ZS Relative Valuation
ZS's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ZS is overvalued; if below, it's undervalued.
Historical Valuation
Zscaler Inc (ZS) is now in the Fair zone, suggesting that its current forward PE ratio of 62.57 is considered Fairly compared with the five-year average of 180.21. The fair price of Zscaler Inc (ZS) is between 73.74 to 1116.22 according to relative valuation methord.
Relative Value
Fair Zone
73.74-1116.22
Current Price：241.85
Fair
62.10
PE
1Y
3Y
5Y
Trailing
Forward
40.66
EV/EBITDA
Zscaler Inc. (ZS) has a current EV/EBITDA of 40.66. The 5-year average EV/EBITDA is 110.52. The thresholds are as follows: Strongly Undervalued below -70.54, Undervalued between -70.54 and 19.99, Fairly Valued between 201.04 and 19.99, Overvalued between 201.04 and 291.57, and Strongly Overvalued above 291.57. The current Forward EV/EBITDA of 40.66 falls within the Historic Trend Line -Fairly Valued range.
47.94
EV/EBIT
Zscaler Inc. (ZS) has a current EV/EBIT of 47.94. The 5-year average EV/EBIT is 150.65. The thresholds are as follows: Strongly Undervalued below -122.57, Undervalued between -122.57 and 14.04, Fairly Valued between 287.26 and 14.04, Overvalued between 287.26 and 423.87, and Strongly Overvalued above 423.87. The current Forward EV/EBIT of 47.94 falls within the Historic Trend Line -Fairly Valued range.
11.28
PS
Zscaler Inc. (ZS) has a current PS of 11.28. The 5-year average PS is 18.51. The thresholds are as follows: Strongly Undervalued below -2.84, Undervalued between -2.84 and 7.83, Fairly Valued between 29.19 and 7.83, Overvalued between 29.19 and 39.87, and Strongly Overvalued above 39.87. The current Forward PS of 11.28 falls within the Historic Trend Line -Fairly Valued range.
32.44
P/OCF
Zscaler Inc. (ZS) has a current P/OCF of 32.44. The 5-year average P/OCF is 61.58. The thresholds are as follows: Strongly Undervalued below -18.81, Undervalued between -18.81 and 21.38, Fairly Valued between 101.77 and 21.38, Overvalued between 101.77 and 141.97, and Strongly Overvalued above 141.97. The current Forward P/OCF of 32.44 falls within the Historic Trend Line -Fairly Valued range.
42.14
P/FCF
Zscaler Inc. (ZS) has a current P/FCF of 42.14. The 5-year average P/FCF is 85.94. The thresholds are as follows: Strongly Undervalued below -25.14, Undervalued between -25.14 and 30.40, Fairly Valued between 141.48 and 30.40, Overvalued between 141.48 and 197.02, and Strongly Overvalued above 197.02. The current Forward P/FCF of 42.14 falls within the Historic Trend Line -Fairly Valued range.
Zscaler Inc (ZS) has a current Price-to-Book (P/B) ratio of 19.60. Compared to its 3-year average P/B ratio of 28.13 , the current P/B ratio is approximately -30.33% higher. Relative to its 5-year average P/B ratio of 39.62, the current P/B ratio is about -50.53% higher. Zscaler Inc (ZS) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 1.93%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 1.41% , the current FCF yield is about -100.00% lower.
19.46
P/B
Median3y
28.13
Median5y
39.62
2.38
FCF Yield
Median3y
1.93
Median5y
1.41
Competitors Valuation Multiple
The average P/S ratio for ZS's competitors is , providing a benchmark for relative valuation. Zscaler Inc Corp (ZS) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 25.50%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ZS increased by 34.06% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -696.03 to -918.76.
The secondary factor is the Revenue Growth, contributed 25.50%to the performance.
Overall, the performance of ZS in the past 1 year is driven by P/E Change. Which is more unsustainable.
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