ZS Valuation

Zscaler Inc

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274.970

+3.98(1.469%)1D

Overview
Forecast
Valuation
Earnings

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 79.48 is considered Fairly compared with the five-year average of 195.35. The fair price of Zscaler Inc (ZS) is between 103.92 to 1043.60 according to relative valuation methord.

Relative Value

Fair Zone

103.92-1043.60

Current Price：274.97

Fair

79.48

Trailing

Forward

51.59

EV/EBITDA

Zscaler Inc. (ZS) has a current EV/EBITDA of 51.59. The 5-year average EV/EBITDA is 119.01. The thresholds are as follows: Strongly Undervalued below -63.11, Undervalued between -63.11 and 27.95, Fairly Valued between 210.06 and 27.95, Overvalued between 210.06 and 301.12, and Strongly Overvalued above 301.12. The current Forward EV/EBITDA of 51.59 falls within the Historic Trend Line -Fairly Valued range.

60.87

EV/EBIT

Zscaler Inc. (ZS) has a current EV/EBIT of 60.87. The 5-year average EV/EBIT is 163.86. The thresholds are as follows: Strongly Undervalued below -111.73, Undervalued between -111.73 and 26.07, Fairly Valued between 301.66 and 26.07, Overvalued between 301.66 and 439.46, and Strongly Overvalued above 439.46. The current Forward EV/EBIT of 60.87 falls within the Historic Trend Line -Fairly Valued range.

14.02

Zscaler Inc. (ZS) has a current PS of 14.02. The 5-year average PS is 19.42. The thresholds are as follows: Strongly Undervalued below -2.32, Undervalued between -2.32 and 8.55, Fairly Valued between 30.29 and 8.55, Overvalued between 30.29 and 41.16, and Strongly Overvalued above 41.16. The current Forward PS of 14.02 falls within the Historic Trend Line -Fairly Valued range.

38.93

P/OCF

Zscaler Inc. (ZS) has a current P/OCF of 38.93. The 5-year average P/OCF is 65.24. The thresholds are as follows: Strongly Undervalued below -16.40, Undervalued between -16.40 and 24.42, Fairly Valued between 106.06 and 24.42, Overvalued between 106.06 and 146.88, and Strongly Overvalued above 146.88. The current Forward P/OCF of 38.93 falls within the Historic Trend Line -Fairly Valued range.

55.60

P/FCF

Zscaler Inc. (ZS) has a current P/FCF of 55.60. The 5-year average P/FCF is 91.09. The thresholds are as follows: Strongly Undervalued below -21.44, Undervalued between -21.44 and 34.83, Fairly Valued between 147.35 and 34.83, Overvalued between 147.35 and 203.61, and Strongly Overvalued above 203.61. The current Forward P/FCF of 55.60 falls within the Historic Trend Line -Fairly Valued range.

Zscaler Inc (ZS) has a current Price-to-Book (P/B) ratio of 23.72. Compared to its 3-year average P/B ratio of 29.82 , the current P/B ratio is approximately -20.45% higher. Relative to its 5-year average P/B ratio of 40.46, the current P/B ratio is about -41.38% higher. Zscaler Inc (ZS) has a Forward Free Cash Flow (FCF) yield of approximately 1.80%. Compared to its 3-year average FCF yield of 1.87%, the current FCF yield is approximately -3.59% lower. Relative to its 5-year average FCF yield of 1.31% , the current FCF yield is about 37.23% lower.

23.72

P/B

Median3y

29.82

Median5y

40.46

1.80

FCF Yield

Median3y

1.87

Median5y

1.31

Competitors Valuation Multiple

The average P/S ratio for ZS's competitors is 9.74, providing a benchmark for relative valuation. Zscaler Inc Corp (ZS) exhibits a P/S ratio of 14.02, which is 44.04% above the industry average. Given its robust revenue growth of 22.57%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Take-Two Interactive Software Inc

Performance Decomposition

Market capitalization of ZS increased by 37.50% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -463.08 to -1.08K.

The secondary factor is the Revenue Growth, contributed 22.57%to the performance.

Overall, the performance of ZS in the past 1 year is driven by P/E Change. Which is more unsustainable.

22.57%

553.20M → 678.03M

Revenue Growth

-117.63%

3.46 → -0.61

Margin Expansion

132.56%

-463.08 → -1.08K

P/E Change

37.50%