Zai Lab (FRA:1ZL) Moat Score: 6/10 (As of Jul. 15, 2026)

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FRA:1ZL Zai Lab Ltd FRA:1ZL
64 GF Score
Price €16.70
GF Value €26.14
Valuation Possible Value Trap
! 7 Warning Signs
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What is Zai Lab Moat Score?

Zai Lab FRA:1ZL -3.47% 64 Moat Score is 6 as of Jul. 15, 2026. GuruFocus rates FRA:1ZL with a GF Score™ of 64/100 and a GF Value™ of €26.14 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,396 Biotechnology companies, Zai Lab ranks better than 98.93% on this metric.

Zai Lab has the Moat Score of 6, which implies that the company might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Zai Lab has Narrow Moat: Zai Lab Ltd has a strong narrow moat due to its valuable intellectual property and robust R&D capabilities in the pharmaceutical sector. The company benefits from regulatory barriers and exclusive licenses, but lacks the market dominance and brand strength required for a wide moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Zai Lab might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Zai Lab  (FRA:1ZL) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Zai Lab Moat Score Related Terms

FRA:1ZL vs STOK, ADMA, VRDN: Moat Score Comparison

For the Biotechnology subindustry, Zai Lab's Moat Score, along with its competitors' market caps and Moat Score 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.

Zai Lab Moat Score vs Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Zai Lab's Moat Score distribution charts can be found below:

* The bar in red indicates where Zai Lab's Moat Score falls into.


FRA:1ZL
64GF Score
Zai Lab Ltd FRA:1ZL
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 6 mean?
Zai Lab (FRA:1ZL) has a Moat Score of 6 as of Jul. 15, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Zai Lab ranks #15 out of 1396 companies in the Biotechnology industry, placing it in the top 1.1%.
Is Zai Lab's Moat Score too high?
Zai Lab's current Moat Score is 6. The Biotechnology industry median Moat Score is 2.00. Zai Lab's value of 6 is 200% above this industry median. Based on the distribution chart, Zai Lab ranks #15 out of 1396 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Zai Lab has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zai Lab's Moat Score compare to STOK and ADMA?
According to the Biotechnology industry distribution chart, Zai Lab ranks #15 out of 1396 companies for Moat Score. This places Zai Lab in the top 1% of its industry — outperforming the majority of peers. The industry median Moat Score is 2.00. Zai Lab's value of 6 is 200% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Biotechnology company?
The median Moat Score among Biotechnology companies is 2.00, based on 1,396 companies in the industry. Companies in the top quartile (top 25%) have a Moat Score significantly above this median, while those in the bottom quartile fall well below. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zai Lab's current Moat Score of 6 is 200% 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. For the Biotechnology industry, the median Moat Score is 2.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zai Lab's current Moat Score is 6. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zai Lab stock overvalued right now?
Based on GuruFocus' analysis, Zai Lab (FRA:1ZL) is currently considered Possible Value Trap. The stock's GF Value™ is €26.14, compared to a current price of €16.70 — trading 36.1% below its estimated fair value. The current Moat Score is 6 and 200% above the Biotechnology industry median of 2.00. Zai Lab's overall GF Score™ is 64/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Zai Lab (FRA:1ZL), the current Moat Score is 6 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 Zai Lab (FRA:1ZL) Overvalued in 2026?

Based on GuruFocus' analysis, Zai Lab stock appears to be undervalued. The current stock price of €16.70 is trading 36.1% below its estimated GF Value™ of €26.14. GuruFocus considers Zai Lab to be Possible Value Trap.

Key valuation signals for FRA:1ZL:

  • Moat Score: 6
  • GF Value™: €26.14 vs. price of €16.70 (36.1% below fair value)
  • GF Score™: 64/100 with 7 warning signs
  • Industry Position: 200% above the Biotechnology median (#15 of 1396)

No single metric tells the full story. See the FRA:1ZL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Zai Lab Business Description

Address 899 Halei Road, Building B, Pudong, Shanghai, CHN, 201203
Zai Lab Ltd is a biopharmaceutical company focusing on discovering or licensing, developing, and commercializing proprietary therapeutics that address areas of unmet medical need including in the fields of oncology, autoimmune and infectious diseases. Zai Lab has a diverse pipeline of potentially first-in-class product candidates developed through in-house R&D and global partnerships. The company has successfully commercialized several products in China, including Zejula, Optune, Qinlock, and Nuzyra, with plans for further expansion The pipeline of proprietary drug candidates of the company includes ZL-1222, ZL-1311, ZL-6201 and many others.
64GF Score

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

€16.70
Price
€26.14
GF Value