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Zip Co Limited (ZIZTF) fair value: what the stock is really worth

As of Oct 1, 2026: fair value of Zip Co Limited $0.59, price $1.33, upside -55.6%, quality 29 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.

  1. Fair value above price? No
  2. Good quality? No
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Financial Services · US · Home Australia

ZC Zip Co Limited logo Some data Sep 24, 2026

Zip Co Limited

ZIZTF · US

Weakest SetupStrongly overvalued and low quality.

!Fair value $0.5900 · Strongly overvalued (−55.6%)
!Quality 29/100
!Expensive Growth (revenue 5y +46.4 %/yr)
!Thin margins · 9.0% net margin (TTM)
!High debt · negative free cash flow
!Mixed vs. peers (5/12)
!Moderate moat 61/100
!Evidence only medium, so the estimate is less certain
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What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

$6.50 $0.1666 Fair Value $0.5900 May 2021 Oct 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.

How to read this chart

60‑month range $0.1666 – $6.50 · fair‑value band $0.4400 – $0.7400 · the $1.33 price screens above the $0.5900 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 24, 2026.

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Company profile

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.

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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.

Stock analysis

Zip Co Limited (ZIZTF) currently trades at $1.33, while our model-based Fair Value estimate is $0.5900, 55.6% below the price, so the stock looks overvalued today.

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Valuation

Bull case: the DCF Models group reads highest at a median of $4.85 per share, and 3 of the 7 models we run sit above the $1.33 price.

Bear case: the Asset-Based group reads lowest at $0.2600, and 4 of the 7 models stay below the price. Evidence for this calculation is medium.

Scenario range: $0.4400 (bear) to $0.7400 (bull), the price of $1.33 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 29/100 (below-average quality), in the Financial Services sector.

Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.

Zip Co Limited reported revenue of A$1.1B in FY2025 versus A$403M in FY2021, a compound +27.7%/yr. Reported net income was A$79.9M in FY2025.

Key figures

Market cap $2.7B · P/E ratio 22.2 · P/S ratio 1.65 · EPS (TTM) $0.0600 · Net margin 7.5% · Return on equity 15.9% · Return on assets (EBIT) −2.4% · Operating margin 40.8%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 42 out of 100 (medium confidence).

What moves the price

The share trades about 61% below its 52-week high and 40% above its 52-week low, currently below its 200-day average.

For context, the median of 10 Financial Services peers we cover trades at 10% fair-value upside, at −56%, ZIZTF screens richer than that median.

Fair Value models

Bear $0.4400 Fair Value $0.5900 Bull $0.7400
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then ($0.0600 per share) are deliberately not added. Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Highest evidence
Residual Income $0.3500 $0.4000 $0.5400 68
Owner Earnings $1.58 $4.85 $11.47 66
P/E Multiple $0.4300 $0.5700 $0.7200 63
All 7 models by family
DCF Models
Owner Earnings $1.58 $4.85 $11.47 66
Earnings-Based
Graham-Dodd $0.3000 $2.10 $2.94 61
Lynch FV $1.08 $1.55 $2.01 59
Multiples
P/E Multiple $0.4300 $0.5700 $0.7200 63
P/B Multiple $0.4100 $0.5500 $0.6900 55
Asset-Based
NCAV (Graham) $0.2000 $0.2600 $0.3900 54
Economic Profit
Residual Income $0.3500 $0.4000 $0.5400 68

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Quality Score breakdown

Overall quality 29/100

Of which business quality 24 · Market factors (momentum, volatility) 12

Profitability 33
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 1
Earnings quality: real cash, not paper profit
Fin. Strength 16
Balance sheet, leverage, solvency risk
Investment 69
Disciplined investing over empire-building
Low Volatility 0
Calm price path (market factor)
Momentum 22
Price trend over the last 3–12 months (market factor)
52W Momentum 8
Distance to the 52-week high (market factor)
Net Issuance 0
Share count: buybacks or dilution?

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Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+23.5%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+20.0%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+46.4%
Start year 2020 (pandemic). Over 10 years: +217.9% a year
Revenue growth 15 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+81.8%
Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
11.5% (2020) → 25.1% (2025)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: no profitable base year
not computed

ZIZTF screens overvalued: fair value 56% below the price. Compare with Visa Inc →

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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Credit Services · 329 stocks

Beats the industry median on 5/12 measures
A mixed picture versus its industry peers.
Valuation
Quality Score 29 · Bottom 25%
Fair Value upside −70.5% · Bottom 25%
Profitability
Return on equity (TTM) 15.9% · Top 25%
Return on assets 8.5% · Top 25%
Net margin (TTM) 9.0% · Below median
Operating margin (TTM) 40.8% · Above median
Growth and dividend
Revenue growth 29.2% · Above median
Balance sheet
Debt / equity 3.40× · Highest 25%

Valuation Multiplesvs Credit Services median · lower = cheaper

P/E (TTM) 22.2× · Priciest 25%
P/B 5.56× · Priciest 25%
P/S (TTM) 3.23× · Pricier than median
EV/EBITDA 11.5× · Cheaper than median

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)0 · sector 53
FUTURE (revenue growth)100 · sector 48
PAST (return on equity)64 · sector 32
HEALTH (low debt)0 · sector 59
DIVIDEND (yield)0 · sector 65

VALUE 0: the price sits above our fair-value range.

