Zscaler, Inc. (ZS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-60.2%

$92.61

vs $232.47 price

Levered DCF

$153.97

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

4.93

Safe zone

Rating

C-

Overall 1 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	-387.69×	-1,057.63×	-459.87×	-114.56×	-55.42×	-122.23×	-145.9×	-366.39×
P/B	9.32×	24.51×	21.06×	32.06×	37.72×	60.51×	34.64×	33.75×
P/S	7.23×	16.49×	12.38×	14.38×	19.82×	47.54×	38.94×	34.38×
EV / EBITDA	134.83×	386.96×	411.21×	-212.93×	-78.03×	-195.34×	-202.76×	5,053.51×
Gross margin	76.8%	76.9%	77.9%	77.6%	77.7%	77.6%	77.5%	80.2%
Operating margin	-4.0%	-4.8%	-5.7%	-13.3%	-30.0%	-30.8%	-22.0%	-7.3%
Net margin	-1.9%	-1.6%	-2.7%	-12.5%	-35.8%	-38.9%	-26.7%	-9.5%
Current ratio	1.7×	2.01×	1.09×	1.88×	1.99×	2.57×	3.73×	1.89×
Debt / equity	0.71×	1×	0.97×	1.67×	1.82×	1.82×	1.87×	0×
Interest coverage	-11.3×	-13.49×	-9.46×	-31.59×	-5.79×	-3.89×	-18.88×	0×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	-2.4%	-2.3%	-4.5%	-27.9%	-68.1%	-49.5%	-23.7%	-9.3%
Return on invested capital	-2.7%	-3.2%	-4.4%	-10.2%	-19.0%	-13.3%	-6.7%	-6.5%
Return on assets	-0.8%	-0.6%	-1.2%	-5.6%	-13.8%	-11.6%	-6.3%	-4.7%
Free cash flow yield	3.5%	1.6%	2.2%	1.4%	1.1%	0.4%	0.2%	0.3%
Earnings yield	-0.3%	-0.1%	-0.2%	-0.9%	-1.8%	-0.8%	-0.7%	-0.3%
Enterprise value	$25.2B	$43.5B	$26.6B	$23.2B	$21.7B	$32.7B	$17.6B	$10.3B
Net debt / EBITDA	4.97×	-5.27×	-2.86×	0.47×	-0.12×	-4.12×	-8.82×	-38.38×
Cash conversion cycle (days)	103	108	106	113	95	109	105	75