ZS · Discounted Cash Flow Valuation
Zscaler DCF Valuation: Intrinsic Value Calculator
Zscaler, Inc. (ZS) DCF model with live financials. See the pre-loaded intrinsic value estimate below, then adjust growth and discount rate assumptions in the full calculator.
DCF Snapshot
Assumptions
These are conservative starting assumptions. Adjust them in the full calculator to test your own thesis.
What Drives Zscaler's DCF
Zscaler is a cloud-native Zero Trust security platform, replacing legacy on-premise firewalls and VPNs with its Zero Trust Exchange that secures users, devices, and applications across any network. Revenue grew 25% to over $2.4B annually at gross margins above 76%, with GAAP operating margins near breakeven. The Zero Trust architecture trend is a secular tailwind — enterprises replacing perimeter-based security with identity-and-context-aware access controls. Key assumptions: Zero Trust adoption accelerates as remote and hybrid work becomes permanent, Zscaler's Data Protection and AI Security modules expand ARPU beyond core internet access, and federal/government verticals (FedRAMP authorized) provide a durable revenue stream alongside enterprise.