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Zip CoASX:ZIP +8.47%62 Debt-to-Equity is 3.82 as of Dec. 2025, which is 28% below its 10-year median of 5.34. GuruFocus rates ASX:ZIP with a GF Score™ of 62/100 and a GF Value™ of A$2.09 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 455 Credit Services companies, Zip Co ranks worse than 78.68% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Zip Co's Debt-to-Equity or its related term are showing as below:
ASX:ZIP'
s Debt-to-Equity Range Over the Past 10 Years
Min: 1.49 Med: 5.34 Max: 18.85
Current: 3.82
During the past 13 years, the highest Debt-to-Equity Ratio of Zip Co was 18.85. The lowest was 1.49. And the median was 5.34.
ASX:ZIP's Debt-to-Equity is ranked worse than 78.68% of 455
companies
in the Credit Services industry
Industry Median: 1.23
vs ASX:ZIP: 3.82
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Zip Co Debt-to-Equity Related Terms
Zip Co Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Zip Co's Debt-to-Equity 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-Equity, along with its competitors' market caps and Debt-to-Equity 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-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Zip Co's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Zip Co's Debt-to-Equity 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.
Zip Co (ASX:ZIP) has a Debt-to-Equity of 3.82 as of Dec. 2025. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Zip Co and its competitors. This is 28% below median its historical median of 5.34. Over the past decade, Zip Co's Debt-to-Equity has ranged from 1.49 to 18.85. According to the industry distribution chart, Zip Co ranks #358 out of 455 companies in the Credit Services industry, placing it in the top 78.7%.
Is Zip Co's Debt-to-Equity too high?
Zip Co's current Debt-to-Equity of 3.82 is 28% below median its 10-year median of 5.34. Over the past 10 years, this metric has ranged from a low of 1.49 to a high of 18.85. The Credit Services industry median Debt-to-Equity is 1.23. Zip Co's value of 3.82 is 210.6% above this industry median. Based on the distribution chart, Zip Co ranks #358 out of 455 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Zip Co has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zip Co's Debt-to-Equity compare to V and MA?
According to the Credit Services industry distribution chart, Zip Co ranks #358 out of 455 companies for Debt-to-Equity. This places Zip Co in the lower half of its industry. The industry median Debt-to-Equity is 1.23. Zip Co's value of 3.82 is 210.6% above this benchmark. Historically, Zip Co's own Debt-to-Equity has ranged from 1.49 to 18.85 over the past decade. While the company's 10-year median is 5.34 vs. the industry median of 1.23, Zip Co has consistently been above 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-Equity for a Credit Services company?
The median Debt-to-Equity among Credit Services companies is 1.23, based on 455 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zip Co's current Debt-to-Equity of 3.82 is 210.6% 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 Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Zip Co and its competitors. For the Credit Services industry, the median Debt-to-Equity is 1.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zip Co's current Debt-to-Equity is 3.82, which is 28% below median its own 10-year median of 5.34. 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 (ASX:ZIP) is currently considered Significantly Overvalued. The stock's GF Value™ is A$2.09, compared to a current price of A$3.20 — trading 53.1% above its estimated fair value. The current Debt-to-Equity is 3.82, which is 28% below median its 10-year median of 5.34 and 210.6% above the Credit Services industry median of 1.23. Zip Co's overall GF Score™ is 62/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Zip Co (ASX:ZIP), the current Debt-to-Equity is 3.82 as of Dec. 2025. 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 (ASX:ZIP) Overvalued in 2026?
Based on GuruFocus' analysis, Zip Co stock appears to be overvalued.
The current stock price of A$3.20 is trading 53.1% above its estimated GF Value™ of A$2.09.
GuruFocus considers Zip Co to be Significantly Overvalued.
Key valuation signals for ASX:ZIP:
Debt-to-Equity: 3.82 (28% below median its 10-year median of 5.34)
GF Value™: A$2.09 vs. price of A$3.20 (53.1% above fair value)
Industry Position: 210.6% above the Credit Services median (#358 of 455)
No single metric tells the full story. See the ASX:ZIP 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.
62GF Score
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