* Note: Prices are in Million (M) USD.
Description:
Zscaler, Inc. is a global cloud security company. The company is headquartered in San Jose, California.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,423 M
Debt : $0 M
EBITDA : $-73 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: TECHNOLOGY
Industry: SERVICES-COMPUTER PROGRAMMING SERVICES
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 82.55
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $225 M
Average Revenue: $673 M
Revenue Converted To Free Cash FLow(%): 33%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 120.35%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-07-31): $2,168 M
Revenue 4 Years Ago (2020-07-31): $431 M
Last 5 Years Average Revenue Growth: 81%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-07-31): $150 M
Share Count 5 Years Ago (2020-07-31): $129 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $3.60
Trailing 12-Month Earnings Per Share (EPS): $3.19
Average Earnings Per Share (EPS): $3.40
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: -33%
Since Average ROE is negative, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $280
52-Week Low: $153
Threshold Price (15% Above 52-Week Low): $176
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $45,111 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 0.20% exposure of Total Portfolio.
Value-Trade has assigned 17 points to above Zscaler Inc (ZS) stock.
Value-Trades has assined P/E value 20. Since an average (Current Year EPS + Next Year EPS) earning per share is $3.395.
The fair value of Zscaler Inc (ZS) stock should be (20 x $3.395) = $67.9
