“Is Zscaler an Undervalued Cybersecurity Stock to Buy Right Now in October? | ZS Stock Analysis”
Zscaler is a buy; valuation is attractive (slightly undervalued on P/E, fair on DCF) given strong organic fundamentals despite growth slowdown.
The Zscaler management team stated that this is a major driver of demand for the company's products and services. Management is optimistic about its prospects, expecting at least $8 billion in annual recurring revenue by 2031.
To put that in perspective, the company generated just over $3.3 billion in revenue over the past 12 months. Furthermore, management believes that in a positive scenario where agent-based AI continues to proliferate, they could generate up to $10 billion in annual recurring revenue by 2031.