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Zip Co (ZIP) Fair Value & Analysis

Financial Services · AU · Market cap A$3.0B

ZC Zip Co ZIP · AU
PriceA$2.93
Fair ValueA$0.8300
Upside-71.7%
Quality95/100
Evidence: High Range A$0.6200 – A$0.8300

Fair value as of: Jun 26, 2026

From 17 valuation models · updated 4 days ago

Share price +40.9% over the past month.

Price vs Fair Value (12 months)

A$4.35 A$1.31 Fair Value A$0.8300 Jun 2025 Jun 2026

12‑month range A$1.31 – A$4.35 · fair‑value band A$0.6200 – A$0.8300 · the A$2.93 price screens above the A$0.8300 fair value. As of Jun 26, 2026.

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Analysis

Zip Co (ZIP) currently trades at A$2.93, while our model-based Fair Value estimate is A$0.8300 — implying the stock looks roughly 71.7% overvalued today. We read business quality at 95/100 (high quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium — the entry price still matters most (evidence: high).

Over the trailing twelve months, Zip Co generated revenue of A$1.2B at a net margin of 9.0%. Revenue grew 29.2% year over year. It earns a return on equity of 15.9%. Net debt stands at A$2.0B. Fundamentals as of Jun 26, 2026

Key figures & financial health

Revenue (TTM) A$1.2B
Revenue growth (YoY) +29.2%
Net margin 9.0%
Return on equity 15.9%
Free cash flow −A$69.3M FY2025
P/E ratio 29.8
More key figures
Operating margin 40.8%
EPS (TTM) A$0.0800
EPS growth (YoY) +121%
Net debt A$2.0B FY2025

Figures from reported company fundamentals (EODHD) · as of Jun 26, 2026. TTM = trailing twelve months.

About the company

Zip Co Limited engages in the provision of digital retail finance, personal finance, and payments solutions in Australia, New Zealand, and the United States. The company offers retail line of credit products and personal loans; retail installment products; and Buy Now Pay Later installment products to consumers. It also provides unsecured loans through banking partners, as well as online and in-store; and access to point-of-sale credit; and digital payment services. The company was formerly known as ZipMoney Limited and changed its name to Zip Co Limited in December 2017. Zip Co Limited was incorporated in 2009 and is headquartered in Sydney, Australia.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zip Co reported revenue of A$1.1B in FY2025 versus A$394M in FY2021, a compound +28.4%/yr. Reported net income was A$79.9M in FY2025.

Revenue +28.4%/yr
FY21 A$394M
FY22 A$598M
FY23 A$688M
FY24 A$874M
FY25 A$1.1B
Net income
FY21 −A$678M
FY22 −A$1.1B
FY23 −A$384M
FY24 A$3.7M
FY25 A$79.9M

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Similar stocks

6 more Credit Services stocks, each showing price versus our Fair Value estimate (as of Jun 26, 2026).

Stock Price Fair Value vs Fair Value
Visa Inc V 5,663 MXN 3,002 MXN -47%
Mastercard Incorporated MA C$29.95 C$17.84 -40%
M4I M4I €430.50 €367.81 -15%
American Express Company AXP C$28.87 C$17.03 -41%
Capital One Financial Corporation COF $200.70 $125.08 -38%
Bajaj Finance Limited BAJFINANCE ₹884.10 ₹604.72 -32%

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Frequently asked questions

Is Zip Co (ZIP) undervalued?
As of Jun 26, 2026, our model estimates a fair value of A$0.8300 versus a price of A$2.93 — about −72% (overvalued). Model-based estimate, not financial advice.
What is the fair value of ZIP?
Our 21-model fair value for Zip Co is A$0.8300 (as of Jun 26, 2026), built from audited fundamentals. The current price is A$2.93.
What is the quality score of ZIP?
Zip Co has a Quality Score of 95/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Zip Co (ZIP)?
Zip Co reported trailing-twelve-month revenue of about A$1.2B (latest available figure, as of Jun 26, 2026).
What is the net profit margin of ZIP?
The net profit margin of Zip Co is about 9.0%, meaning it keeps roughly 9.0% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.