Zscaler ZS
Zscaler is a cybersecurity company offering a cloud-based security platform (SASE) to protect user access to applications and data, regardless of location. Zscaler shows very strong revenue growth (24.90%) and an excellent gross margin (76.87%), but its valuation is demanding (forward P/E 34.46, EV/EBITDA 681.22) and its return on equity is negative (ROE -2.87%), reflecting a high-investment phase. Rising interest rates pressure its long-duration valuation.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Zscaler is a cybersecurity company offering a cloud-based security platform (SASE) to protect user access to applications and data, regardless of location. Zscaler shows very strong revenue growth (24.90%) and an excellent gross margin (76.87%), but its valuation is demanding (forward P/E 34.46, EV/EBITDA 681.22) and its return on equity is negative (ROE -2.87%), reflecting a high-investment phase. Rising interest rates pressure its long-duration valuation.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.9 |
| Quality / Moat | 4.7 |
| Valuation | 3.1 |
| Growth | 8.7 |
| Dividend | 1.5 |
| Momentum | 0.7 |
| Risk & Context | 6.1 |
OVERALL SCORE: 5.1/10
Context and risks
The rise in 10-year Treasury yields (5.17%) and renewed concerns about AI security are pressuring high-duration tech stocks. Zscaler, with a forward P/E of 34.46 and an EV/EBITDA of 681.22, is particularly sensitive to this environment, although its position as a cloud security company gives it some resilience.
News considered in the analysis
- Zscaler (ZS) Names Ross Tackett Chief Revenue Officer — Nombramiento de un nuevo CRO, un cambio ejecutivo de nivel medio que puede impulsar la ejecución comercial, pero sin impacto inmediato cuantificable en los resultados.
- Why Zscaler (ZS) Stock Is Trading Lower Today — La caída de la acción refleja probablemente el sentimiento negativo del sector tecnológico por las preocupaciones sobre IA y tipos, más que un problema específico de la empresa.
- US Stock Market Today S&P 500 Futures Rise As Jobs Data Jitters Build — Titular macro general de mercado, sin información específica sobre Zscaler.
- 3 Cloud And AI Stocks Retail Investors Are Watching After Microsoft Copilot Expansion — Listículo genérico sobre acciones de nube e IA, sin información nueva sobre Zscaler.
- Palo Alto Networks (PANW): Can Platformization Keep Driving Growth? — Noticia sobre un competidor, sin impacto directo en los fundamentales de Zscaler.
Verdict: Hold; the strength of growth and the cloud security moat justify a premium, but the current valuation and the high-rate environment limit near-term upside potential.
Main risk: The main risk is the extreme valuation (EV/EBITDA of 681.22) in a rising-rate environment, which could compress the multiple if growth decelerates or sentiment toward high-duration tech stocks worsens.
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