Market Pulse59Neutral

Zscaler, Inc.Opportunity Rank #107(ZS) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$152.79

Last updated: May 08, 2026

Price vs Intrinsic Value

$152.79
Price
$231.05
Intrinsic Value
Undervalued by 51%MOS: $184.84

Fundamental Score

65/100
Bullish

Weighted across 6 signals

Narrative Score

59/100
Improving

No change vs previous

Trend Score

36/100
Weak

As of 2026-05-08

The intrinsic value of Zscaler, Inc. (ZS) is estimated at $231.05 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $152.79, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes an 11.29% long-term growth rate and a 9.00% discount rate (calculated: 8.29%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Zscaler, Inc. (ZS) is estimated at $231.05 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $152.79, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes an 11.29% long-term growth rate and a 9.00% discount rate (calculated: 8.29%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$231.05
51.22% upside
20% margin of safety: $184.84
Years: 10Growth Rate: 11.29%
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Capital Efficiency

Average Quarterly ROIC
-1.92%
Cost of Capital (estimated)10%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

65/100
BullishWeighted across 6 signals
DCF Discount
51.2% discount to price
100
FCF Yield
5.2% trailing FCF yield
81
ROIC vs WACC
ROIC -1.9% vs WACC 10.0% (-0.2x)
0
Net Debt / FCF
Net cash position
100
Buybacks
Share count growing
30
FCF CAGR (5Y)
57.8% 5Y FCF CAGR
100
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Buybacks.

Narrative Details

59/100
Improving
Vs 6-Month Baseline:Average (58th pct)Weighted across 6 recent drivers
Trend: StableConfidence: 91%Updated: 17h ago
Sources: 86 (57 News · 29 Analyst)
Drivers(last 30 days)
35 regulatory scrutiny+0.5
20 news sentiment+0.4
2 analyst downgrades-0.1
Upgrade headlines+0.0
Downgrade headlines+0.0
27 analyst reiterations0.0

Trend Details

36/100
WeakAs of 2026-05-08311 daily bars used
Distance from 52-Week High-54.8%
6M Relative Strength vs SPY-61.9%
3M Relative Strength vs SPY-15.9%
Price vs 21 EMA89 · +8.7%
Price vs 50 EMA63 · +2.7%
21 EMA vs 50 EMA13 · -5.5%
3M RS vs SPY7 · -15.9%
6M RS vs SPY0 · -61.9%
Distance from 52W High0 · -54.8%

Investment Coach

Updating... 1d ago
BUYConfidence: 57%
Thesis
Zscaler, Inc. is attractively valued with an estimated fair value 74% above the current price and demonstrates healthy free cash flow yield and constructive fundamentals. The company shows improving narrative trends and strong free cash flow growth, supporting a bullish outlook.
Key Risk
The company’s return on invested capital is significantly below its weighted average cost of capital, indicating potential value destruction.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 17.56%5 Year CAGR: 37.60%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015
$1,284$1,218$975$591$412$260$131$88$32$2-$6$3

How Intrinziq Estimates Fair Value

Intrinziq estimates Zscaler, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Zscaler, Inc.Technology

Zscaler, Inc. operates as a cloud security company worldwide. The company provides Zscaler Internet Access solution that provides users, servers, operational technology, Internet of Things device secure access to externally managed applications, including software-as-a-service (SaaS) applications and Internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds. It also offers Zscaler Digital Experience that measures end-to-end user experience across business applications, as well as provides an easy to understand digital experience score for each user, application, and location within an enterprise. In addition, the company provides workload segmentation solutions comprising Zscaler Cloud Security Posture Management that identifies and remediates application misconfigurations in SaaS, infrastructure as a service, and platform as a service to reduce risk and ensure compliance with industry and organizational benchmarks; and Zscaler Cloud Workload Segmentation, which is designed to secure application-to-application communications inside public clouds and data centers to stop lateral threat movement, as well as prevents application compromise and reduces the risk of data breaches. Its platform modules include Zscaler Central Authority, Zscaler Enforcement Node, and Zscaler Log Servers. It serves customers in airlines and transportation, conglomerates, consumer goods and retail, financial services, healthcare, manufacturing, media and communications, public sector and education, technology, and telecommunications services industries. The company was formerly known as SafeChannel, Inc., and changed its name to Zscaler, Inc. in August 2008. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California.