Key Stats for Zscaler Stock
- Current Price: $255.15
- Target Price (Mid): ~$405
- Street Target: ~$235
- Potential Total Return: ~59%
- Annualized IRR: ~10% / year
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free) >>>
What Happened?
Zscaler (ZS) closed at $255.15 on October 23, up 7.31% on the day and 23% across five straight gains from $207.38 on October 16. Peers moved with it that Friday: Palo Alto Networks (PANW) rose 7.22%, CrowdStrike (CRWD) 8.25% and Cloudflare (NET) 7.29%, as an Evercore ISI survey of security resellers pointed to firmer budgets and the PHP patching scramble continued. The run has lifted Zscaler above Wall Street’s mean target, which leaves a narrower question: what is left for a buyer at $255?
Chaudhry’s Warning Was About Speed
The biggest gain came on October 21, when Zscaler rose 7.84% as security stocks rallied on critical flaws in PHP, the language behind roughly 70% of websites, which researchers found with AI’s help, according to The New Stack. That beat Okta (OKTA) at 7.54%, Cloudflare at 5.32% and CrowdStrike at 5.26%.
At its October 6 Investor Day, CEO Jay Chaudhry framed the risk as one of speed: frontier models find flaws, and “the gap between discovery to exploitation, which used to be months is now becoming minutes or seconds.” He said Zscaler has run more than 400 assessments with large Global 2000 customers since the preview program for Mythos, Anthropic’s frontier model. One energy customer had about 6,614 internet-facing assets, 1,049 software vulnerabilities and 40 VPN appliances.
Chief Product Officer Adam Geller summed up the answer: “If you are reachable, you’re breachable.” Zscaler hides applications behind its exchange, and its Autonomous AppShield adds virtual patches before customers have a chance to patch. Geller said the most common request after those assessments is what to do next, and Zscaler points customers to its private access product, ZPA. Chaudhry discussed the PHP flaws on Fox Business after the disclosure.
The pitch has a clear boundary. Chaudhry said Zscaler hides applications that require authentication. Public websites have to stay reachable, so not every PHP fix becomes new Zscaler business.
TIKR tracks 46 analysts on Zscaler. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on Zscaler, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Zscaler’s Analyst Ratings
The Valuation Multiple Rose About 80% Since April
The Street’s mean target is $235.19, about 8% below the close, with a median of $247 and a high of $298. Ratings remain positive at 29 Buys, 7 Outperforms and 11 Holds.
Since April 30, Zscaler’s enterprise value has more than doubled, from $19.37 billion to $40.00 billion. Next-12-month EBITDA estimates, which roll forward with time, rose about 14% over the same span. That lifted the forward EV/EBITDA multiple from about 20 times to about 36 times. Palo Alto trades at about 64 times and CrowdStrike at about 125 times, so Zscaler is not the priciest of the three.
The business is slowing, though. Consensus sees fiscal 2027 revenue up about 17%, inside management’s 16.6% to 17.5% guidance, after 25% growth in fiscal 2026.
TIKR Advanced Model Analysis
- Current Price: $255.15
- Target Price (Mid): ~$405
- Potential Total Return: ~59%
- Annualized IRR: ~10% / year
Over its 2026 to 2036 forecast, the mid case assumes revenue grows around 13% a year, net income margins of around 23% and an earnings multiple that expands about 3% a year. On those inputs it reaches around $405 by July 31, 2031, or about 10% a year. TIKR’s October 20 analysis showed about 14% a year from $212.53, so the rally has already collected part of the model’s return. The mid case fits because its growth runs below the roughly 17% a year analysts expect through fiscal 2029. The risk is another reset like the 64.89% drawdown to the April 10 low.
Conclusion
The fiscal first-quarter report, expected in late November but not yet scheduled, will show whether those assessments are turning into orders. Revenue guidance is $935 million to $939 million, and consensus already sits near the top at about $938 million. A raised full-year outlook would support a 36-times multiple. A held outlook leaves the stock leaning on a multiple that rose about 80% since April.
So what is Zscaler stock actually worth?
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what Zscaler could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use.
Analyze Zscaler on TIKR Free →
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
