ZSNEUTRAL

ZS EV/EBITDA Analysis

-425.5x

Updated 35h ago·SEC filings & market data

Key Takeaway

EV/EBITDA compares a company’s total enterprise value to its earnings before interest, taxes, depreciation, and amortization; at -402.5x, ZS has negative EBITDA, meaning the company is not generating positive operating profit on that basis.

Sector Performance

0th percentile

-425.5x

Sector Median

13.6x

Sector Avg

-62.3x

Prior Period

-402.5x(Aug 2026)

↑ Improving

📊

Deep Analysis

This level sits far below the sector median of 13.6x, placing ZS in the 1st percentile among peers, so nearly all comparable companies show positive or far smaller negative ratios. The metric is decreasing: it fell 17.4% year-over-year and 7.4% quarter-over-quarter, moving from -324.3x to -402.5x over the last several quarters. A deeply negative and worsening EV/EBITDA implies higher investment risk, as deteriorating operating losses make the valuation harder to justify on fundamentals alone. This pattern contradicts the overall NEUTRAL verdict, since the metric reflects a deteriorating earnings profile that would normally push toward a negative assessment.

Frequently Asked Questions

What does the EV/EBITDA tell investors about ZS?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are ZS's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: SG (-17.2x), FLNC (-22.5x), EVGO (-22.6x), LSPD (-26.9x), BRZE (-29.6x).

📚

Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.