Zscaler Inc
NASDAQ:ZS

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Zscaler Inc
NASDAQ:ZS
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Price: 195.73 USD -0.5% Market Closed
Market Cap: 29.8B USD
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Intrinsic Value

The intrinsic value of one ZS stock under the Base Case scenario is 90.52 USD. Compared to the current market price of 195.73 USD, Zscaler Inc is Overvalued by 54%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

ZS Intrinsic Value
90.52 USD
Overvaluation 54%
Intrinsic Value
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Base Case
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Zscaler Inc

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Business Breakdown

Zscaler Inc. stands at the forefront of cloud security solutions, serving as a beacon for organizations navigating the complexities of digital transformation. Founded in 2008, the company has pioneered a revolutionary approach to internet security, enabling businesses to move away from traditional on-premises defenses. Instead, Zscaler offers a cloud-based platform that securely connects users to applications, regardless of their location. This shift is particularly relevant in today’s world, where remote work has become the norm and cyber threats are increasingly sophisticated. With its unique Zero Trust architecture, Zscaler effectively eliminates the need for VPNs, helping companies secur...

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Zscaler Inc

Current Assets 3.4B
Cash & Short-Term Investments 2.4B
Receivables 747.2m
Other Current Assets 239.7m
Non-Current Assets 1.3B
Long-Term Investments 9.8m
PP&E 472.9m
Intangibles 480.9m
Other Non-Current Assets 344.8m
Current Liabilities 3.1B
Accounts Payable 23.3m
Accrued Liabilities 303.4m
Short-Term Debt 1.1B
Other Current Liabilities 1.6B
Non-Current Liabilities 318m
Other Non-Current Liabilities 318m
Efficiency

Earnings Waterfall
Zscaler Inc

Revenue
2.2B USD
Cost of Revenue
-477.1m USD
Gross Profit
1.7B USD
Operating Expenses
-1.8B USD
Operating Income
-121.5m USD
Other Expenses
63.8m USD
Net Income
-57.7m USD

Free Cash Flow Analysis
Zscaler Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

The company reported an impressive Q4 with all key metrics surpassing guidance. Revenue grew by 30% YoY to $593 million, leading to a new milestone of $1 billion in quarterly bookings. For the full fiscal year, revenue rose 34% YoY while free cash flow climbed 75%. Looking ahead, the company expects fiscal 2025 revenue of $2.6-$2.62 billion, representing 20-21% YoY growth, and aims to reach over $3 billion in ARR. Investments will focus on expanding their Zero Trust Exchange platform and integrating AI solutions to address growing security needs for applications, workloads, and IoT devices.

What is Earnings Call?
Fundamental Scores

ZS Profitability Score
Profitability Due Diligence

Zscaler Inc's profitability score is 45/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Exceptional 3-Years Revenue Growth
Positive Free Cash Flow
ROE is Increasing
45/100
Profitability
Score

Zscaler Inc's profitability score is 45/100. The higher the profitability score, the more profitable the company is.

ZS Solvency Score
Solvency Due Diligence

Zscaler Inc's solvency score is 51/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
Negative Net Debt
Long-Term Solvency
Low D/E
51/100
Solvency
Score

Zscaler Inc's solvency score is 51/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

ZS Price Targets Summary
Zscaler Inc

Wall Street analysts forecast ZS stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for ZS is 222.41 USD with a low forecast of 166.65 USD and a high forecast of 420 USD.

Lowest
Price Target
166.65 USD
15% Downside
Average
Price Target
222.41 USD
14% Upside
Highest
Price Target
420 USD
115% Upside
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Dividends

Zscaler Inc
does not pay dividends
Shareholder Yield

Current shareholder yield for ZS is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
No dividends
Buyback Yield
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Average
Highest
Debt Paydown Yield
Lowest
Average
Highest

Ownership

ZS Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
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12 Months
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ZS News

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Profile

Zscaler Inc Logo
Zscaler Inc

Country

United States of America

Industry

Technology

Market Cap

29.8B USD

Dividend Yield

0%

Description

Zscaler, Inc. engages in the provision of cloud-based internet security platform. The company is headquartered in San Jose, California and currently employs 3,153 full-time employees. The company went IPO on 2018-03-16. The Company’s architecture is designed to allow users and devices to safely access authorized applications and services in the cloud using the Internet as the preferred connectivity medium. Zscaler’s security and user experience solutions are purpose-built on a multi-tenant, distributed cloud exchange that secures access for users and devices to applications and services, regardless of location. The firm delivers its solutions using a software-as-a-service (SaaS) business model and sells subscriptions to customers to access its cloud platform, together with related support services. The Company’s cloud services include Zscaler Internet Access (ZIA), Zscaler Private Access (ZPA), and Zscaler Digital Experience (ZDX).

Contact

CALIFORNIA
San Jose
120 Holger Way,
+14085330288.0
www.zscaler.com

IPO

2018-03-16

Employees

3 153

Officers

Co-Founder, CEO & Chairman of the Board
Mr. Jagtar Singh Chaudhry
Chief Financial Officer
Mr. Remo E. Canessa
CTO and Executive VP of Research & Development
Mr. Syam Nair
Chief Legal Officer & Secretary
Mr. Robert S. Schlossman
Chief Revenue Officer & President of Global Sales
Mr. Mike Rich
Founder & Chief Architect
Mr. K. Kailash
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Chief Information Officer
Ms. Praniti Lakhwara
Vice President of Investor Relations & Strategic Finance
Mr. Ashwin Kesireddy
Global Public Relations Director
Ms. Natalia Wodecki
Chief Marketing Officer
Ms. Joyce Kim
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See Also

Discover More
What is the Intrinsic Value of one ZS stock?

The intrinsic value of one ZS stock under the Base Case scenario is 90.52 USD.

Is ZS stock undervalued or overvalued?

Compared to the current market price of 195.73 USD, Zscaler Inc is Overvalued by 54%.

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