Zip Co (ZIP) Fair Value & Analysis
Financial Services · AU · Market cap A$3.7B
Fair value as of: Aug 13, 2026
From 9 valuation models · updated today
Share price −6.1% over the past month.
Below-average quality, and screening another 75% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case (A$0.7055). The favourable scenario is already priced in.
- Weak quality (27/100) and above fair value at the same time, the margin of safety is missing on both counts.
- For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.
How to read this chart
60‑month range A$0.2550 – A$8.78 · fair‑value band A$0.5355 – A$0.7055 · the A$2.77 price screens above the A$0.7055 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.
Analysis
Zip Co (ZIP) currently trades at A$2.77, while our model-based Fair Value estimate is A$0.7055, implying the stock looks roughly 74.5% overvalued today. The Quality Score stands at 27/100 (below-average quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, Zip Co generated revenue of A$1.2B at a net margin of 9.0%. Revenue grew 29.2% year over year. It earns a return on equity of 15.9%. Net debt stands at A$2.0B. Fundamentals as of Aug 13, 2026
Our scenario range runs from A$0.5355 (bear case) to A$0.7055 (bull case); at A$2.77, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 44% below its 52-week high and 101% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -45% fair-value upside, at -75%, ZIP screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 9 models by family
Widest divergence: Dividend Discount (A$9.20) versus Asset-Based (A$0.3800). Highest evidence: Residual Income (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 24 · Market factors (momentum, volatility) 28
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
Zip Co Limited engages in the provision of digital retail finance, personal finance, and payments solutions in Australia, New Zealand, and the United States. The company offers retail line of credit products and personal loans; retail installment products; and Buy Now Pay Later installment products to consumers.
Full company description
Zip Co Limited engages in the provision of digital retail finance, personal finance, and payments solutions in Australia, New Zealand, and the United States. The company offers retail line of credit products and personal loans; retail installment products; and Buy Now Pay Later installment products to consumers. It also provides unsecured loans through banking partners, as well as online and in-store; and access to point-of-sale credit; and digital payment services. The company was formerly known as ZipMoney Limited and changed its name to Zip Co Limited in December 2017. Zip Co Limited was incorporated in 2009 and is headquartered in Sydney, Australia.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Zip Co reported revenue of A$1.1B in FY2025 versus A$394M in FY2021, a compound +28.4%/yr. Reported net income was A$79.9M in FY2025.
ZIP screens 75% overvalued. Compare with Visa Inc →
Earlier news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Zip Research Reveals Two-Thirds of US Shoppers Turn to AI Before Making Purchase Decisions
- Zip US Partners with Rally House to Bring Flexible Payments to Sports Fans Nationwide
- Zip US Expands Partnership with Stripe to Bring Flexible Payments to Agentic Commerce Through Shared Payment Tokens
- Zip US and InComm Payments Bring Flexible Payments to Gift Cards, Giving Shoppers a New Way to Pay
Peer Group
Credit Services · 334 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Credit Services median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 40/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Credit Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Visa Inc V | $359.42 | $198.27 | -45% |
| Mastercard Incorporated MA | $561.44 | $221.87 | -60% |
| Bajaj Finance Limited BAJFINANCE | ₹1,094 | ₹397.61 | -64% |
| Shriram Finance Limited SHRIRAMFIN | ₹1,117 | ₹553.83 | -50% |
| Cholamandalam Investment and Finance Company CHOLAFIN | ₹1,918 | ₹796.52 | -58% |
| Tata Capital Limited TATACAP | ₹367.05 | ₹149.40 | -59% |
| Power Finance Corporation PFC | ₹376.50 | ₹615.85 | +64% |
| Muthoot Finance Limited MUTHOOTFIN | ₹2,876 | ₹3,429 | +19% |
| Indian Railway Finance Corporation IRFC | ₹88.35 | ₹69.72 | -21% |
| REC Limited RECLTD | ₹346.00 | ₹692.00 | +100% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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