ZS

$169.39

Public overview and default valuation.

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Valuation Details
Default assumptions: 10Y forecast, 9% market return, 2.5% terminal growth, 12.00% trendline growth.
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$270.43

With 20% Margin of Safety (MoS):

$216.34
27.72% upside
Capital Efficiency
Average Quarterly ROIC
-1.37%
Cost of Capital (estimated)10%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.
Fundamental Score
63
NeutralWeighted across 6 signals
DCF Discount
27.7% discount to price
96
FCF Yield
4.9% trailing FCF yield
73
ROIC vs WACC
ROIC -1.4% vs WACC 10.0% (-0.1x)
0
Net Debt / FCF
Net cash position
100
Buybacks
Share count growing
30
FCF CAGR (5Y)
59.0% 5Y FCF CAGR
100
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Buybacks.
Narrative Score
49
Weak
Weighted across 5 recent drivers · Last 30 days-7 vs previous · +1 new driversVs 6-Month Baseline: Low (0th pct)
Trend: Deteriorating downConfidence: 89%Updated: 2h ago
Sources: 73 (News 49 · Analyst 24)
Drivers
23 regulatory scrutiny-0.3
26 news sentiment+0.2
Analyst upgrades+0.0
Analyst downgrades-0.0
22 analyst reiterations0.0
Other Metrics
P/E-654.6
Profit Margin-1.4%
Owner Earnings$320.23m
One Dollar Premise0.00%
Debt/Equity2.23
Current Ratio1.52
PEG-176.732
Free Cash Flow (in millions)
20152016201720182019202020212022202320242025
$3-$6$2$32$88$131$260$412$591$975$1,331
How Intrinziq Estimates Fair Value

Intrinziq estimates Zscaler, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Zscaler, Inc.Technology

Zscaler, Inc. operates as a cloud security company worldwide. The company provides Zscaler Internet Access solution that provides users, servers, operational technology, Internet of Things device secure access to externally managed applications, including software-as-a-service (SaaS) applications and Internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds. It also offers Zscaler Digital Experience that measures end-to-end user experience across business applications, as well as provides an easy to understand digital experience score for each user, application, and location within an enterprise. In addition, the company provides workload segmentation solutions comprising Zscaler Cloud Security Posture Management that identifies and remediates application misconfigurations in SaaS, infrastructure as a service, and platform as a service to reduce risk and ensure compliance with industry and organizational benchmarks; and Zscaler Cloud Workload Segmentation, which is designed to secure application-to-application communications inside public clouds and data centers to stop lateral threat movement, as well as prevents application compromise and reduces the risk of data breaches. Its platform modules include Zscaler Central Authority, Zscaler Enforcement Node, and Zscaler Log Servers. It serves customers in airlines and transportation, conglomerates, consumer goods and retail, financial services, healthcare, manufacturing, media and communications, public sector and education, technology, and telecommunications services industries. The company was formerly known as SafeChannel, Inc., and changed its name to Zscaler, Inc. in August 2008. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California.

Last updated: Feb 06, 2026
Data sources: Financial Modeling Prep
This valuation is based on assumptions and publicly available data. It is not financial advice or a recommendation to buy or sell any security. Always do your own research before making investment decisions.