Zscaler Inc banner

Zscaler Inc
NASDAQ:ZS

Watchlist Manager
Zscaler Inc Logo
Zscaler Inc
NASDAQ:ZS
Watchlist
Price: 134.11 USD -1.03% Market Closed
Market Cap: $21.6B

EV/S

6.6
Current
50%
Cheaper
vs 3-y average of 13.1

Enterprise Value to Sales (EV/S) ratio compares a company`s total enterprise value to its revenue. It shows how much investors are paying for each dollar of the company`s sales, including both equity and debt.

EV/S
6.6
=
Enterprise Value
$20.6B
/
Revenue
$3B

Enterprise Value to Sales (EV/S) ratio compares a company`s total enterprise value to its revenue. It shows how much investors are paying for each dollar of the company`s sales, including both equity and debt.

EV/S
6.6
=
Enterprise Value
$20.6B
/
Revenue
$3B

Valuation Scenarios

Zscaler Inc is trading below its 3-year average

If EV/S returns to its 3-Year Average (13.1), the stock would be worth $267.73 (100% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-54%
Maximum Upside
+139%
Average Upside
37%
Scenario EV/S Value Implied Price Upside/Downside
Current Multiple 6.6 $134.11
0%
3-Year Average 13.1 $267.73
+100%
5-Year Average 15.7 $320.5
+139%
Industry Average 4.2 $86.53
-35%
Country Average 3 $62.1
-54%

Forward EV/S
Today’s price vs future revenue

Today's Enterprise Value Revenue Forward EV/S
$20.6B
/
Feb 2026
$3B
=
6.6
Current
$20.6B
/
Jul 2026
$3.4B
=
6
Forward
$20.6B
/
Jul 2027
$4.1B
=
5
Forward
$20.6B
/
Jul 2028
$4.8B
=
4.3
Forward
$20.6B
/
Jul 2029
$5.8B
=
3.6
Forward
$20.6B
/
Jul 2030
$6.8B
=
3
Forward
$20.6B
/
Jul 2031
$8B
=
2.6
Forward
$20.6B
/
Jul 2032
$9.5B
=
2.2
Forward
$20.6B
/
Jul 2033
$11.1B
=
1.9
Forward

Forward EV/S shows whether today’s EV/S still looks high or low once future revenue are taken into account.

Peer Comparison

All Multiples
EV/S
P/E
All Countries
Close
Market Cap EV/S P/E
US
Zscaler Inc
NASDAQ:ZS
21.5B USD 6.6 -318.4
US
Microsoft Corp
NASDAQ:MSFT
3.2T USD 10.3 26.5
US
Oracle Corp
NYSE:ORCL
497.3B USD 9.2 30.7
US
Palo Alto Networks Inc
NASDAQ:PANW
149.2B USD 14.8 100.3
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
115.2B USD 23 -708.8
US
ServiceNow Inc
NYSE:NOW
93.7B USD 6.4 53.3
US
VMware Inc
XETRA:BZF1
58B EUR 5.2 47.9
US
Fortinet Inc
NASDAQ:FTNT
63.7B USD 8.9 34.3
US
Xperi Holding Corp
LSE:0M2A
54.6B USD 123.8 491.7
CN
Knowledge Atlas Technology JSC Ltd
HKEX:2513
402.6B HKD 481.3 -74.6
CN
MiniMax Group Inc
HKEX:100
229.1B HKD 403.7 -15.6
P/E Multiple
Earnings Growth PEG
US
Zscaler Inc
NASDAQ:ZS
Average P/E: 112.1
Negative Multiple: -318.4
N/A N/A
US
Microsoft Corp
NASDAQ:MSFT
26.5
18%
1.5
US
Oracle Corp
NYSE:ORCL
30.7
37%
0.8
US
Palo Alto Networks Inc
NASDAQ:PANW
100.3
50%
2
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
Negative Multiple: -708.8 N/A N/A
US
ServiceNow Inc
NYSE:NOW
53.3
54%
1
US
V
VMware Inc
XETRA:BZF1
47.9
39%
1.2
US
Fortinet Inc
NASDAQ:FTNT
34.3
15%
2.3
US
Xperi Holding Corp
LSE:0M2A
491.7
N/A N/A
CN
K
Knowledge Atlas Technology JSC Ltd
HKEX:2513
Negative Multiple: -74.6 N/A N/A
CN
MiniMax Group Inc
HKEX:100
Negative Multiple: -15.6 N/A N/A

Market Distribution

Higher than 76% of companies in the United States of America
Percentile
76th
Based on 11 256 companies
76th percentile
6.6
Low
0 — 1.6
Typical Range
1.6 — 5.3
High
5.3 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 1.6
Median 3
70th Percentile 5.3
Max 4 613 320.1

Zscaler Inc
Glance View

Zscaler Inc., founded in 2007 by Jay Chaudhry, emerged as a transformative player in the cybersecurity landscape, responding to the escalating demand for secure cloud-based solutions. Operating at the convergence of cloud computing and security, Zscaler was designed to protect today's dynamic, borderless enterprise environments. The company's cloud-native architecture facilitates secure internet and private application access, effectively eliminating the need for traditional on-premises security hardware. By routing user traffic through its global network of data centers, Zscaler ensures seamless and secure connectivity without the traditional bottlenecks or vulnerabilities associated with legacy systems. This innovative approach positions Zscaler as a pioneer in Secure Access Service Edge (SASE) solutions, an increasingly critical paradigm shift in cybersecurity. Monetization for Zscaler revolves around a subscription-based model, where enterprises pay for access to its comprehensive suite of security services. These subscriptions generally reflect the scale and complexity of the client's IT environment, leading to a recurring revenue stream that is highly attractive in today’s tech economy. Its offerings are organized around core platforms like Zscaler Internet Access (ZIA) and Zscaler Private Access (ZPA), each catering to specific facets of security needs, from protecting against internet-borne threats to enabling secure access to internal applications. As digital transformation accelerates across industries, Zscaler's revenue has surged, driven by the augmentation of network security requirements and the widespread adoption of cloud services. The company's business model not only aligns with the evolving enterprise IT strategies but also provides scalability, enabling it to capture a growing market share in the cybersecurity sector.

ZS Intrinsic Value
121.28 USD
Overvaluation 10%
Intrinsic Value
Price $134.11
Get AI-powered insights for any company or topic.
Open AI Assistant

Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett