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Zai LabZLAB +0.38%68 3-Year FCF Growth Rate is 28.50% as of Mar. 2026. GuruFocus rates ZLAB with a GF Score™ of 68/100 and a GF Value™ of $30.09 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,116 Biotechnology companies, Zai Lab ranks better than 61.56% on this metric.
During the past 3 years, the average Free Cash Flow per Share Growth Rate was 28.50% per year.
During the past 5 years, the average Free Cash Flow per Share Growth Rate was 16.60% per year.
During the past 10 years, the average Free Cash Flow per Share Growth Rate was -16.70% per year.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Free Cash Flow per Share growth rate.
During the past 11 years, the highest 3-Year average Free Cash Flow per Share Growth Rate of Zai Lab was 28.50% per year. The lowest was -102.30% per year. And the median was -11.85% per year.
Free Cash Flow per Share is the amount of Free Cash Flow per outstanding share of the company's stock. Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company. It's used in the calculation of Forward Rate of Return (Yacktman) %.
Zai Lab 3-Year FCF Growth Rate Related Terms
ZLAB vs COAG, SLS, IOVA: 3-Year FCF Growth Rate Comparison
For the Biotechnology subindustry, Zai Lab's 3-Year FCF Growth Rate, along with its competitors' market caps and 3-Year FCF Growth Rate data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Zai Lab 3-Year FCF Growth Rate vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Zai Lab's 3-Year FCF Growth Rate distribution charts can be found below:
* The bar in red indicates where Zai Lab's 3-Year FCF Growth Rate falls into.
This is the 3-year average growth rate of Free Cash Flow per Share. The growth rate is calculated using exponential compounding based on the latest four year annual data.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Free Cash Flow per Share growth rate.
What does a 3-Year FCF Growth Rate of 28.50% mean?
Zai Lab (ZLAB) has a 3-Year FCF Growth Rate of 28.50% as of Mar. 2026. 3-Year FCF Growth Rate is the 3-year average growth rate of Free Cash Flow per Share. View historical data for Zai Lab and its competitors. According to the industry distribution chart, Zai Lab ranks #429 out of 1116 companies in the Biotechnology industry, placing it in the top 38.4%.
Is Zai Lab's 3-Year FCF Growth Rate too high?
Zai Lab's current 3-Year FCF Growth Rate is 28.50%. The Biotechnology industry median 3-Year FCF Growth Rate is 19.30. Zai Lab's value of 28.50% is 47.7% above this industry median. Based on the distribution chart, Zai Lab ranks #429 out of 1116 companies in the Biotechnology industry, which is above the industry midpoint. Overall, Zai Lab has a GF Score™ of 68/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zai Lab's 3-Year FCF Growth Rate compare to COAG and SLS?
According to the Biotechnology industry distribution chart, Zai Lab ranks #429 out of 1116 companies for 3-Year FCF Growth Rate. This puts Zai Lab in the upper half of its industry. The industry median 3-Year FCF Growth Rate is 19.30. Zai Lab's value of 28.50% is 47.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year FCF Growth Rate for a Biotechnology company?
The median 3-Year FCF Growth Rate among Biotechnology companies is 19.30, based on 1,116 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year FCF Growth Rate significantly above this median, while those in the bottom quartile fall well below. However, 3-Year FCF Growth Rate should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zai Lab's current 3-Year FCF Growth Rate of 28.50% is 47.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year FCF Growth Rate mean?
A high 3-Year FCF Growth Rate can signal that a stock is expensive relative to its fundamentals. 3-Year FCF Growth Rate is the 3-year average growth rate of Free Cash Flow per Share. View historical data for Zai Lab and its competitors. For the Biotechnology industry, the median 3-Year FCF Growth Rate is 19.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zai Lab's current 3-Year FCF Growth Rate is 28.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zai Lab stock overvalued right now?
Based on GuruFocus' analysis, Zai Lab (ZLAB) is currently considered Possible Value Trap. The stock's GF Value™ is $30.09, compared to a current price of $18.28 — trading 39.2% below its estimated fair value. The current 3-Year FCF Growth Rate is 28.50% and 47.7% above the Biotechnology industry median of 19.30. Zai Lab's overall GF Score™ is 68/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year FCF Growth Rate calculated?
3-Year FCF Growth Rate is calculated from a company's financial statements. For Zai Lab (ZLAB), the current 3-Year FCF Growth Rate is 28.50% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Zai Lab (ZLAB) Overvalued in 2026?
Based on GuruFocus' analysis, Zai Lab stock appears to be undervalued.
The current stock price of $18.28 is trading 39.2% below its estimated GF Value™ of $30.09.
GuruFocus considers Zai Lab to be Possible Value Trap.
Key valuation signals for ZLAB:
3-Year FCF Growth Rate: 28.50%
GF Value™: $30.09 vs. price of $18.28 (39.2% below fair value)
Industry Position: 47.7% above the Biotechnology median (#429 of 1116)
No single metric tells the full story. See the ZLAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zai Lab Ltd is a biopharmaceutical company focusing on discovering or licensing, developing, and commercializing proprietary therapeutics that address areas of unmet medical need including in the fields of oncology, autoimmune and infectious diseases. Zai Lab has a diverse pipeline of potentially first-in-class product candidates developed through in-house R&D and global partnerships. The company has successfully commercialized several products in China, including Zejula, Optune, Qinlock, and Nuzyra, with plans for further expansion The pipeline of proprietary drug candidates of the company includes ZL-1222, ZL-1311, ZL-6201 and many others.
68GF Score
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