Zai LabZLAB +3.15%64 Net-Net Working Capital is $2.80 as of Mar. 2026. GuruFocus rates ZLAB with a GF Score™ of 64/100 and a GF Value™ of $30.30 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 862 Biotechnology companies, Zai Lab ranks worse than 57.31% on this metric.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Zai Lab's Net-Net Working Capital for the quarter that ended in Mar. 2026 was $2.80.
The industry rank for Zai Lab's Net-Net Working Capital or its related term are showing as below:
ZLAB's Price-to-Net-Net-Working-Capital is ranked worse than 57.31% of 862
companies
in the Biotechnology industry
Industry Median: 5.395
vs ZLAB: 6.78
Zai Lab (NAS:ZLAB) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Zai Lab Net-Net Working Capital Related Terms
Zai Lab Net-Net Working Capital Historical Data
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The historical data trend for Zai Lab's Net-Net Working Capital 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.
ZLAB vs STOK, ADMA, VRDN: Net-Net Working Capital Comparison
For the Biotechnology subindustry, Zai Lab's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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 Price-to-Net-Net-Working-Capital vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Zai Lab's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Zai Lab's Price-to-Net-Net-Working-Capital falls into.
* 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $2.80 mean?
Zai Lab (ZLAB) has a Net-Net Working Capital of $2.80 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Zai Lab According to the industry distribution chart, Zai Lab ranks #494 out of 862 companies in the Biotechnology industry, placing it in the top 57.3%.
Is Zai Lab's Net-Net Working Capital too high?
Zai Lab's current Net-Net Working Capital is $2.80. The Biotechnology industry median Net-Net Working Capital is 5.40. Zai Lab's value of $2.80 is 48.1% below this industry median. Based on the distribution chart, Zai Lab ranks #494 out of 862 companies in the Biotechnology industry, which is below the industry midpoint. 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 Net-Net Working Capital compare to STOK and ADMA?
According to the Biotechnology industry distribution chart, Zai Lab ranks #494 out of 862 companies for Net-Net Working Capital. This places Zai Lab in the lower half of its industry. The industry median Net-Net Working Capital is 5.40. Zai Lab's value of $2.80 is 48.1% 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 Net-Net Working Capital for a Biotechnology company?
The median Net-Net Working Capital among Biotechnology companies is 5.40, based on 862 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zai Lab's current Net-Net Working Capital of $2.80 is 48.1% 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 Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Zai Lab For the Biotechnology industry, the median Net-Net Working Capital is 5.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zai Lab's current Net-Net Working Capital is $2.80. 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 (ZLAB) is currently considered Possible Value Trap. The stock's GF Value™ is $30.30, compared to a current price of $18.99 — trading 37.3% below its estimated fair value. The current Net-Net Working Capital is $2.80 and 48.1% below the Biotechnology industry median of 5.40. Zai Lab's overall GF Score™ is 64/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Zai Lab (ZLAB), the current Net-Net Working Capital is $2.80 as of Mar. 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 (ZLAB) Overvalued in 2026?
Based on GuruFocus' analysis, Zai Lab stock appears to be undervalued.
The current stock price of $18.99 is trading 37.3% below its estimated GF Value™ of $30.30.
GuruFocus considers Zai Lab to be Possible Value Trap.
Key valuation signals for ZLAB:
Net-Net Working Capital: $2.80
GF Value™: $30.30 vs. price of $18.99 (37.3% below fair value)
Industry Position: 48.1% below the Biotechnology median (#494 of 862)
No single metric tells the full story. See the ZLAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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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