---
title: Zscaler (ZS) — software card
canonical: https://sweetvaluelab.com/tools/software/zs
ticker: ZS
tier: Large
as_of: 2026-10-16
---
# Zscaler (ZS) — software card

Zscaler, Large, grows revenue 25.4% on a 76.8% gross margin and a 25.4% free-cash-flow margin (0.9% after stock-based compensation), and trades at 9.4× trailing revenue. Prices as of Oct 16, 2026; trailing-twelve-month figures through Aug 31, 2026.

## The card

| Figure | ZS | Large average (14) |
| --- | ---: | ---: |
| Price | $207.38 |  |
| Revenue (TTM) | $3.4B |  |
| Revenue growth | 25.4% | 26.4% |
| Revenue growth, prior year | 23.3% |  |
| Gross margin | 76.8% | 75.2% |
| Operating margin | -4.0% |  |
| Free cash flow (TTM) | $852.4M |  |
| FCF margin | 25.4% | 33.4% |
| FCF margin after SBC | 0.9% |  |
| Stock-based compensation (TTM) | $821.9M |  |
| SBC / revenue | 24.5% | 13.6% |
| Rule of 40 | 5084 | 5979 |
| Diluted shares, YoY | 2.4% |
| Buybacks (TTM) | $0 |  |
| Market value | $33.2B |  |
| Net cash | $1.6B |  |
| Enterprise value | $31.6B |  |
| EV / revenue | 9.4× | 19.4× |
| EV / gross profit | 12.3× |  |
| EV / FCF | 37.1× |  |
| P/E | — |  |

## Lights

- Stock-based compensation is 25% of revenue

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Source: https://sweetvaluelab.com/tools/software/zs (SweetValueLab, free, no account). Quarterly statements from Financial Modeling Prep, closes from the daily price cache; the engine's rules are on the board page. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.