TGM's two-stage DCF values Zscaler, Inc. (ZS) between $90.71 and $160.27 depending on assumptions, with a base case of $121.41. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth (capped at 18%)), fading to 2.5% long-run; the discount rate (8.7%) reflects its beta.
What would today's price require?
$161.94 is justified only if free cash flow grows about +25.2% a year (fading to 2.5% long-run) at a 8.7% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 15.0%/yr | 9.7% | $90.71 |
| Base case | 18.0%/yr | 8.7% | $121.41 |
| Optimistic | 20.0%/yr | 7.7% | $160.27 |
| Third-party model estimate (FMP) | independent reference · retrieved Sep 8, 2026 · assumptions not provided | $94.44 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$161.94
Market-Implied Growth
+25.2%/yr
vs +42.8% 5Y actual
Model Scenario Range
$90.71 – $160.27
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for ZS (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $655.8M · 0.16B shares · net debt $768.0M
Estimated Fair Value
$121.41
-25.0% vs $161.94
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 18.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $161.94; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.7% | $153 | $168 | $186 | $210 | $240 |
| 7.7% | $126 | $136 | $148 | $162 | $179 |
| 8.7% | $106 | $113 | $121 | $131 | $142 |
| 9.7% | $91.58 | $96.73 | $103 | $109 | $117 |
| 10.7% | $80.08 | $84.01 | $88.40 | $93.36 | $99.00 |
