Zscaler, Inc. (ZS) Fair Value 2026

ZS · Software - Infrastructure ·

By CirclFi Research Team · Data from SEC EDGAR, FRED & GDELT

Quality Score

8.2 /10

32 fundamental signals · 5 models active

Value Trap Risk

SAFE (6/100)

Quick Summary — As of 2026-08-27, Zscaler, Inc. (ZS) trades at $187.30, versus a $99.76 median fair value across its 5 active models — 46.7% below the current price. QOC: 8.2/10. Value Trap Risk: 6/100 (SAFE). 5/13 models active. Within that set, the Bayesian DCF component alone returns $132.71.

Key Facts

Ticker
ZS
Price
$187.30
Quality Score
8.2/10
Value Trap Risk
6/100
Models Active
5/13
Last Updated
Strength: Quality Score of 8.2/10 indicates strong fundamentals
Risk: Majority of models suggest overvaluation

Is Zscaler, Inc. (ZS) Undervalued or Overvalued in 2026?

According to CirclFi’s 5-model valuation engine, Zscaler, Inc. (ZS) appears overvalued as of : the median of 5 independent fair value estimates is $99.76, 46.7% below the current price of $187.30. Estimates range from $61.01 to $132.71. ZS scores 8.2/10 on fundamental quality and 6/100 on value-trap risk.

For context, the median US equity CirclFi rates trades at an implied -23.7% versus its own 13-model consensus, across 3,801 rated companies as of 2026-08-27. ZS’s -46.7% gap is wider than that market norm, and the Software - Infrastructure sector median is -22.1%. Full market index →

This verdict compares price to intrinsic value only — it is not a buy or sell rating. For the decision case (bull vs bear arguments, risk factors, peers), read Should You Buy Zscaler, Inc. Stock in 2026? →

What Fair Value Does Each Model Give ZS?

5 Intrinsic Value Models vs. Current Price ($187.30)

Core Models (Unlocked)
Model Fair Value Upside
Intrinsic · High Conviction
 $132.71 -29.1%
Ensemble · Medium Conviction
 $99.76 -46.7%
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What Is ZS's Fair Value Range?

Spread across 5 independent models · $61.01 to $132.71

CirclFi's 5 active models place Zscaler, Inc. (ZS) between $61.01 and $132.71 per share, a spread of 72% of the median. The median of that range — $99.76 — is the fair value CirclFi publishes for ZS, against a current price of $187.30.

Low · RCMH-DCFHigh · Bayesian DCF
$61.01median $99.76$132.71
Where the range comes from
Most bearish modelRCMH-DCF$61.01
Most bullish modelBayesian DCF$132.71
Model agreement0 bullish · 5 bearishmoderate

A band of this width is typical. The methods agree on direction but weight growth, reinvestment and risk differently, so treat the median as a centre of gravity rather than a precise target.

Every figure above is one model's standalone output on ZS, not a CirclFi price target. How each model works →

What Is Zscaler, Inc. (ZS) Worth in 2026?

According to the CirclFi Deep Alpha Valuation Engine, Zscaler, Inc.'s intrinsic value is estimated at $99.76, suggesting the stock is overvalued at its current price of $187.30. With 5 out of 5 models flagging downside (-46.7% vs price), the market may be pricing in unsustainable growth. Model dispersion is worth noting: Bayesian DCF targets $132.71 (-29.1%), versus RCMH-DCF at $61.01 (-67.4%). This +38.3% range highlights the importance of multi-model analysis rather than relying on any single methodology.

What Do the Models Say About ZS?

5 of 13 models are currently active for ZS. All 5 active models suggest the stock trades above fair value. Taken together, their median fair value for ZS is $99.76 — the figure CirclFi publishes as this stock's fair value. One component of that median, the Bayesian DCF, returns $132.71 on its own, implying -29.1% downside from the current price. See which stocks rank higher →

How Does ZS Rank in Software - Infrastructure?

Among 186 Software - Infrastructure stocks, ZS ranks #38 by Quality of Company score. CirclFi's QOC score of 8.2/10 evaluates 32 fundamental signals. A score of 8.2 places ZS in the top tier.

See all Most Undervalued Software - Infrastructure Stocks →

Within the Software - Infrastructure space, Zscaler, Inc. competes in an environment where net revenue retention (NRR) often separates market leaders from laggards. Understanding these industry-specific dynamics is essential context for interpreting our model outputs.

Is ZS a Value Trap?

CirclFi's Value Trap algorithm assigns ZS a score of 6/100 (SAFE). This indicates minimal risk. Fundamentals are healthy. The score cross-references apparent undervaluation against fundamental deterioration signals. Browse lowest value-trap stocks →

Multi-Model Methodology

5 of 13 models are active for Zscaler, Inc.. Limited activation may indicate insufficient history. Each model applies a fundamentally different valuation philosophy. See the complete methodology →

According to the CirclFi Quality of Company (QOC) framework, which evaluates 32 signals including margin stability, revenue growth trajectory, leverage, and free cash flow generation, Zscaler, Inc. is rated at 8.2/10. This strong-tier score demonstrates strong fundamentals across the majority of our quality signals.

The gap between the most bullish and bearish model spans +38.3% — demonstrating why single-model analysis is dangerous. Browse all stocks with 13-model coverage →

Data Sources & Confidence

Every ZS valuation is built from SEC EDGAR XBRL filings — 700+ standardized financial tags. Macroeconomic context from FRED calibrates discount rates, while GDELT news sentiment feeds into our Sentiment SOTP model. All pipelines run daily. Read the complete data methodology →

Across ZS's 5 active models, average confidence is 41%. Lower confidence may reflect limited history or high volatility.

