ZS Zscaler Inc.
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Daily prices, adjusted for splits. P/E and P/S value each day on the results published by then; a gap in P/E means the trailing year had no profit.
Software - Infrastructure · San Jose, CA · 8,700 employees · zscaler.com
Zscaler delivers cloud-based cybersecurity software designed to safeguard enterprise digital environments. Its platform securely connects users, devices, and internal workloads to external applications and data while defending against digital threats. The company generates revenue by providing threat protection, access control, and operational monitoring services to commercial and public sector clients.
Bull case
The business has an opportunity to sell artificial intelligence tools across its established customer base. Revenue growth has also accelerated, though this includes acquired businesses and reflects a trend common across tracked peers.
- Trades at the 17th percentile of its own valuation history.
- Annual revenue growth rose from +23% to +25%, including acquired businesses.
- The share price trend is rising.
Bear case
Stock-based compensation consumes a heavy share of the company's revenue. A shift toward artificial intelligence could also reduce its total pool of paid seats given its per-user pricing structure.
- The price assumes about +68% a year cash-flow growth, more than the +7% a year it delivered, including acquisitions.
- Stock pay equals 25% of revenue.
Features
- V-ACCELERATING Growth accelerating Annual revenue growth rose from +23% to +25%, including acquired businesses. Shared by most companies we track
- G-AGENCY Heavy stock pay Stock pay equals 25% of revenue.
- T8 Lazarus Cheap against its own history, and the price trend has turned up.
AI impact
Sells AI to its customers Cuts both ways
The company sells cloud security software to connect and protect users, applications, and emerging artificial intelligence agents. It can expand sales by offering new security and automation features to its existing customer base, though its reliance on per-user subscription pricing creates risk if customers reduce their user counts.
Where AI helps it
- Can sell AI to a large base of existing customers (minor)
Where AI could hurt it
- Charges per user, and AI could shrink the number of paid users (minor)
In the company's words
• Security for AI enables organizations to adopt AI with confidence by discovering, governing and protecting AI applications, models, agents, identities, data, endpoints and workflows across the enterprise.
We leverage organic account expansion to sell subscriptions for additional users, additional solutions and premium solution bundles that contain more functionality, including non-user-based metered pricing models.
Assessed by AI from the company's own annual report filed 3 Sep 2026. A reading of the business, not a forecast or a recommendation.
Valuation position
ZS is at the 17th percentile of its own valuation history. Depending on how far back you look, it ranges from the 17th to the 24th percentile. This is a relative measurement, not a price target or recommendation, and it assumes the business is still the one its history describes.
Price ladder
The measured price sits in the Reference zone. These are reference zones, not buy instructions or forecasts that the prices will be reached.
What the price assumes
The measured price implies roughly +67.7% annual cash-flow growth, between +56.5% and +76.1% under other reasonable assumptions. Over the last three years it delivered +7.0% a year.
An estimate that depends on its assumptions, not a forecast.
Quality versus peers
Each dimension is shown on its own; they are not combined into a score.
Current analyst snapshot
Shown for reference only; not used in any measurement.
What would have to break
- Not triggered — Revenue decline
- Not triggered — Margin break
- Not triggered — Cash burn with rising debt
- Not triggered — Heavy dilution
- Not triggered — Warning language in filings
News
1 brief featuring ZS, newest first.
