FCF Yield
Higher than 48% of Technology sector peers
Updated 22h ago
Sector Performance
48th percentileZS
3.1%
Sector Median
3.2%
Sector Avg
3.3%
Deep Analysis
Zscaler’s current free cash flow (FCF) yield of 3.1% measures the cash the company generates per share relative to its stock price, so a higher yield generally signals better value.
This puts Zscaler just below the technology sector median of 3.2%, ranking in the 48th percentile among its peers — meaning it sits near the middle of the pack in terms of cash-flow valuation. The year-over-year and quarter-over-quarter changes for this metric are both listed as N/A, and the trend over the last eight quarters is also N/A, so no directional information is available. With a yield that is essentially in line with the sector median but no trend data to assess momentum, the metric neither highlights a clear discount nor a premium. The combination of a neutral level and absent trend implies a balanced risk-opportunity profile without a strong signal for outperformance or undervaluation. This supports the overall NEUTRAL verdict, as the FCF yield does not provide a reason to be either overweight or underweight the stock relative to its sector.
Frequently Asked Questions
What does the FCF Yield tell investors about ZS?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does ZS's FCF Yield compare to its sector?
ZS's FCF Yield of 3.1% compares to a Technology sector median of 3.2%, placing it in the 48th percentile.
Who are ZS's closest peers by FCF Yield?
The closest Technology peers by FCF Yield include: DDOG (1.4%), SMTC (1.2%), SHOP (1.0%), MRVL (0.9%), AMD (0.9%).
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
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3.1%
Sector Median
3.2%
Sector Avg
3.3%
How ZS's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.