2 models fit Zscaler Inc. Common Stock and they agree: 2 of 2 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Large premium(i)Bronze49
Valued as a growth company: Discounted cash flow, P/E comparison, and EV/EBITDA comparison.
ACCE opinionZscaler Inc. Common Stock (ZS)
Fair value (2 models)
$127
ACCE price target
$189
Rating
Overvalued
Horizon
12 months
Fair value published on 24 Oct 2026, 16:06 CEST; previously $113 since 9 Oct 2026, 00:00 CEST.
ACCE price target published on 18 Oct 2026, 01:52 CEST; previously $198 since 2 Oct 2026, 00:00 CEST.
Rating published on 24 Oct 2026, 16:06 CEST.
Price used: $255 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
100.6% above
-50.1% to fair value
ACCE score
46
out of 100
Analysts
78% buy
46 covering
P/E
0.0x
forward 45.4x
1-year return
-20.0%
Dividend yield
0.00%
Zscaler Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Zscaler sells cloud-delivered zero trust security, routing employee and workload traffic through its global proxy network (Zero Trust Exchange) instead of a corporate VPN and firewall perimeter. The structural case rests on that architecture: a 76.9% gross margin and 24.9% revenue growth show a subscription model that scales without much incremental cost, and customers that consolidate onto the platform tend to stay. The thesis turns on margin conversion, since operating margin is still slightly negative at -1.0% and ROE is -2.9%, so the company has to prove it can turn growth into profit. At a forward P/E of 43.9 the market is already paying for that expansion, which makes the score of 46/100 a reasonable signal to examine the operating leverage and retention data before sizing any position.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Profitability collapse despite growth
Revenue up 24.9% YoY but operating margin negative at -1.0% and net margin -1.9%. Earnings flat YoY (0.0%) signals growth is not translating to bottom-line gains.
high
Valuation stretched vs earnings power
Forward P/E 43.9, EV/EBITDA 186.8, P/S 11.4 on a company with negative operating and net margins.
moderate
Insider selling with no offsetting buys
Last 10 disclosed transactions: $2.58M in sales, $0 in buys. Insiders own 34.7% but are net sellers, a mild negative signal.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-07-31 · prices to Oct 23, 2026
Why it could do well
Five-year revenue growth of 37.9% annually demonstrates Zscaler's ability to scale in a large cybersecurity market.
Strong free cash flow of 852M dollars funds growth without reliance on external capital despite negative net income.
Latest earnings beat expectations by 133.3%, suggesting management is executing better than consensus anticipated.
Why it could disappoint
Forward P/E of 43.9x leaves minimal margin for error when the company remains unprofitable at negative 1.9% net margin.
Year-over-year growth has slowed to 24.9% from historical 37.9% average, signaling deceleration in a maturing market.
Analyst price target of 233.38 dollars is essentially flat to current price, implying limited upside from current levels.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 24, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
Walk me through this stock
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Valuation
INVESTOR
Where ZS's valuation models land
Price
$255.15
Model fair value
$127
Model range
$127 to $128
Fair value $127
Price $255
The price is above the whole model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
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+Conviction breakdown and growth / value / quality / momentum scores
Zscaler reported earnings on May 26, 2026. Revenue grew 25.9% YoY, forward P/E sits at 39.8, and the ACCE score holds at 42/100. Here's what the numbers say.