u/stefanliemawan ·
Reddit — r/ValueInvesting
· June 06, 2026 at 14:23
· ⬆ 16 pts
· 💬 15 comments
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AI Summary
Summary
The post argues that Zscaler (ZS) is undervalued relative to cybersecurity peers like PANW, CRWD, and NET, trading at ~5.2x forward EV/Sales despite 16-17% growth.
The author highlights a 30% drop after sales leadership departures and guidance deceleration, seeing this as a buying opportunity vs. peers with similar/higher multiples.
Quality assessment: Fairly researched comparison-based DD, but lacks deeper cash flow or margin analysis; it’s reasonable speculation with solid peer context.
Score16
Comments15
Upvote %91%
▶ Full Post Text
This year SaaSpocalypse and the most recent sales leadership departures in May spooked investors as management guided for 16%-17% growth for FY2027, a deceleration from FY26 \~24% growth.
That resulted in a 30% drop in a single day, and the share price has halved in the past year.
But I think the valuation is interesting, particularly if we compare to cyber peers:
* PANW growing \~14–15% (organically), trades at \~16x forward EV/Sales
* CRWD growing \~24–32% in ARR, trades at \~26x forward EV/Sales
* NET growing \~30–34%, trades at \~29x forward EV/Sales
* OKTA growing \~12%, guided for 9%-10%, trades at \~5.6x forward EV/Sales
* ZS growing 16–17%, trades at \~5.2x forward EV/Sales
PANW is growing at roughly the same rate as ZS's guided deceleration and commands 3x the multiple. Okta is growing at less than ZS, and yet they trade at a similar multiple.
This does seem strange to me.
For Zscaler, I think this multiple for a 16-17% growth is attractive.
Thoughts?
My full analysis: [https://economiyaki.substack.com/p/zscaler](https://economiyaki.substack.com/p/zscaler)