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Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT).
ZW Data Action Technologies's Degree of Financial Leverage for the quarter that ended in Jun. 2026 was 1.16. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for ZW Data Action Technologies's Degree of Financial Leverage or its related term are showing as below:
CNET's Degree of Financial Leverage is ranked worse than 66.09% of 976
companies
in the Media - Diversified industry
Industry Median: 0.96
vs CNET: 1.16
ZW Data Action Technologies (NAS:CNET) Degree of Financial Leverage Explanation
Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.
The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.
Be Aware
The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.
ZW Data Action Technologies Degree of Financial Leverage Related Terms
ZW Data Action Technologies Degree of Financial Leverage Historical Data
* 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.
ZW Data Action Technologies Degree of Financial Leverage Chart
CNET vs VSME, TGNT, CHR: Degree of Financial Leverage Comparison
For the Advertising Agencies subindustry, ZW Data Action Technologies's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage 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.
ZW Data Action Technologies Degree of Financial Leverage vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, ZW Data Action Technologies's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where ZW Data Action Technologies's Degree of Financial Leverage 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.
** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Financial Leverage of 1.16 mean?
ZW Data Action Technologies (CNET) has a Degree of Financial Leverage of 1.16 as of Jun. 2026. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for ZW Data Action Technologies and its competitors. According to the industry distribution chart, ZW Data Action Technologies ranks #645 out of 976 companies in the Media - Diversified industry, placing it in the top 66.1%.
Is ZW Data Action Technologies' Degree of Financial Leverage too high?
ZW Data Action Technologies' current Degree of Financial Leverage is 1.16. The Media - Diversified industry median Degree of Financial Leverage is 0.96. ZW Data Action Technologies' value of 1.16 is 20.8% above this industry median. Based on the distribution chart, ZW Data Action Technologies ranks #645 out of 976 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, ZW Data Action Technologies has a GF Score™ of 34/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ZW Data Action Technologies' Degree of Financial Leverage compare to VSME and TGNT?
According to the Media - Diversified industry distribution chart, ZW Data Action Technologies ranks #645 out of 976 companies for Degree of Financial Leverage. This places ZW Data Action Technologies in the lower half of its industry. The industry median Degree of Financial Leverage is 0.96. ZW Data Action Technologies' value of 1.16 is 20.8% 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 Degree of Financial Leverage for a Media - Diversified company?
The median Degree of Financial Leverage among Media - Diversified companies is 0.96, based on 976 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Financial Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Financial Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ZW Data Action Technologies's current Degree of Financial Leverage of 1.16 is 20.8% 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 Degree of Financial Leverage mean?
A high Degree of Financial Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for ZW Data Action Technologies and its competitors. For the Media - Diversified industry, the median Degree of Financial Leverage is 0.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ZW Data Action Technologies's current Degree of Financial Leverage is 1.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ZW Data Action Technologies stock overvalued right now?
Based on GuruFocus' analysis, ZW Data Action Technologies (CNET) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.26, compared to a current price of $1.39 — trading 434.7% above its estimated fair value. The current Degree of Financial Leverage is 1.16 and 20.8% above the Media - Diversified industry median of 0.96. ZW Data Action Technologies' overall GF Score™ is 34/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Financial Leverage calculated?
Degree of Financial Leverage is calculated from a company's financial statements. For ZW Data Action Technologies (CNET), the current Degree of Financial Leverage is 1.16 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 ZW Data Action Technologies (CNET) Overvalued in 2026?
Based on GuruFocus' analysis, ZW Data Action Technologies stock appears to be overvalued.
The current stock price of $1.39 is trading 434.7% above its estimated GF Value™ of $0.26.
GuruFocus considers ZW Data Action Technologies to be Significantly Overvalued.
Key valuation signals for CNET:
Degree of Financial Leverage: 1.16
GF Value™: $0.26 vs. price of $1.39 (434.7% above fair value)
Industry Position: 20.8% above the Media - Diversified median (#645 of 976)
No single metric tells the full story. See the CNET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ZW Data Action Technologies Inc provides one-stop services for clients on its Omni-channel advertising, precision marketing, influencer marketing and data analysis management system. It also develops block-chain enabled web/mobile applications and provides Software-as-a-Service services for clients. In addition, it provides intellectual property licensing services. The company derives revenue from distributing the right to use search engine marketing service it purchased from key search engines to increase the sales conversion rate for clients business promotion on both mobile and computer searches; providing internet advertising and related marketing services for clients businesses; providing intellectual property licensing services; and providing Blockchain-based SaaS Services.
34GF Score
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Degree of Financial Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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