Zscaler, Inc. operates as a cloud security company worldwide. The company develops a software-as-a-service based security platform that secures access for users and devices to applications and services. It serves airline and transportation, conglomerate, consumer good and retail, financial service, healthcare, manufacturing, media and communication, public sector and education, technology, and telecommunications service industries. The company was formerly known as SafeChannel, Inc., and changed its name to Zscaler, Inc. in August 2008. Zscaler, Inc. was founded in 2007 and is based in San Jose, California.
ZS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Zscaler Inc. To summarize, we found that Zscaler Inc ranked in the 78th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for ZS, they are:
The business' balance sheet reveals debt to be 5% of the company's capital (with equity being the remaining amount). Approximately only 14.5% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
As a business, Zscaler Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Technology), this tax rate is higher than only 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ZS, try RCM, ARW, MTSI, PFPT, and AVGO.
Zscaler ([[ZS]] +2.0%) has expanded strategic partnership with VMware ([[VMW]] +2.7%) to help large organizations simplify the adoption of a complete Secure Access Service Edge ((SASE)) architecture and more effectively implement Zero Trust security. Jay Chaudhry, Chairman and CEO of Zscaler said, “By integrating our purpose-built cloud security with VMware’s...
Zscaler's (ZS) recent earnings report offered plenty of positives and largely affirmed my positive view of its long-term positioning as a secular beneficiary of the shift toward secure and efficient access for remote work. That said, there are competitive risks on the horizon, particularly from Palo Alto Networks' (PANW) Prisma...
Aaron Butler on Seeking Alpha | September 19, 2020
Summary List Placement Prior to the coronavirus pandemic, only about 120 of 48,000 Los Angeles city government employees were working remote. It was a struggle to even get to that point, according to chief information officer Ted Ross, and required, among other things, negotiations with labor unions and establishing entirely new policies. So it was a definite shock to the system when LA, like other cities, announced that it would pivot entirely to telework to help prevent the spread of the virus. But now, after several months, Ross is working to make sure the opportunity for remote work continues well after the pandemic. "We're looking at longterm telework solutions: We've already started to build policies, and plans, and methods, and mechanisms for supervisors," he told Business Inside...