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Zip CoASX:ZIP -3.69%66 Earnings Yield (Joel Greenblatt) % is 0.00% as of Dec. 2025. GuruFocus rates ASX:ZIP with a GF Score™ of 66/100 and a GF Value™ of A$2.09 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 546 Credit Services companies, Zip Co ranks better than 76.74% on this metric.
Zip Co's Enterprise Value for the quarter that ended in Dec. 2025 was A$6,546 Mil.
Zip Co's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was A$344 Mil. Zip Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2025 was 0.00%.
The historical rank and industry rank for Zip Co's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
ASX:ZIP'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -36.5 Med: -0.97 Max: 8.86
Current: 5.79
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Zip Co was 8.86%. The lowest was -36.50%. And the median was -0.97%.
ASX:ZIP's Earnings Yield (Joel Greenblatt) % is ranked better than 76.74% of 546
companies
in the Credit Services industry
Industry Median: 0.975
vs ASX:ZIP: 5.79
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Zip Co's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2025 was 0.00%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Zip Co (ASX:ZIP) Earnings Yield (Joel Greenblatt) % Explanation
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Zip Co Earnings Yield (Joel Greenblatt) % Related Terms
Zip Co Earnings Yield (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Zip Co's Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Zip Co's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Zip Co's Earnings Yield (Joel Greenblatt) % falls into.
Zip Co Earnings Yield (Joel Greenblatt) % Calculation
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Zip Cos Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Jun. 2025 is calculated as
For company reported semi-annually or annually, GuruFocus only calculate annual data for Earnings Yield (Joel Greenblatt) and apply the annual figure to corresponding quarter.
What does a Earnings Yield (Joel Greenblatt) % of 0.00% mean?
Zip Co (ASX:ZIP) has a Earnings Yield (Joel Greenblatt) % of 0.00% as of Dec. 2025. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Zip Co and its competitors. According to the industry distribution chart, Zip Co ranks #127 out of 546 companies in the Credit Services industry, placing it in the top 23.3%.
Is Zip Co's Earnings Yield (Joel Greenblatt) % too high?
Zip Co's current Earnings Yield (Joel Greenblatt) % is 0.00%. Based on the distribution chart, Zip Co ranks #127 out of 546 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Zip Co has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zip Co's Earnings Yield (Joel Greenblatt) % compare to V and MA?
According to the Credit Services industry distribution chart, Zip Co ranks #127 out of 546 companies for Earnings Yield (Joel Greenblatt) %. This places Zip Co in the top 23% of its industry — outperforming the majority of peers. The industry median Earnings Yield (Joel Greenblatt) % is 0.98. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield (Joel Greenblatt) % for a Credit Services company?
The median Earnings Yield (Joel Greenblatt) % among Credit Services companies is 0.98, based on 546 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Zip Co and its competitors. For the Credit Services industry, the median Earnings Yield (Joel Greenblatt) % is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zip Co's current Earnings Yield (Joel Greenblatt) % is 0.00%. 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$2.87 — trading 37.3% above its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 0.00%. Zip Co's overall GF Score™ is 66/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Zip Co (ASX:ZIP), the current Earnings Yield (Joel Greenblatt) % is 0.00% 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$2.87 is trading 37.3% above its estimated GF Value™ of A$2.09.
GuruFocus considers Zip Co to be Significantly Overvalued.
Key valuation signals for ASX:ZIP:
Earnings Yield (Joel Greenblatt) %: 0.00%
GF Value™: A$2.09 vs. price of A$2.87 (37.3% above fair value)
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.
66GF Score
Get the complete analysis for ASX:ZIP
Earnings Yield (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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