Positioning no disclosures inside 60 days, left as found
Options put/call open interest 1.57, read 2026-11-02
Ethical does not pass the values gate
Price203.88 USD
Fair value194.99
Ethical score10.0/100
Value readOvervaluedas of 5 Nov 2026
Our investment reviews on this name
2026-07-02Read Markup130.78+55.9% to today ✓First review on file: Markup
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Zscaler Inc. holds its Markup at $203.88. The statistical read favours the buyers, held for 72 days.
As held on the ledger · 2026-11-05
Phase
Markup
Quantitative state
The statistical read favours the buyers, held for 72 days
Price at the screen
$203.88
Valuation
N/A trailing · 42.30 forward price to earnings
Values screen
FAIL· score 10.0
Beta
0.94
The Workings
Five Screens, Shown in Full
Does not pass. Cash ratio 37.2%
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
27.98%
Below 33%
Interest-bearing debt is just 28.0% of its assets, well under the one-third ceiling: it does not run on borrowed money.
Pass
Interest-bearing cash
37.21%
Below 33%
Interest-bearing cash and securities are 37.2% of assets, above the one-third limit.
Fail
Receivables
15.45%
Below 49%
Money owed to the company is 15.5% of assets, under the 49% limit.
Pass
Revenue purity
4.33%
Below 5%
Only 4.3% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Zscaler's business is fine, but its cash and interest-bearing securities are about 37% of its assets, just over the ~33% line, so it does not pass on the financial screens.
Read as at 2026-11-05. It updates when the underlying figures move, and past reads are kept below.
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What the Numbers Say It Is Worth
The Fair Value Range
Our analysis reads Overvalued vs our fair value, as of 5 Nov 2026: it trades above our $194.99 fair value estimate, 24.90% revenue growth.
Fair value range in USD, drawn from the 2026-11-05 screen. The gold marker is the market price at the same screen. The price runs 4.6% above the base estimate.
Third-party analyst targets: 45 covering, consensus Buy. The average target sits +21% from the screen price.
Reading the gap · Our more conservative model reads it as fully-to-richly valued here, while the Street is more bullish: a quality-at-a-fair-price name rather than a deep-value one.
Where our models see it going: fair-value estimate $194.99, with a range of $148.28 to $224.24, dated to the 2026-11-05 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Cloud Gatekeeper Trades Past Its Worth
Picture every firm pushing its traffic through one cloud checkpoint to stay safe from threats. Zscaler built that checkpoint, yet it still posts a 2 percent loss margin and a negative 4 percent return on equity while charging a forward multiple of 32.6 times earnings.
We pass because the shares sit only 2 percent below our fair value and fail the ethical screen on a cash ratio of 37.2 percent. Revenue growth of 25 percent looks solid on paper, but it has not translated into profits or a disclosed moat, leaving the business exposed once competition or spending slows.
Analysts still cluster around a buy rating with targets near 188 dollars, which keeps sentiment frothy. The ethical shortfall and thin margin of safety outweigh any growth narrative for now. Analysis, not advice.
Another profit measure, before interest, tax and non-cash costs: EBITDA.
The risks · The main risks here are ordinary market swings and the chance our fair-value read proves too optimistic.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
ZS trades on NASDAQ. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-11-01Markup$237.83+14.7%Entry 16
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 14.7% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it A, carrying a low risk profile. Technically it is momentum reading overbought. Over the past year the shares are down 58%. Our forward projection puts the odds of a 10% gain over the next month near 27%. The street (45 analysts) rates it strong buy, with a mean price target of $223.
2026-10-25Markup$207.38+0.0%Entry 15
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it A, carrying a low risk profile. Technically it is momentum reading neutral. Over the past year the shares are down 58%. Our forward projection puts the odds of a 10% gain over the next month near 27%. The street (45 analysts) rates it strong buy, with a mean price target of $223.
2026-10-18Markup$207.38+4.0%Entry 14
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 4.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading overbought. Over the past year the shares are down 58%. Our forward projection puts the odds of a 10% gain over the next month near 27%. The street (45 analysts) rates it strong buy, with a mean price target of $223.
2026-10-02Markup$199.39+9.7%Entry 13
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 9.7% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading overbought. Over the past year the shares are down 58%. Our forward projection puts the odds of a 10% gain over the next month near 27%. The street (45 analysts) rates it strong buy, with a mean price target of $223. Since the last review it its composite score eased.
2026-09-03Markup$181.75+0.0%Entry 12
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading overbought. Over the past year the shares are down 58%. Our forward projection puts the odds of a 10% gain over the next month near 27%. The street (45 analysts) rates it strong buy, with a mean price target of $223. It reported earnings in this window, a natural checkpoint for the thesis.
2026-09-02Markup$181.75+0.0%Entry 11
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading overbought. Over the past year the shares are down 58%. Our forward projection puts the odds of a 10% gain over the next month near 27%. The street (45 analysts) rates it strong buy, with a mean price target of $223. It reported earnings in this window, a natural checkpoint for the thesis.
2026-09-01Markup$181.75+0.0%Entry 10
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading overbought. Over the past year the shares are down 58%. Our forward projection puts the odds of a 10% gain over the next month near 27%. The street (45 analysts) rates it strong buy, with a mean price target of $223. It reported earnings in this window, a natural checkpoint for the thesis.
2026-08-31Markup$181.75+0.0%Entry 9
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading overbought. Over the past year the shares are down 58%. Our forward projection puts the odds of a 10% gain over the next month near 27%. The street (45 analysts) rates it strong buy, with a mean price target of $223. It reported earnings in this window, a natural checkpoint for the thesis.
2026-08-30Markup$181.75+0.0%Entry 8
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading overbought. Over the past year the shares are down 58%. Our forward projection puts the odds of a 10% gain over the next month near 27%. The street (45 analysts) rates it strong buy, with a mean price target of $223. It reported earnings in this window, a natural checkpoint for the thesis.
2026-08-29Markup$181.75+0.0%Entry 7
Our analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading overbought. Over the past year the shares are down 58%. Our forward projection puts the odds of a 10% gain over the next month near 27%. The street (45 analysts) rates it strong buy, with a mean price target of $223. It reported earnings in this window, a natural checkpoint for the thesis.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
