Valuation Analysis of Zscaler Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 27 2026
0mins
Source: Yahoo Finance
- Stock Performance: Zscaler's recent closing price is $132.26, with a weekly return of 5.9%, yet it has seen a 40.0% decline year-to-date and a 58.1% drop over the past year, indicating market concerns about its future growth prospects.
- Cash Flow Analysis: The latest twelve-month free cash flow for Zscaler is reported at $852.30 million, with projections suggesting it could reach $1,755.13 million by 2030; the discounted cash flow model estimates an intrinsic value of approximately $205.95 per share, indicating a 35.8% undervaluation.
- Price-to-Sales Ratio Comparison: Zscaler currently trades at a P/S ratio of 6.74x, which is above the software industry average of 3.25x but below the peer average of 9.28x, highlighting its relative value in the market.
- Investor Sentiment: The focus on cybersecurity demand has influenced Zscaler's stock performance; despite a valuation score of 5 out of 6, investor expectations for future growth remain cautious, reflecting broader market sentiment.
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Analyst Views on ZS
Wall Street analysts forecast ZS stock price to rise
30 Analyst Rating
24 Buy
6 Hold
0 Sell
Strong Buy
Current: 150.420
Low
260.00
Averages
325.62
High
390.00
Current: 150.420
Low
260.00
Averages
325.62
High
390.00
About ZS
Zscaler, Inc. is a cloud security company. The Company has developed a platform incorporating core security functionalities needed to enable fast and secure access to cloud resources based on identity, context and an organization's policies. Its Zscaler Zero Trust Exchange is a cloud-native platform that securely connects users, devices, applications and workloads, including artificial intelligence (AI) agents, without relying on hub-and-spoke network architecture and firewall-centric security. It delivers its solutions using a software-as-a-service (SaaS) business model and sells subscriptions to customers to access its cloud platform, together with related support services. Its services include Zscaler Internet Access (ZIA), Zscaler Private Access (ZPA), and Zscaler Digital Experience (ZDX). ZIA provides secure access to externally managed applications, including SaaS applications and internet destinations, regardless of device, location or network.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Investor Rights Protection: Faruq & Faruqi encourages investors who purchased Zscaler stock or options and suffered losses during this period to contact them to evaluate their legal rights and potential claims, indicating the firm's commitment to supporting affected investors.
- Historical Performance Review: Since its founding in 1995, Faruq & Faruqi has recovered hundreds of millions of dollars for investors, showcasing its extensive experience and successful track record in securities litigation, which further enhances investor trust in their capabilities.
See More
