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Zip CoASX:ZIP -1.88%62 EV-to-EBITDA is 15.76 as of Jul. 16, 2026. GuruFocus rates ASX:ZIP with a GF Score™ of 62/100 and a GF Value™ of A$2.09 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 324 Credit Services companies, Zip Co ranks better than 58.33% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Zip Co's enterprise value is A$6,352 Mil.
Zip Co's EBITDA for the trailing twelve months (TTM) ended in Dec. 2025 was A$403 Mil. Therefore, Zip Co's EV-to-EBITDA for today is 15.76.
The historical rank and industry rank for Zip Co's EV-to-EBITDA or its related term are showing as below:
ASX:ZIP'
s EV-to-EBITDA Range Over the Past 10 Years
Min: -360.56 Med: -3.42 Max: 193.1
Current: 15.76
During the past 13 years, the highest EV-to-EBITDA of Zip Co was 193.10. The lowest was -360.56. And the median was -3.42.
ASX:ZIP's EV-to-EBITDA is ranked better than 58.33% of 324
companies
in the Credit Services industry
Industry Median: 22.15
vs ASX:ZIP: 15.76
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
As of today (2026-07-16), Zip Co's stock price is A$3.14.
Zip Co's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 was A$0.083. Therefore, Zip Co's PE Ratio (TTM) for today is 37.83.
The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).
Zip Co (ASX:ZIP) EV-to-EBITDA Explanation
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Zip Co's share price for today is A$3.14.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Zip Co's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 was A$0.083.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for Zip Co's EV-to-EBITDA 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-EBITDA, along with its competitors' market caps and EV-to-EBITDA 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-EBITDA vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Zip Co's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Zip Co's EV-to-EBITDA falls into.
Zip Co's current Enterprise Value is A$6,352 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Zip Co's EBITDA for the trailing twelve months (TTM) ended in Dec. 2025 was A$403 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-EBITDA of 15.76 as of Jul. 16, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Zip Co. According to the industry distribution chart, Zip Co ranks #135 out of 324 companies in the Credit Services industry, placing it in the top 41.7%.
Is Zip Co's EV-to-EBITDA too high?
Zip Co's current EV-to-EBITDA is 15.76. The Credit Services industry median EV-to-EBITDA is 22.15. Zip Co's value of 15.76 is 28.8% below this industry median. Based on the distribution chart, Zip Co ranks #135 out of 324 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 EV-to-EBITDA compare to V and MA?
According to the Credit Services industry distribution chart, Zip Co ranks #135 out of 324 companies for EV-to-EBITDA. This puts Zip Co in the upper half of its industry. The industry median EV-to-EBITDA is 22.15. Zip Co's value of 15.76 is 28.8% 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-EBITDA for a Credit Services company?
The median EV-to-EBITDA among Credit Services companies is 22.15, based on 324 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zip Co's current EV-to-EBITDA of 15.76 is 28.8% 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-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Zip Co. For the Credit Services industry, the median EV-to-EBITDA is 22.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zip Co's current EV-to-EBITDA is 15.76. 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$3.14 — trading 50.2% above its estimated fair value. The current EV-to-EBITDA is 15.76 and 28.8% below the Credit Services industry median of 22.15. 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 EV-to-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Zip Co (ASX:ZIP), the current EV-to-EBITDA is 15.76 as of Jul. 16, 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$3.14 is trading 50.2% 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-EBITDA: 15.76
GF Value™: A$2.09 vs. price of A$3.14 (50.2% above fair value)
Industry Position: 28.8% below the Credit Services median (#135 of 324)
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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