Zip CoASX:ZIP +3.51%62 EV-to-FCF is -226.28 as of Jul. 01, 2026. 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 265 Credit Services companies, Zip Co ranks worse than 377358.11% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Zip Co's Enterprise Value is A$6,429 Mil.
Zip Co's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2025 was A$-28 Mil. Therefore, Zip Co's EV-to-FCF for today is -226.28.
The historical rank and industry rank for Zip Co's EV-to-FCF or its related term are showing as below:
ASX:ZIP'
s EV-to-FCF Range Over the Past 10 Years
Min: -1174.47 Med: -20.6 Max: 196.89
Current: -210.39
During the past 13 years, the highest EV-to-FCF of Zip Co was 196.89. The lowest was -1174.47. And the median was -20.60.
ASX:ZIP's EV-to-FCF is ranked worse than 100% of 265
companies
in the Credit Services industry
Industry Median: 12.99
vs ASX:ZIP: -210.39
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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.
As of today (2026-07-01), Zip Co's stock price is A$3.24.
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 39.04.
Zip Co (ASX:ZIP) EV-to-FCF Explanation
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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$3.24.
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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Zip Co EV-to-FCF Related Terms
Zip Co EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Zip Co's EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Zip Co's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Zip Co's EV-to-FCF falls into.
Zip Co's current Enterprise Value is A$6,429 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Zip Co's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2025 was A$-28 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-FCF of -226.28 as of Jul. 01, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Zip Co and its competitors. According to the industry distribution chart, Zip Co ranks #999999 out of 265 companies in the Credit Services industry.
Is Zip Co's EV-to-FCF too high?
Zip Co's current EV-to-FCF is -226.28. Based on the distribution chart, Zip Co ranks #999999 out of 265 companies in the Credit Services industry, which is in the bottom quartile relative to peers. 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-FCF compare to V and MA?
According to the Credit Services industry distribution chart, Zip Co ranks #999999 out of 265 companies for EV-to-FCF. This places Zip Co in the lower half of its industry. The industry median EV-to-FCF is 12.99. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-FCF for a Credit Services company?
The median EV-to-FCF among Credit Services companies is 12.99, based on 265 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF 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 EV-to-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Zip Co and its competitors. For the Credit Services industry, the median EV-to-FCF is 12.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zip Co's current EV-to-FCF is -226.28. 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 EV-to-FCF is -226.28. 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-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Zip Co (ASX:ZIP), the current EV-to-FCF is -226.28 as of Jul. 01, 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$3.24 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:
EV-to-FCF: -226.28
GF Value™: A$2.07 vs. price of A$3.24 (56.5% 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.
62GF Score
Get the complete analysis for ASX:ZIP
EV-to-FCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:ZIP has been successfully added to your 
