Is Zscaler, Inc. (ZS) Undervalued?
Based on the current stock price of $230.52 and a P/E ratio of 51.40,Zscaler, Inc. has a PEG ratio of 3.10.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 3.10, ZS appears to be potentially overvalued relative to its growth rate of 16.58%.
Based on a PEG ratio of 3.10 (adjusted for dividends).
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How we analyzed ZS
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 51.40and dividing it by the annual growth rate of 16.58%.
PEG = 51.40 (P/E) ÷ 16.58 (Growth) = 3.10
Frequently Asked Questions about ZS
What is the current PEG Ratio for Zscaler, Inc. (ZS)?+
The current PEG Ratio for Zscaler, Inc. is 3.10. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is ZS stock undervalued right now?+
Based on the PEG ratio of 3.10, Zscaler, Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for ZS?+
The PEGY ratio for Zscaler, Inc. is 3.10. This metric accounts for dividend yield (0.00%), providing a more complete valuation picture.