Zscaler, Inc. ZS
Composite 40/100; the shares have moved about 75% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Valuation ranks 13/100 — a strong mark against it.
Growth ranks 82/100 — a strong point in its favour. Balance-sheet strength ranks 60/100 — a slight point in its favour.
Valuation ranks 13/100 — a strong mark against it. Quality ranks 21/100 — a strong mark against it. Momentum ranks 36/100 — a moderate mark against it.
What the company does Zscaler, Inc. (ZS) is a cloud security company offering Zero Trust security solutions, including Zscaler Internet Access, Private Access, and Cloud Sandbox, alongside data security and security operations products. Its portfolio addresses cyberthreat protection, data loss prevention, and digital experience monitoring for enterprises.
Key financials Zscaler’s gross margin stands at 76.7%, but operating and net margins are negative at -3.3% and -2.4%, respectively. Revenue growth is strong at 25.4%, while EPS growth is flat at 0.0%. The company has a debt/equity ratio of 0.79 and a current ratio of 1.86, indicating moderate liquidity but high leverage.
Stock health The stock shows weak momentum, down -55.97% from its 52-week high, with 12-month performance at -48.84%. The RSI(14) is 53.70, suggesting neutral momentum. Quality and valuation scores are poor (18.2 and 44.4, respectively), while growth is strong (67.7).
Price vs fair value The stock trades at a **discount** of 9.50% to our fair-value estimate of 162.55 and a **discount** of 29.76% to the analyst 12-month target of 192.55. - Recent headlines highlight AI-driven cybersecurity trends and Zscaler’s market outperformance (Zacks, StockStory). - Analysts note both strong fundamentals and risks (StockStory). - Valuation metrics (EV/EBITDA 161.00, P/B 10.51) suggest rich pricing relative to growth.
Looking forward Forward P/E of 33.56 implies high expectations for future earnings growth. Execution on Zero Trust adoption and AI security integration will be critical for margin recovery and valuation expansion. Monitor revenue growth sustainability and margin improvement trends.
This is not investment advice. Sideravia provides automated, data-driven analysis for information and education only. Nothing on this page is a personal recommendation or an invitation to buy or sell any security, and it does not consider your objectives or financial situation. Assessments are generated by rules applied uniformly to every covered stock — how our scores work.
Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.