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Zscaler Inc
NASDAQ:ZS

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Zscaler Inc
NASDAQ:ZS
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Price: 135.505 USD 1.04%
Market Cap: $21.8B

P/OCF

19.5
Current
50%
Cheaper
vs 3-y average of 39.1

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
19.5
=
Market Cap
$22.4B
/
Operating Cash Flow
$1.1B

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
19.5
=
Market Cap
$22.4B
/
Operating Cash Flow
$1.1B

Valuation Scenarios

Zscaler Inc is trading below its 3-year average

If P/OCF returns to its 3-Year Average (39.1), the stock would be worth $271.3 (100% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-32%
Maximum Upside
+153%
Average Upside
54%
Scenario P/OCF Value Implied Price Upside/Downside
Current Multiple 19.5 $135.51
0%
3-Year Average 39.1 $271.3
+100%
5-Year Average 49.4 $342.65
+153%
Industry Average 18.7 $129.88
-4%
Country Average 13.3 $92.54
-32%

Forward P/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
All Countries
Close
Market Cap P/OCF P/E
US
Zscaler Inc
NASDAQ:ZS
21.5B USD 19.5 -321.7
US
Microsoft Corp
NASDAQ:MSFT
3.2T USD 19.8 26.7
US
Oracle Corp
NYSE:ORCL
497.3B USD 20.4 29.6
US
Palo Alto Networks Inc
NASDAQ:PANW
149.2B USD 32.4 100.5
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
115.2B USD 71.2 -706.9
US
ServiceNow Inc
NYSE:NOW
93.7B USD 17.3 53.5
US
VMware Inc
XETRA:BZF1
58B EUR 13.4 47.9
US
Fortinet Inc
NASDAQ:FTNT
63.7B USD 24.6 34.4
US
Xperi Holding Corp
LSE:0M2A
54.6B USD 345.5 491.7
CN
Knowledge Atlas Technology JSC Ltd
HKEX:2513
402.6B HKD -156 -74.6
CN
MiniMax Group Inc
HKEX:100
229.1B HKD -113.1 -15.6
P/E Multiple
Earnings Growth PEG
US
Zscaler Inc
NASDAQ:ZS
Average P/E: 112
Negative Multiple: -321.7
N/A N/A
US
Microsoft Corp
NASDAQ:MSFT
26.7
18%
1.5
US
Oracle Corp
NYSE:ORCL
29.6
37%
0.8
US
Palo Alto Networks Inc
NASDAQ:PANW
100.5
50%
2
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
Negative Multiple: -706.9 N/A N/A
US
ServiceNow Inc
NYSE:NOW
53.5
54%
1
US
V
VMware Inc
XETRA:BZF1
47.9
39%
1.2
US
Fortinet Inc
NASDAQ:FTNT
34.4
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

In line with most companies in the United States of America
Percentile
69th
Based on 9 488 companies
69th percentile
19.5
Low
0 — 8.8
Typical Range
8.8 — 20.1
High
20.1 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 8.8
Median 13.3
70th Percentile 20.1
Max 3 188 432.5

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
121.282 USD
Overvaluation 10%
Intrinsic Value
Price $135.505
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