Context: sector, industry, market

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Credit Services stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value
Visa Inc V $359.33 $221.29 −38%
Mastercard Incorporated MA $551.47 $359.54 −35%
American Express Company AXP $304.10 $208.54 −31%
Capital One Financial Corporation COF $193.07 $125.94 −35%
Bajaj Finance Limited BAJFINANCE ₹948.30 ₹1,100 +16%
PayPal Holdings PYPL $53.06 $104.12 +96%
Shriram Finance Limited SHRIRAMFIN ₹994.10 ₹1,364 +37%
Affirm Holdings AFRM $67.21 $73.93 +10%
Synchrony Financial, SYF $71.52 $141.92 +98%
SoFi Technologies, Inc SOFI $15.72 $5.53 −65%

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Zip Co Limited · Fair Value
$0.5900 −56%Fair Value
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Cite: Fair Value Calculator (2026). "Zip Co Limited Fair Value". https://www.fairvalue-calculator.com/stock/ZIZTF

Frequently asked questions

Is Zip Co Limited (ZIZTF) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $0.5900 versus a price of $1.33, about −56% upside (overvalued).
What is the fair value of ZIZTF?
Our model-based fair value for Zip Co Limited is $0.5900 (as of Sep 24, 2026), built from audited fundamentals. The current price: $1.33.
What is the quality score of ZIZTF?
Zip Co Limited has a Quality Score of 29/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Zip Co Limited (ZIZTF)?
Our model-based price target is the fair value of $0.5900 (as of Sep 24, 2026) from 7 valuation models. Cautious scenario $0.4400, optimistic scenario $0.7400. It is a calculation from audited fundamentals, not an analyst target.
What is the Zip Co Limited stock forecast for 2026?
Our models put fair value at $0.5900, about −56% upside versus a price of $1.33 (overvalued). Cautious scenario $0.4400, optimistic scenario $0.7400. The calculation is refreshed regularly with new filings.
What is the revenue of Zip Co Limited (ZIZTF)?
Zip Co Limited reported trailing-twelve-month revenue of about A$1.2B (latest available figure, as of Sep 24, 2026).
What is the intrinsic value of Zip Co Limited (ZIZTF)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Zip Co Limited it is $0.5900 per share (as of Sep 24, 2026), against a price of $1.33. It is the blended result of 7 valuation models (cash flow, earnings, asset, dividend).
Is Zip Co Limited stock overvalued or undervalued in 2026?
As of Sep 24, 2026, ZIZTF trades above its calculated fair value: price $1.33, fair value $0.5900, a gap of about −56% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of ZIZTF?
No. The price is what the market pays today ($1.33); the fair value is what the company's own numbers justify ($0.5900). For Zip Co Limited the two are $0.7400 per share apart. That gap is exactly why we show both numbers side by side.
How much is Zip Co Limited worth?
The market values Zip Co Limited at about $2.7B (market capitalisation, as of Sep 24, 2026). Per share that is $1.33; our models calculate a fair value of $0.5900 per share.
What do the bullish and bearish scenarios say about ZIZTF?
Our models span a range for Zip Co Limited: cautious scenario $0.4400, base $0.5900, optimistic $0.7400 per share (as of Sep 24, 2026, price $1.33). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of ZIZTF?
Zip Co Limited trades at a price-to-earnings ratio of 22.2 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $0.5900 is built from several models across several years. Other multiples: P/B 5.6, P/S 3.2, EV/EBITDA 11.5.
How solid is the balance sheet of Zip Co Limited (ZIZTF)?
Balance-sheet figures for Zip Co Limited (as of Sep 24, 2026): return on equity 15.9%, debt of 3.40 per unit of equity. They feed the Quality Score of 29/100, which measures business quality independently of the share price.
How far is ZIZTF from its 52-week high?
Zip Co Limited trades at $1.33, about 61% below its 52-week high of $3.39 and 40% above the low of $0.9500 (as of Oct 1, 2026). Distance from the high says nothing about value: that is what the fair value of $0.5900 is for.
Which stocks are comparable to Zip Co Limited?
From the same area (Financial Services) we also value Visa Inc, Mastercard Incorporated, American Express Company, Capital One Financial Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Zip Co Limited stock attractive at the current price?
The data as of Sep 24, 2026: price $1.33, calculated fair value $0.5900 (−56%), Quality Score 29/100, from 7 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of ZIZTF calculated?
We run Zip Co Limited through 7 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $0.5900, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Zip Co Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Zip Co Limited (ZIZTF)?
The closing price on Oct 1, 2026 was $1.33. Our model-based fair value is $0.5900, about −56% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Zip Co Limited right now?
The price sits above even our optimistic bull case ($0.7400). The favourable scenario is already priced in. Weak quality (29/100) and above fair value at the same time, the margin of safety is missing on both counts. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Key figures of Zip Co Limited

How large is the market capitalisation of Zip Co Limited (ZIZTF)?
The market capitalisation of Zip Co Limited is $2.7B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Zip Co Limited (ZIZTF)?
The price-to-sales ratio of Zip Co Limited is 1.65 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Zip Co Limited (ZIZTF)?
Earnings per share at Zip Co Limited are $0.0600 (price ÷ EPS = P/E 22.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Zip Co Limited (ZIZTF)?
The net margin of Zip Co Limited is 7.5% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Zip Co Limited (ZIZTF)?
The return on equity (ROE) of Zip Co Limited is 15.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Zip Co Limited (ZIZTF)?
On an EBIT basis the return on assets of Zip Co Limited is −2.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Zip Co Limited (ZIZTF)?
The operating margin of Zip Co Limited is 40.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Zip Co Limited (ZIZTF)?
Revenue at Zip Co Limited is growing +29.2% versus a year earlier (3y avg +20.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Zip Co Limited (ZIZTF)?
Earnings per share at Zip Co Limited are growing +121% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Zip Co Limited (ZIZTF) generate?
The free cash flow of Zip Co Limited is −A$69.3M (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Zip Co Limited (ZIZTF) carry?
The net debt of Zip Co Limited is A$2.0B (fiscal year 2025). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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