CirclFi's output is a research starting point, not a buy/sell signal. All data updates daily. Read the full methodology →

This analysis is produced by the CirclFi Valuation Engine using quantitative models applied to SEC EDGAR filings, public market feeds, and FRED macroeconomic indicators. It is not financial advice.

Read the full investment analysis: Should You Buy Zscaler, Inc. Stock in 2026? →

Bull case, bear case, risk factors & peer comparison — updated daily

Which Similar Software - Infrastructure Stocks Should You Also Analyze?

11 related Software - Infrastructure stocks with 13-model coverage

BBBlackBerry LimitedQOC 8.3CPAYCorpay, Inc.QOC 8.2EEFTEuronet Worldwide, Inc.QOC 8.3PGYPagaya Technologies Ltd.QOC 8.2RELYRemitly Global, Inc.QOC 8.3CRWDCrowdStrike Holdings, Inc.QOC 8.2YYAIAiRWA Inc.QOC 6.2EXODExodus Movement, Inc.QOC 5.2RDWRRadware Ltd.QOC 2.9FTNTFortinet, Inc.QOC 9.7QLYSQualys, Inc.QOC 9.7

Read investment analysis: BB · CPAY · EEFT · PGY · RELY · CRWD · YYAI · EXOD · RDWR · FTNT · QLYS

Which Other Stocks Have a Similar Quality Score to ZS?

7 companies across all industries closest to ZS’s Quality of Company score of 8.2/10.

NBBKNB Bancorp, Inc.QOC 8.2PJTPJT Partners Inc.QOC 8.2VRRMVerra Mobility CorporationQOC 8.2MITTTPG Mortgage Investment Trust, Inc.QOC 8.2CHEChemed CorporationQOC 8.2ICFIICF International, Inc.QOC 8.2NVDANVIDIA CorporationQOC 10.0

Read investment analysis: NBBK · PJT · VRRM · MITT · CHE · ICFI · NVDA

Where Does ZS Sit in CirclFi's Software - Infrastructure Rankings?

ZS is ranked against every other Software - Infrastructure stock CirclFi covers in each of these screens.

See all Software - Infrastructure stocks ranked →

What Else Do Investors Ask About Zscaler, Inc.’s Valuation?

What is Zscaler, Inc.'s intrinsic value in 2026?

CirclFi puts Zscaler, Inc. (ZS)'s intrinsic value at $99.76 — the median of 5 independent model estimates as of 2026-08-27, ranging from $61.01 to $132.71. One component of that median, the Bayesian DCF, runs 10,000 Monte Carlo simulations with jump-diffusion and returns $132.71 on its own. The Quality of Company score is 8.2/10 across 32 fundamental signals. All models use SEC EDGAR filings updated daily. See our methodology page for how each model works.

Is ZS overvalued or undervalued right now?

At $187.30, 0 of 5 active models suggest ZS may be undervalued, while 5 indicate potential overvaluation. The median of all 5 fair value estimates is $99.76, 46.7% below the current price of $187.30 — a consensus view that ZS is overvalued. The assessment depends on which methodology best fits Zscaler, Inc.'s business model in Software - Infrastructure.

What does a Quality of Company score of 8.2 mean for ZS?

Zscaler, Inc.'s QOC of 8.2/10 reflects 32 fundamental signals: profitability margins, revenue growth consistency, balance sheet leverage, free cash flow generation, and capital allocation efficiency. Scores above 7 indicate strong fundamentals and disciplined management.

How many valuation models does CirclFi run on ZS?

CirclFi analyzes ZS with 13 institutional-grade models daily: Bayesian DCF (Monte Carlo + jump-diffusion), EPV (Greenwald zero-growth), EROIC Spread (McKinsey reinvestment), First Chicago (3-scenario), Markov DDM (regime-switching), ML-RIV (machine learning residual income), Dynamic NAV (asset-based), PWERM (option-theoretic), Regime Cross-Sectional (relative), Sentiment SOTP (hybrid), CUCE Ensemble (meta-model), FTNN Topology (neural network), and RCMH-DCF (conditional regime). Currently 5 of 13 are active for this stock. Read the full methodology →

Which valuation models are most bullish and most bearish on ZS?

Of the 5 models currently active on ZS, Bayesian DCF is the most bullish at $132.71 per share, and RCMH-DCF is the most bearish at $61.01. CirclFi's published fair value for ZS is the median of that range, $99.76, not either extreme. The gap between the two ends equals 72% of the median — a normal spread for a company of this profile. Browse stocks by value-trap risk →

Is ZS a value trap in 2026?

Zscaler, Inc.'s Value Trap score is 6/100 (SAFE). This low score indicates the current valuation is not artificially depressed by fundamental deterioration, suggesting genuine opportunity rather than a trap.

Cite this analysis — “According to CirclFi’s 5-model valuation engine, Zscaler, Inc. (ZS) has a median fair value of $99.76 — 46.7% below the current price of $187.30 — as of 2026-08-27.” Source: circlfi.com/stock/ZS/ · Methodology
Primary sources for this ZS valuation
  • Financial statements: Zscaler, Inc. 10-K and 10-Q filings on SEC EDGAR (CIK 0001713683) — 700+ standardized XBRL tags, published by the U.S. Securities and Exchange Commission.
  • Discount-rate inputs: FRED, Federal Reserve Bank of St. Louis — risk-free rates, VIX, yield curve, inflation.
  • News sentiment: The GDELT Project — global media tone, input to the Sentiment SOTP model.
  • Model definitions: CirclFi methodology — the published specification for all 13 models, including the academic sources each one implements.

Market data for ZS as of ; valuations recomputed .

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