Latest Ratios: P/E Ratio -778.4x · EV/EBITDA N/A · ROE -2.7%. (2015–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $34.0B | $44.1B | $26.8B | $23.2B | $21.8B | $32.0B | $16.8B | $10.4B | $2.3B | — | — |
| Enterprise Value | $33.4B | $43.5B | $26.6B | $23.2B | $21.9B | $32.7B | $17.6B | $10.3B | $2.1B | — | — |
| P/E Ratio → | -778.44 | — | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 12.71 | 16.49 | 12.38 | 14.38 | 20.03 | 47.54 | 38.94 | 34.38 | 11.86 | — | — |
| P/B Ratio | 18.04 | 24.51 | 21.06 | 32.06 | 38.11 | 60.51 | 34.64 | 33.75 | 9.39 | — | — |
| P/FCF | 46.77 | 60.67 | 45.86 | 69.68 | 94.44 | 222.63 | 610.46 | 373.69 | 1055.52 | — | — |
| P/OCF | 34.95 | 45.34 | 34.40 | 50.28 | 67.87 | 158.40 | 211.71 | 179.45 | 130.33 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 16.27 | 12.29 | 14.34 | 20.06 | 48.57 | 40.71 | 34.13 | 11.15 | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | 1338.14 | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | 59.86 | 45.55 | 69.52 | 94.58 | 227.43 | 638.21 | 370.87 | 992.07 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 76.9% | 76.9% | 77.9% | 77.6% | 77.7% | 77.6% | 77.5% | 80.2% | 80.1% | 78.1% | 74.9% |
| Operating Margin | -4.8% | -4.8% | -5.7% | -13.3% | -30.0% | -30.8% | -22.0% | -7.3% | -14.0% | -27.9% | -33.4% |
| Net Profit Margin | -1.6% | -1.6% | -2.7% | -12.5% | -35.8% | -38.9% | -26.7% | -9.5% | -17.7% | -28.2% | -34.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -2.7% | -2.7% | -5.8% | -31.2% | -70.8% | -51.7% | -29.0% | -10.4% | -23.2% | -60.9% | -42.5% |
| ROA | -0.7% | -0.7% | -1.4% | -6.3% | -15.3% | -12.8% | -9.4% | -5.4% | -10.7% | -21.1% | -19.6% |
| ROIC | -8.4% | -8.4% | -10.5% | -25.3% | -26.9% | -12.6% | -9.6% | -10.0% | -60.0% | — | — |
| ROCE | -4.6% | -4.6% | -6.8% | -11.4% | -20.2% | -14.1% | -10.8% | -7.3% | -16.2% | -50.8% | -36.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.00 | 1.00 | 0.97 | 1.67 | 1.82 | 1.82 | 1.87 | — | — | — | — |
| Debt / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.33 | -0.15 | -0.07 | 0.06 | 1.30 | 1.57 | -0.25 | -0.56 | -1.77 | -1.39 |
| Net Debt / EBITDA | — | — | — | — | — | — | — | -10.16 | — | — | — |
| Debt / FCF | — | -0.82 | -0.32 | -0.15 | 0.14 | 4.79 | 27.75 | -2.82 | -63.44 | — | — |
| Interest Coverage | -0.92 | -0.92 | -1.23 | -25.77 | -5.78 | -3.82 | -21.43 | — | — | — | — |
Net cash position: cash ($2.4B) exceeds total debt ($1.8B)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.01 | 2.01 | 1.09 | 1.88 | 1.99 | 2.57 | 3.73 | 1.89 | 2.12 | 1.19 | 1.63 |
| Quick Ratio | 2.01 | 2.01 | 1.09 | 1.88 | 1.99 | 2.57 | 3.73 | 1.89 | 2.12 | 1.19 | 1.63 |
| Cash Ratio | 1.47 | 1.47 | 0.77 | 1.37 | 1.53 | 2.09 | 3.23 | 1.39 | 1.63 | 0.73 | 1.19 |
| Asset Turnover | — | 0.42 | 0.46 | 0.45 | 0.39 | 0.30 | 0.24 | 0.50 | 0.42 | 0.69 | 0.52 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 135.48 | 124.01 | 131.52 | 133.74 | 139.42 | 124.91 | 112.50 | 118.25 | 113.38 | 111.28 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | — | — | — |
| FCF Yield | 2.1% | 1.6% | 2.2% | 1.4% | 1.1% | 0.4% | 0.2% | 0.3% | 0.1% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | — | — |
| Shares Outstanding | — | $154M | $150M | $145M | $141M | $136M | $129M | $124M | $64M | $104M | $28M |
Includes 30+ ratios · 11 years · Updated daily
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Quick answers to the most common questions about buying ZS stock.
