Zscaler, Inc. (ZS) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Technology · Software - Infrastructure
Is Zscaler, Inc. a safe investment right now?
Zscaler, Inc.'s Altman Z-Score of 3.59 places it in the safe zone. Fair value estimate is not available for this stock. Moat rating: 2.6/5 stars.
Could Zscaler, Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 3.59 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives ZS's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.3839 | 1.2 | 0.46 |
| B · Retained Earnings / Total Assets | RE / TA | -0.1853 | 1.4 | -0.26 |
| C · EBIT / Total Assets | EBIT / TA | -0.002 | 3.3 | -0.01 |
| D · Market Cap / Total Liabilities | MCap / TL | 4.9644 | 0.6 | 2.98 |
| E · Revenue / Total Assets | Rev / TA | 0.4164 | 1.0 | 0.42 |
How has ZS's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 6.08 | Safe |
| 2023 | 5.09 | Safe |
| 2024 | 4.19 | Safe |
| 2025 | 3.59 | Safe |
Source: Calculated from ZS's latest 10-K filing on SEC EDGAR.
What is Zscaler, Inc. actually worth?
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Zscaler, Inc. have a durable competitive advantage?
Moat rating: 2.6/5.
What makes up ZS's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 2/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 3/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is ZS's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | -21.2% | — |
| 2023 | -9.5% | Rising |
| 2024 | -0.7% | Rising |
| 2025 | -0.4% | Stable |
Source: ROIC calculated from SEC EDGAR filings.
Is Zscaler, Inc.'s dividend safe?
Zscaler, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $2.7B | $2.2B | $1.1B | Rising |
| Net Income | −$0.0B | −$0.1B | −$0.4B | Rising |
| Free Cash Flow | $0.7B | $0.6B | $0.2B | Rising |
| Gross Margin | 76.9% | 78.0% | 77.8% | Stable |
Recent events that affect our ZS analysis
ZS earnings report scheduled
Upcoming report. Consensus EPS estimate: $1.01. Revenue estimate: $835.8M.
ZS analyst consensus: 83% bullish (40 of 48 analysts)
8 Strong Buy, 32 Buy, 8 Hold, 0 Sell, 0 Strong Sell. Consensus target: $230.45 (61.5% upside).
ZS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZS beat EPS estimates by 12.6%
Reported EPS: $1.01 vs estimate $0.90.
ZS filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
ZS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZS beat EPS estimates by 36.7%
Reported EPS: $-0.07 vs estimate $-0.11.
ZS filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
ZS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZS filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
ZS beat EPS estimates by 11.0%
Reported EPS: $0.89 vs estimate $0.80.
ZS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZS beat EPS estimates by 10.8%
Reported EPS: $0.84 vs estimate $0.76.
ZS filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
ZS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZS filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
ZS beat EPS estimates by 12.7%
Reported EPS: $0.78 vs estimate $0.69.
ZS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
ZS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about Zscaler, Inc.
What is Zscaler, Inc. stock price today?
Zscaler, Inc. (ZS) stock price is $142.66 as of the latest market close, traded on the NASDAQ exchange.
What does Zscaler, Inc. do?
Zscaler, Inc. operates as a cloud security company worldwide. It offers cyberthreat protection products, including Zscaler Internet Access, which provides threat protection, cloud sandbox, and cloud browser isolation; Zscaler Private Access solution that includes cyberthreat and data protection, application discovery, secure application access, application segmentation, application protection, reduced attack surface, and browser isolation; Zero Trust Firewall; Cloud Sandbox; and Zero Trust Browser.
What is Zscaler, Inc. market cap?
Zscaler, Inc. has a market capitalization of $22.94B, classifying it as a large-cap stock in the Technology sector.
What sector and industry is ZS in?
Zscaler, Inc. operates in the Technology sector, specifically within the Software - Infrastructure industry. It trades on the NASDAQ under the ticker symbol ZS.
Is ZS stock overvalued or undervalued?
We do not have sufficient earnings data to produce a reliable fair value estimate for Zscaler, Inc. at this time. Stocks without stable earnings history are difficult to value using traditional models.
What is ZS stock forecast and analyst target price?
Based on 45 Wall Street analysts, the consensus price target for Zscaler, Inc. is $230.45, implying upside of 61.5% from the current price.
- Analyst High Target: $335.00
- Analyst Low Target: $140.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Zscaler, Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for Zscaler, Inc.:
- Revenue growth (current year est.): 24.1%
- EPS growth (current year est.): 22.8%
- Revenue growth (next year est.): 19.7%
- EPS growth (next year est.): 14.0%
What are Zscaler, Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $2.7B | Rising |
| Net Income | −$0.0B | Rising |
| Free Cash Flow | $0.7B | Rising |
| Gross Margin | 76.9% | Stable |
What is ZS's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Forward P/E (next 12 months est.): 31.1x
How volatile is ZS stock?
Zscaler, Inc. has a beta of 1.11, meaning it is somewhat more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Zscaler, Inc. have?
Zscaler, Inc.'s balance sheet shows:
- Total Cash: $3.51B
- Total Debt: $1.87B
- Net Cash Position: $1.65B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Zscaler, Inc.'s free cash flow?
Zscaler, Inc. generated $1.02B in trailing twelve-month free cash flow (from $1.11B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Zscaler, Inc. pay a dividend?
Zscaler, Inc. does not currently pay a regular dividend to shareholders. The company may be reinvesting all profits back into growth, or it may have suspended its dividend.
Is Zscaler, Inc. at risk of going bankrupt?
Zscaler, Inc.'s Altman Z-Score is 3.59, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Zscaler, Inc. have a durable competitive advantage?
Zscaler, Inc. scores 2.6/5 stars (Narrow moat · eroding) in our moat analysis:
- ROIC Stability: 2/5
- Gross Margin Trend: 3/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is ZS's return on equity (ROE)?
Zscaler, Inc.'s return on equity is -3.6%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy ZS stock?
ZS shares can be purchased through any brokerage account that provides access to the NASDAQ. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol ZS
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is ZS a value stock or speculative?
FairValueLabs classifies Zscaler, Inc. as Value-Speculation. It has some value characteristics but carries elevated risk factors that make it speculative. Extra due diligence is recommended.
Who is the CEO of Zscaler, Inc.?
The current CEO of Zscaler, Inc. is Mr. Jagtar Singh Chaudhry.
What is ZS's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $-0.43
- Forward EPS (next 12 months est.): $4.59
- Analyst consensus EPS (this year): $4.03
- Analyst consensus EPS (next year): $4.59
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
ZS analysis methodology: How we calculate fair value, Z-Scores, and moat ratings