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 62.15 is considered Fairly compared with the five-year average of 178.58. The fair price of Zscaler Inc (ZS) is between 72.01 to 1116.30 according to relative valuation methord.
Relative Value
Fair Zone
72.01-1116.30
Current Price：242.08
Fair
62.15
PE
1Y
3Y
5Y
Trailing
Forward
40.59
EV/EBITDA
Zscaler Inc. (ZS) has a current EV/EBITDA of 40.59. The 5-year average EV/EBITDA is 109.62. The thresholds are as follows: Strongly Undervalued below -70.60, Undervalued between -70.60 and 19.51, Fairly Valued between 199.73 and 19.51, Overvalued between 199.73 and 289.84, and Strongly Overvalued above 289.84. The current Forward EV/EBITDA of 40.59 falls within the Historic Trend Line -Fairly Valued range.
47.86
EV/EBIT
Zscaler Inc. (ZS) has a current EV/EBIT of 47.86. The 5-year average EV/EBIT is 149.23. The thresholds are as follows: Strongly Undervalued below -122.42, Undervalued between -122.42 and 13.41, Fairly Valued between 285.05 and 13.41, Overvalued between 285.05 and 420.88, and Strongly Overvalued above 420.88. The current Forward EV/EBIT of 47.86 falls within the Historic Trend Line -Fairly Valued range.
11.26
PS
Zscaler Inc. (ZS) has a current PS of 11.26. The 5-year average PS is 18.41. The thresholds are as follows: Strongly Undervalued below -2.84, Undervalued between -2.84 and 7.78, Fairly Valued between 29.03 and 7.78, Overvalued between 29.03 and 39.66, and Strongly Overvalued above 39.66. The current Forward PS of 11.26 falls within the Historic Trend Line -Fairly Valued range.
32.39
P/OCF
Zscaler Inc. (ZS) has a current P/OCF of 32.39. The 5-year average P/OCF is 61.12. The thresholds are as follows: Strongly Undervalued below -18.62, Undervalued between -18.62 and 21.25, Fairly Valued between 100.99 and 21.25, Overvalued between 100.99 and 140.86, and Strongly Overvalued above 140.86. The current Forward P/OCF of 32.39 falls within the Historic Trend Line -Fairly Valued range.
42.08
P/FCF
Zscaler Inc. (ZS) has a current P/FCF of 42.08. The 5-year average P/FCF is 85.27. The thresholds are as follows: Strongly Undervalued below -24.82, Undervalued between -24.82 and 30.22, Fairly Valued between 140.31 and 30.22, Overvalued between 140.31 and 195.35, and Strongly Overvalued above 195.35. The current Forward P/FCF of 42.08 falls within the Historic Trend Line -Fairly Valued range.
Zscaler Inc (ZS) has a current Price-to-Book (P/B) ratio of 19.47. Compared to its 3-year average P/B ratio of 27.97 , the current P/B ratio is approximately -30.40% higher. Relative to its 5-year average P/B ratio of 39.48, the current P/B ratio is about -50.68% 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 1.94%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 1.42% , the current FCF yield is about -100.00% lower.
19.47
P/B
Median3y
27.97
Median5y
39.48
2.38
FCF Yield
Median3y
1.94
Median5y
1.42
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 30.97% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -696.12 to -897.37.
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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