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Zip CoASX:ZIP +8.47%68 EV-to-EBIT is 17.77 as of Jul. 15, 2026. GuruFocus rates ASX:ZIP with a GF Score™ of 68/100 and a GF Value™ of A$2.09 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 311 Credit Services companies, Zip Co ranks better than 55.95% on this metric.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Zip Co's Enterprise Value is A$6,114 Mil.
Zip Co's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was A$344 Mil. Therefore, Zip Co's EV-to-EBIT for today is 17.77.
The historical rank and industry rank for Zip Co's EV-to-EBIT or its related term are showing as below:
ASX:ZIP'
s EV-to-EBIT Range Over the Past 10 Years
Min: -198.49 Med: -3.17 Max: 310.27
Current: 17.77
During the past 13 years, the highest EV-to-EBIT of Zip Co was 310.27. The lowest was -198.49. And the median was -3.17.
ASX:ZIP's EV-to-EBIT is ranked better than 55.95% of 311
companies
in the Credit Services industry
Industry Median: 24.2
vs ASX:ZIP: 17.77
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Zip Co's Enterprise Value for the quarter that ended in Dec. 2025 was A$6,546 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Zip Co's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was A$344 Mil.
* 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 EV-to-EBIT Related Terms
Zip Co EV-to-EBIT Historical Data
* Premium members only.
The historical data trend for Zip Co's EV-to-EBIT 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 EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Zip Co's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Zip Co's EV-to-EBIT falls into.
Zip Co's current Enterprise Value is A$6,114 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Zip Co's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was A$344 Mil.
* 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 EV-to-EBIT of 17.77 as of Jul. 15, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Zip Co and its competitors. According to the industry distribution chart, Zip Co ranks #137 out of 311 companies in the Credit Services industry, placing it in the top 44.1%.
Is Zip Co's EV-to-EBIT too high?
Zip Co's current EV-to-EBIT is 17.77. The Credit Services industry median EV-to-EBIT is 24.20. Zip Co's value of 17.77 is 26.6% below this industry median. Based on the distribution chart, Zip Co ranks #137 out of 311 companies in the Credit Services industry, which is above the industry midpoint. Overall, Zip Co has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zip Co's EV-to-EBIT compare to V and MA?
According to the Credit Services industry distribution chart, Zip Co ranks #137 out of 311 companies for EV-to-EBIT. This puts Zip Co in the upper half of its industry. The industry median EV-to-EBIT is 24.20. Zip Co's value of 17.77 is 26.6% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Credit Services company?
The median EV-to-EBIT among Credit Services companies is 24.20, based on 311 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zip Co's current EV-to-EBIT of 17.77 is 26.6% below 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Zip Co and its competitors. For the Credit Services industry, the median EV-to-EBIT is 24.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zip Co's current EV-to-EBIT is 17.77. 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 EV-to-EBIT is 17.77 and 26.6% below the Credit Services industry median of 24.20. Zip Co's overall GF Score™ is 68/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Zip Co (ASX:ZIP), the current EV-to-EBIT is 17.77 as of Jul. 15, 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 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:
EV-to-EBIT: 17.77
GF Value™: A$2.09 vs. price of A$3.20 (53.1% above fair value)
Industry Position: 26.6% below the Credit Services median (#137 of 311)
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.
68GF Score
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