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Zip CoZIZTF 70 Debt-to-EBITDA is 6.56 as of Jun. 2026, which is 258% above its 10-year median of 1.83. GuruFocus rates ZIZTF with a GF Score™ of 70/100 and a GF Value™ of $1.91 (Fairly Valued). The stock has 5 warning signs investors should review. Among 283 Credit Services companies, Zip Co ranks better than 56.54% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Zip Co's Debt-to-EBITDA or its related term are showing as below:
ZIZTF'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -132.48 Med: 1.83 Max: 65.95
Current: 6.64
During the past 13 years, the highest Debt-to-EBITDA Ratio of Zip Co was 65.95. The lowest was -132.48. And the median was 1.83.
ZIZTF's Debt-to-EBITDA is ranked better than 56.54% of 283
companies
in the Credit Services industry
Industry Median: 8.56
vs ZIZTF: 6.64
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Zip Co Debt-to-EBITDA Related Terms
Zip Co Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Zip Co's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Credit Services subindustry, Zip Co's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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.
Zip Co Debt-to-EBITDA vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Zip Co's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Zip Co's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is two times the quarterly (Jun. 2026) EBITDA data.
Zip Co (ZIZTF) has a Debt-to-EBITDA of 6.56 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Zip Co. This is 258% above median its historical median of 1.83. According to the industry distribution chart, Zip Co ranks #123 out of 283 companies in the Credit Services industry, placing it in the top 43.5%.
Is Zip Co's Debt-to-EBITDA too high?
Zip Co's current Debt-to-EBITDA of 6.56 is 258% above median its 10-year median of 1.83. The Credit Services industry median Debt-to-EBITDA is 8.56. Zip Co's value of 6.56 is 23.4% below this industry median. Based on the distribution chart, Zip Co ranks #123 out of 283 companies in the Credit Services industry, which is above the industry midpoint. Overall, Zip Co has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Zip Co's Debt-to-EBITDA compare to V and MA?
According to the Credit Services industry distribution chart, Zip Co ranks #123 out of 283 companies for Debt-to-EBITDA. This puts Zip Co in the upper half of its industry. The industry median Debt-to-EBITDA is 8.56. Zip Co's value of 6.56 is 23.4% below this benchmark. While the company's 10-year median is 1.83 vs. the industry median of 8.56, Zip Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Credit Services company?
The median Debt-to-EBITDA among Credit Services companies is 8.56, based on 283 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zip Co's current Debt-to-EBITDA of 6.56 is 23.4% below 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Zip Co. For the Credit Services industry, the median Debt-to-EBITDA is 8.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zip Co's current Debt-to-EBITDA is 6.56, which is 258% above median its own 10-year median of 1.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zip Co stock overvalued right now?
Based on GuruFocus' analysis, Zip Co (ZIZTF) is currently considered Fairly Valued. The stock's GF Value™ is $1.91, compared to a current price of $1.88 — trading 1.6% below its estimated fair value. The current Debt-to-EBITDA is 6.56, which is 258% above median its 10-year median of 1.83 and 23.4% below the Credit Services industry median of 8.56. Zip Co's overall GF Score™ is 70/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Zip Co (ZIZTF), the current Debt-to-EBITDA is 6.56 as of Jun. 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 Zip Co (ZIZTF) Overvalued in 2026?
Based on GuruFocus' analysis, Zip Co stock appears to be undervalued.
The current stock price of $1.88 is trading 1.6% below its estimated GF Value™ of $1.91.
GuruFocus considers Zip Co to be Fairly Valued.
Key valuation signals for ZIZTF:
Debt-to-EBITDA: 6.56 (258% above median its 10-year median of 1.83)
GF Value™: $1.91 vs. price of $1.88 (1.6% below fair value)
Industry Position: 23.4% below the Credit Services median (#123 of 283)
No single metric tells the full story. See the ZIZTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zip is a credit provider operating two segments: Australia and New Zealand, and the US. Founded in Australia in 2013, it has over 6 million active customers and partners with over 85,000 merchants. In Australia, Zip positions itself as a credit card alternative, with several revolving credit products. Customers can carry the balance over time with a monthly fee and set their own repayment schedule. The US and New Zealand offering is a far more vanilla BNPL offering: Pay-in-4 in New Zealand and Pay-in-Z in the US, where customers pay back in fixed instalments. The US segment is built on the 2020 acquisition of QuadPay and has recently become Zip's largest and fastest-growing segment.
70GF Score
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