in 2026?
As of Sep 18, 2026, ZS trades above its calculated fair value: price $197.31, fair value $120.76, a gap of about −39% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of ZS?
No. The price is what the market pays today ($197.31); the fair value is what the company's own numbers justify ($120.76). For Zscaler Inc the two are $76.55 per share apart. That gap is exactly why we show both numbers side by side.
How much is Zscaler Inc worth?
The market values Zscaler Inc at about $30.5B (market capitalisation, as of Sep 18, 2026). Per share that is $197.31; our models calculate a fair value of $120.76 per share.
What do the bullish and bearish scenarios say about ZS?
Our models span a range for Zscaler Inc: cautious scenario $63.03, base $120.76, optimistic $172.96 per share (as of Sep 18, 2026, price $197.31). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the PEG ratio of ZS?
The PEG ratio of Zscaler Inc is 1.60 (P/E divided by earnings growth, as of Sep 18, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Zscaler Inc (ZS)?
Balance-sheet figures for Zscaler Inc (as of Sep 18, 2026): return on equity −3.7%, debt of 0.95 per unit of equity. They feed the Quality Score of 45/100, which measures business quality independently of the share price.
How far is ZS from its 52-week high?
Zscaler Inc trades at $197.31, about 41% below its 52-week high of $336.99 and 72% above the low of $114.63 (as of Sep 18, 2026). Distance from the high says nothing about value: that is what the fair value of $120.76 is for.
Which stocks are comparable to Zscaler Inc?
From the same area (Technology) we also value Microsoft Corporation, Oracle Corporation, Palantir Technologies Inc, Palo Alto Networks, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Zscaler Inc stock attractive at the current price?
The data as of Sep 18, 2026: price $197.31, calculated fair value $120.76 (−39%), Quality Score 45/100, from 9 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of ZS calculated?
We run Zscaler Inc through 9 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $120.76, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 16.1 % above its aggregate fair value. Zscaler Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Zscaler Inc (ZS)?
The closing price on Sep 18, 2026 was $197.31. Our model-based fair value is $120.76, about −39% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Zscaler Inc right now?
The price sits above even our optimistic bull case ($172.96). The favourable scenario is already priced in. The model range is unusually wide ($63.03 to $172.96). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid but not exceptional quality (45/100) and above fair value, neither a clear bargain nor a standout compounder.

Key figures of Zscaler Inc

How large is the market capitalisation of Zscaler Inc (ZS)?
The market capitalisation of Zscaler Inc is $30.5B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Zscaler Inc (ZS)?
The price-to-sales ratio of Zscaler Inc is 7.35 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Zscaler Inc (ZS)?
Earnings per share at Zscaler Inc are $−0.4800. Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Zscaler Inc (ZS)?
The dividend yield of Zscaler Inc is 4.4%. Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Zscaler Inc (ZS)?
The net margin of Zscaler Inc is −1.6% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Zscaler Inc (ZS)?
The return on equity (ROE) of Zscaler Inc is −3.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Zscaler Inc (ZS)?
On an EBIT basis the return on assets of Zscaler Inc is −6.3% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Zscaler Inc (ZS)?
The operating margin of Zscaler Inc is −3.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Zscaler Inc (ZS)?
Revenue at Zscaler Inc is growing +25.4% versus a year earlier (3y avg +34.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How much net cash does Zscaler Inc (ZS) hold?
Zscaler Inc holds more cash than debt, $592M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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