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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
ZW Data Action Technologies's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 1.34. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for ZW Data Action Technologies's Degree of Operating Leverage or its related term are showing as below:
CNET's Degree of Operating Leverage is ranked worse than 55.13% of 985
companies
in the Media - Diversified industry
Industry Median: 0.94
vs CNET: 1.34
ZW Data Action Technologies (NAS:CNET) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
ZW Data Action Technologies Degree of Operating Leverage Related Terms
ZW Data Action Technologies Degree of Operating 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 Operating Leverage Chart
CNET vs VSME, TGNT, CHR: Degree of Operating Leverage Comparison
For the Advertising Agencies subindustry, ZW Data Action Technologies's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating 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 Operating Leverage vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, ZW Data Action Technologies's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where ZW Data Action Technologies's Degree of Operating 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 EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating 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 Operating Leverage of 1.34 mean?
ZW Data Action Technologies (CNET) has a Degree of Operating Leverage of 1.34 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for ZW Data Action Technologies and its competitors. According to the industry distribution chart, ZW Data Action Technologies ranks #543 out of 985 companies in the Media - Diversified industry, placing it in the top 55.1%.
Is ZW Data Action Technologies' Degree of Operating Leverage too high?
ZW Data Action Technologies' current Degree of Operating Leverage is 1.34. The Media - Diversified industry median Degree of Operating Leverage is 0.94. ZW Data Action Technologies' value of 1.34 is 42.6% above this industry median. Based on the distribution chart, ZW Data Action Technologies ranks #543 out of 985 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 Operating Leverage compare to VSME and TGNT?
According to the Media - Diversified industry distribution chart, ZW Data Action Technologies ranks #543 out of 985 companies for Degree of Operating Leverage. This places ZW Data Action Technologies in the lower half of its industry. The industry median Degree of Operating Leverage is 0.94. ZW Data Action Technologies' value of 1.34 is 42.6% 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 Operating Leverage for a Media - Diversified company?
The median Degree of Operating Leverage among Media - Diversified companies is 0.94, based on 985 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating 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 Operating Leverage of 1.34 is 42.6% 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 Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for ZW Data Action Technologies and its competitors. For the Media - Diversified industry, the median Degree of Operating Leverage is 0.94 — 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 Operating Leverage is 1.34. 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 $1.34 — trading 415.4% above its estimated fair value. The current Degree of Operating Leverage is 1.34 and 42.6% above the Media - Diversified industry median of 0.94. 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 Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For ZW Data Action Technologies (CNET), the current Degree of Operating Leverage is 1.34 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 $1.34 is trading 415.4% 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 Operating Leverage: 1.34
GF Value™: $0.26 vs. price of $1.34 (415.4% above fair value)
Industry Position: 42.6% above the Media - Diversified median (#543 of 985)
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 Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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