Zip CoASX:ZIP +3.51%62 EBITDA Margin % is 31.19% as of Dec. 2025. GuruFocus rates ASX:ZIP with a GF Score™ of 62/100 and a GF Value™ of A$2.07 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 413 Credit Services companies, Zip Co ranks better than 65.38% on this metric.
EBITDA Margin % is calculated as EBITDA divided by its Revenue. Zip Co's EBITDA for the
six
months ended in Dec. 2025 was A$205 Mil. Zip Co's Revenue for the
six
months ended in Dec. 2025 was A$658 Mil. Therefore, Zip Co's EBITDA margin for the quarter that ended in Dec. 2025 was 31.19%.
Zip Co (ASX:ZIP) EBITDA Margin % Explanation
EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
Zip Co EBITDA Margin % Related Terms
Zip Co EBITDA Margin % Historical Data
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The historical data trend for Zip Co's EBITDA Margin % 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 EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % 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 EBITDA Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Zip Co's EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where Zip Co's EBITDA Margin % 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 EBITDA Margin % of 31.19% as of Dec. 2025. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Zip Co and its competitors. According to the industry distribution chart, Zip Co ranks #143 out of 413 companies in the Credit Services industry, placing it in the top 34.6%.
Is Zip Co's EBITDA Margin % too high?
Zip Co's current EBITDA Margin % is 31.19%. The Credit Services industry median EBITDA Margin % is 21.03. Zip Co's value of 31.19% is 48.3% above this industry median. Based on the distribution chart, Zip Co ranks #143 out of 413 companies in the Credit Services industry, which is above the industry midpoint. 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 EBITDA Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Zip Co ranks #143 out of 413 companies for EBITDA Margin %. This puts Zip Co in the upper half of its industry. The industry median EBITDA Margin % is 21.03. Zip Co's value of 31.19% is 48.3% 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 EBITDA Margin % for a Credit Services company?
The median EBITDA Margin % among Credit Services companies is 21.03, based on 413 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zip Co's current EBITDA Margin % of 31.19% is 48.3% 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 EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Zip Co and its competitors. For the Credit Services industry, the median EBITDA Margin % is 21.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zip Co's current EBITDA Margin % is 31.19%. 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$2.07, compared to a current price of A$3.24 — trading 56.5% above its estimated fair value. The current EBITDA Margin % is 31.19% and 48.3% above the Credit Services industry median of 21.03. 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 EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For Zip Co (ASX:ZIP), the current EBITDA Margin % is 31.19% 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$3.24 is trading 56.5% above its estimated GF Value™ of A$2.07.
GuruFocus considers Zip Co to be Significantly Overvalued.
Key valuation signals for ASX:ZIP:
EBITDA Margin %: 31.19%
GF Value™: A$2.07 vs. price of A$3.24 (56.5% above fair value)
Industry Position: 48.3% above the Credit Services median (#143 of 413)
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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