Zscaler, Inc.'s current P/E ratio is -778.4x. This places it at the 50th percentile of its historical range.
Zscaler, Inc.'s return on equity (ROE) is -2.7%. The historical average is -31.7%.
Based on historical data, Zscaler, Inc. is trading at a P/E of -778.4x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Zscaler, Inc. has 76.9% gross margin and -4.8% operating margin.
Key Metrics
Top Statement Risk
Stock-Based Compensation Dilution
Metrics are mathematically derived from official filings.
Premium Valuation Amid Growth Deceleration
According to recent market data, Zscaler trades at a forward P/E of 32.11 and a P/S of 8.00, suggesting that investors are pricing in sustained high-growth expectations despite the observed deceleration in top-line expansion compared to historical performance levels seen in earlier fiscal periods.
The current valuation appears to rely heavily on the assumption that the company will successfully transition from a growth-at-all-costs model to sustained GAAP profitability. Given the deceleration in revenue growth, the current multiples may be vulnerable to contraction if the company fails to demonstrate significant operating leverage in upcoming quarters.
Negative Returns on Invested Capital
Based on reported financial figures, Zscaler's ROIC has remained consistently negative, hovering around -0.7% to -2.5% over the last ten quarters, which indicates that the company is currently destroying shareholder value on an invested capital basis as it prioritizes aggressive market share capture over immediate returns.
The persistent negative ROIC suggests that the capital deployed into global infrastructure and sales expansion has yet to generate returns exceeding the cost of capital. Investors should monitor whether the company can pivot toward positive capital efficiency as the business matures and the need for aggressive customer acquisition spending moderates.
Working Capital Volatility and Turnover
As reported in quarterly filings, Zscaler's asset turnover remains low at approximately 0.12, reflecting the capital-intensive nature of its global cloud infrastructure and the significant investment required to maintain a competitive edge in the highly fragmented and evolving cloud security services market.
The low asset turnover ratio highlights the structural challenge of scaling a proprietary cloud-native proxy architecture. While the company maintains a consistent gross margin, the heavy reliance on fixed assets suggests that operational efficiency gains will likely be slow to materialize without a significant increase in revenue per unit of infrastructure.
Manageable Debt Amid Capital Intensity
Based on recent balance sheet data, Zscaler maintains a debt-to-equity ratio of 0.79, which, while elevated compared to historical lows, appears manageable given the company's liquidity position and its ability to generate positive operating cash flow despite ongoing GAAP net losses in recent reporting periods.
The increase in debt levels suggests a strategic shift toward utilizing leverage to fund infrastructure expansion and potential inorganic growth. While the current interest coverage remains volatile, the company's ability to maintain a healthy current ratio of 1.86 provides a necessary buffer against short-term liquidity constraints.
Misapplication of GAAP Net Margin
Analysis of the company's financial statements suggests that the GAAP net margin is a misleading metric for Zscaler, as it fails to account for the massive non-cash impact of stock-based compensation, which consistently obscures the underlying cash-generative potential of the core subscription-based business model.
Investors should prioritize Free Cash Flow (FCF) margins over GAAP net margins to better understand the company's true earning power. Relying on GAAP profitability metrics in this context ignores the reality that equity-based compensation is a structural component of the company's compensation strategy, which effectively dilutes shareholders while masking operational performance.