ZTE (ZTCOF) EV-to-EBIT: 24.24 (As of Jul. 23, 2026) — 55% Above Median

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ZTCOF ZTE Corp ZTCOF
83 GF Score
Price $2.99
GF Value $3.12
Valuation Fairly Valued
! 5 Warning Signs
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What is ZTE EV-to-EBIT?

ZTE ZTCOF 83 EV-to-EBIT is 24.24 as of Jul. 23, 2026, which is 55% above its 10-year median of 15.64. GuruFocus rates ZTCOF with a GF Score™ of 83/100 and a GF Value™ of $3.12 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,769 Hardware companies, ZTE ranks worse than 50.03% on this metric.

EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, ZTE's Enterprise Value is $27,829 Mil. ZTE's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was $1,148 Mil. Therefore, ZTE's EV-to-EBIT for today is 24.24.

The historical rank and industry rank for ZTE's EV-to-EBIT or its related term are showing as below:

ZTCOF' s EV-to-EBIT Range Over the Past 10 Years
Min: -21.69   Med: 15.64   Max: 345.44
Current: 24.24

During the past 13 years, the highest EV-to-EBIT of ZTE was 345.44. The lowest was -21.69. And the median was 15.64.

ZTCOF's EV-to-EBIT is ranked worse than
50.03% of 1769 companies
in the Hardware industry
Industry Median: 20.94 vs ZTCOF: 24.24

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %. ZTE's Enterprise Value for the quarter that ended in Mar. 2026 was $16,999 Mil. ZTE's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was $1,148 Mil. ZTE's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 6.75%.


ZTE  (OTCPK:ZTCOF) EV-to-EBIT Explanation

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.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %.

ZTE's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

Earnings Yield (Joel Greenblatt) % (Q: Mar. 2026 ) =EBIT / Enterprise Value (Q: Mar. 2026 )
=1148.119/16999.34255
=6.75 %

ZTE's Enterprise Value for the quarter that ended in Mar. 2026 was $16,999 Mil.
ZTE's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,148 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.


ZTE EV-to-EBIT Related Terms


ZTE EV-to-EBIT Historical Data

* Premium members only.

The historical data trend for ZTE'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.

ZTE EV-to-EBIT Chart

ZTE Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EV-to-EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.89 10.57 8.05 15.35 19.52

ZTE Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EV-to-EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.71 14.52 23.32 19.52 21.65

ZTCOF vs CSCO, CIEN, MSI: EV-to-EBIT Comparison

For the Communication Equipment subindustry, ZTE'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.


ZTE EV-to-EBIT vs Hardware Industry

For the Hardware industry and Technology sector, ZTE's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where ZTE's EV-to-EBIT falls into.


ZTCOF
83GF Score
ZTE Corp ZTCOF
EV-to-EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

ZTE EV-to-EBIT Calculation

ZTE's EV-to-EBIT for today is calculated as:

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=27828.719/1148.119
=24.24

ZTE's current Enterprise Value is $27,829 Mil.
ZTE's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,148 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.

Frequently Asked Questions Learn more about EV-to-EBIT →
What does a EV-to-EBIT of 24.24 mean?
ZTE (ZTCOF) has a EV-to-EBIT of 24.24 as of Jul. 23, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on ZTE and its competitors. This is 55% above median its historical median of 15.64. According to the industry distribution chart, ZTE ranks #885 out of 1769 companies in the Hardware industry, placing it in the top 50%.
Is ZTE's EV-to-EBIT too high?
ZTE's current EV-to-EBIT of 24.24 is 55% above median its 10-year median of 15.64. The Hardware industry median EV-to-EBIT is 20.94. ZTE's value of 24.24 is 15.8% above this industry median. Based on the distribution chart, ZTE ranks #885 out of 1769 companies in the Hardware industry, which is above the industry midpoint. Overall, ZTE has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does ZTE's EV-to-EBIT compare to CSCO and CIEN?
According to the Hardware industry distribution chart, ZTE ranks #885 out of 1769 companies for EV-to-EBIT. This puts ZTE in the upper half of its industry. The industry median EV-to-EBIT is 20.94. ZTE's value of 24.24 is 15.8% above this benchmark. While the company's 10-year median is 15.64 vs. the industry median of 20.94, ZTE has consistently been above the industry average. 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 Hardware company?
The median EV-to-EBIT among Hardware companies is 20.94, based on 1,769 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. ZTE's current EV-to-EBIT of 24.24 is 15.8% 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 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 ZTE and its competitors. For the Hardware industry, the median EV-to-EBIT is 20.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ZTE's current EV-to-EBIT is 24.24, which is 55% above median its own 10-year median of 15.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ZTE stock overvalued right now?
Based on GuruFocus' analysis, ZTE (ZTCOF) is currently considered Fairly Valued. The stock's GF Value™ is $3.12, compared to a current price of $2.99 — trading 4.3% below its estimated fair value. The current EV-to-EBIT is 24.24, which is 55% above median its 10-year median of 15.64 and 15.8% above the Hardware industry median of 20.94. ZTE's overall GF Score™ is 83/100 with 5 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 ZTE (ZTCOF), the current EV-to-EBIT is 24.24 as of Jul. 23, 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 ZTE (ZTCOF) Overvalued in 2026?

Based on GuruFocus' analysis, ZTE stock appears to be undervalued. The current stock price of $2.99 is trading 4.3% below its estimated GF Value™ of $3.12. GuruFocus considers ZTE to be Fairly Valued.

Key valuation signals for ZTCOF:

  • EV-to-EBIT: 24.24 (55% above median its 10-year median of 15.64)
  • GF Value™: $3.12 vs. price of $2.99 (4.3% below fair value)
  • GF Score™: 83/100 with 5 warning signs
  • Industry Position: 15.8% above the Hardware median (#885 of 1769)

No single metric tells the full story. See the ZTCOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


ZTE Business Description

Address ZTE Plaza, Keji Road South, Hi-Tech Industrial Park, Nanshan District, Guangdong Province, Shenzhen, CHN, 518057
ZTE Corp is a provider of integrated telecommunications and IT solutions with a full range of end-to-end ICT products and solutions integrating design, development, production, sales, and services with a special focus on carriers networks, government and corporate business, and consumer business. It operates in three segments Carriers network, Consumer Business, and Government and Corporate Business. It generates a majority of its revenue from equipment supporting carriers' networks. It has a presence in the PRC, Asia, Africa, Europe, and the Americas. It generates the majority of its revenue from the PRC region.
83GF Score

Get the complete analysis for ZTCOF

EV-to-EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$2.99
Price
$3.12
GF Value