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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Zip CoASX:ZIP -1.95%71 Intrinsic Value: Projected FCF is A$-0.78 as of Aug. 24, 2026. GuruFocus rates ASX:ZIP with a GF Score™ of 71/100 and a GF Value™ of A$2.73 (Fairly Valued). The stock has 5 warning signs investors should review. Among 312 Credit Services companies, Zip Co ranks worse than 320512.5% on this metric.
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
As of today (2026-08-24), Zip Co's Intrinsic Value: Projected FCF is A$-0.78. The stock price of Zip Co is A$2.52. Therefore, Zip Co's Price-to-Intrinsic-Value-Projected-FCF of today is 0.0.
The historical rank and industry rank for Zip Co's Intrinsic Value: Projected FCF or its related term are showing as below:
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Zip Co was 17.42. The lowest was 4.01. And the median was 12.45.
ASX:ZIP's Price-to-Projected-FCF is not ranked *
in the Credit Services industry.
Industry Median: 0.725 * Ranked among companies with meaningful Price-to-Projected-FCF only.
Zip Co (ASX:ZIP) Intrinsic Value: Projected FCF Explanation
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
Zip Co's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
Price-to-Intrinsic-Value-Projected-FCF
=
Share Price
/
Intrinsic Value: Projected FCF
=
2.52
/
-0.78082817871068
=
* 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 Intrinsic Value: Projected FCF Related Terms
Zip Co Intrinsic Value: Projected FCF Historical Data
* Premium members only.
The historical data trend for Zip Co's Intrinsic Value: Projected 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.
ASX:ZIP vs V, MA, AXP: Intrinsic Value: Projected FCF Comparison
For the Credit Services subindustry, Zip Co's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-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 Price-to-Projected-FCF vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Zip Co's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where Zip Co's Price-to-Projected-FCF falls into.
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
* 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.
What does a Intrinsic Value: Projected FCF of A$-0.78 mean?
Zip Co (ASX:ZIP) has a Intrinsic Value: Projected FCF of A$-0.78 as of Aug. 24, 2026. Intrinsic Value: Projected FCF is the stock value based on a projected free cash flow model. View historical data on Zip Co and its competitors. According to the industry distribution chart, Zip Co ranks #999999 out of 312 companies in the Credit Services industry.
Is Zip Co's Intrinsic Value: Projected FCF too high?
Zip Co's current Intrinsic Value: Projected FCF is A$-0.78. Based on the distribution chart, Zip Co ranks #999999 out of 312 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Zip Co has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Zip Co's Intrinsic Value: Projected FCF compare to V and MA?
According to the Credit Services industry distribution chart, Zip Co ranks #999999 out of 312 companies for Intrinsic Value: Projected FCF. This places Zip Co in the lower half of its industry. The industry median Intrinsic Value: Projected FCF is 0.73. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Intrinsic Value: Projected FCF for a Credit Services company?
The median Intrinsic Value: Projected FCF among Credit Services companies is 0.73, based on 312 companies in the industry. Companies in the top quartile (top 25%) have a Intrinsic Value: Projected FCF significantly above this median, while those in the bottom quartile fall well below. However, Intrinsic Value: Projected 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 Intrinsic Value: Projected FCF mean?
A high Intrinsic Value: Projected FCF can signal that a stock is expensive relative to its fundamentals. Intrinsic Value: Projected FCF is the stock value based on a projected free cash flow model. View historical data on Zip Co and its competitors. For the Credit Services industry, the median Intrinsic Value: Projected FCF is 0.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zip Co's current Intrinsic Value: Projected FCF is A$-0.78. 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 Fairly Valued. The stock's GF Value™ is A$2.73, compared to a current price of A$2.52 — trading 7.7% below its estimated fair value. The current Intrinsic Value: Projected FCF is A$-0.78. Zip Co's overall GF Score™ is 71/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Intrinsic Value: Projected FCF calculated?
Intrinsic Value: Projected FCF is calculated from a company's financial statements. For Zip Co (ASX:ZIP), the current Intrinsic Value: Projected FCF is A$-0.78 as of Aug. 24, 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 undervalued.
The current stock price of A$2.52 is trading 7.7% below its estimated GF Value™ of A$2.73.
GuruFocus considers Zip Co to be Fairly Valued.
Key valuation signals for ASX:ZIP:
Intrinsic Value: Projected FCF: A$-0.78
GF Value™: A$2.73 vs. price of A$2.52 (7.7% below 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.
71GF Score
Get the complete analysis for ASX:ZIP
Intrinsic Value: Projected FCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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