Assessing Zip Co (ASX:ZIP) Valuation After A$50m Buyback And Upgraded 2026 Margin Guidance

Simply Wall St.

Feb 27

Zip Co (ASX:ZIP) has put a A$50 million on-market share buyback in place, covering up to 92,161,082 shares (7.25% of its issued capital) and running through to March 2027. See our latest analysis for ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www.itiger.com/news/2614008229"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2614008229\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2614008229?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/7121000-choice1-main-header/1585186619635","is_english":true,"pubTime":"2026-02-27 04:38","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2614008229","market":"us","top_or_hot":-1,"title":"Assessing Zip Co (ASX:ZIP) Valuation After A$50m Buyback And Upgraded 2026 Margin Guidance","media":"Simply Wall St.","content":"<div>\n<p>Zip Co (ASX:ZIP) has put a A$50 million on-market share buyback in place, covering up to 92,161,082 shares (7.25% of its issued capital) and running through to March 2027. See our latest analysis for ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/diversified-financials/asx-zip/zip-co-shares/news/assessing-zip-co-asxzip-valuation-after-a50m-buyback-and-upg\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Assessing Zip Co (ASX:ZIP) Valuation After A$50m Buyback And Upgraded 2026 Margin Guidance</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAssessing Zip Co (ASX:ZIP) Valuation After A$50m Buyback And Upgraded 2026 Margin Guidance\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-27 04:38 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/au/diversified-financials/asx-zip/zip-co-shares/news/assessing-zip-co-asxzip-valuation-after-a50m-buyback-and-upg><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Zip Co (ASX:ZIP) has put a A$50 million on-market share buyback in place, covering up to 92,161,082 shares (7.25% of its issued capital) and running through to March 2027. See our latest analysis for ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/diversified-financials/asx-zip/zip-co-shares/news/assessing-zip-co-asxzip-valuation-after-a50m-buyback-and-upg\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ZIP.AU","symbol_name":"Zip Co Ltd","start_time":0,"source_url":"https://simplywall.st/stocks/au/diversified-financials/asx-zip/zip-co-shares/news/assessing-zip-co-asxzip-valuation-after-a50m-buyback-and-upg","article_id":"2614008229","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/7121000-choice1-main-header/1585186619635"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/au/diversified-financials/asx-zip/zip-co-shares/news/assessing-zip-co-asxzip-valuation-after-a50m-buyback-and-upg","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2614008229","pubTimestamp":1772138304,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Zip Co (ASX:ZIP) has put a A$50 million on-market share buyback in place, covering up to 92,161,082 shares (7.25% of its issued capital) and running through to March 2027.\nSee our latest analysis for Zip Co.\nThat buyback sits against a mixed price picture, with a 1 day share price return of 5.43% at A$1.845 but a 30 day share price return of 38.29% and year to date share price return of 44.93% declines, while the 3 year total shareholder return of about 2.5x still points to earlier momentum...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["rate"],"viewcount":null,"language":"en","relate_stocks":{"ZIP.AU":"Zip Co Ltd","ZIP":"ZipRecruiter Inc."},"translate_title":"评估Zip Co(ASX：ZIP)回购5000万美元后的估值并升级2026年利润率指引","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ZIP.AU":1.5,"ZIP":1.5},"content_text":"Zip Co (ASX:ZIP) has put a A$50 million on-market share buyback in place, covering up to 92,161,082 shares (7.25% of its issued capital) and running through to March 2027. See our latest analysis for Zip Co. That buyback sits against a mixed price picture, with a 1 day share price return of 5.43% at A$1.845 but a 30 day share price return of 38.29% and year to date share price return of 44.93% declines, while the 3 year total shareholder return of about 2.5x still points to earlier momentum that has since cooled. If Zip Co’s recent swings have you thinking about where else growth stories could emerge, it might be worth checking out 2 top founder-led companies as a curated set of potential ideas beyond BNPL. With a new A$50 million buyback, upgraded 2026 margin guidance and a share price that has seen sharp recent declines, the key question is whether Zip Co is now undervalued or if the market is already pricing in future growth. AdvertisementMost Popular Narrative: 63.5% Undervalued Compared with Zip Co’s last close at A$1.845, the most followed narrative points to a fair value of A$5.05, using an 8.79% discount rate and an earnings led view of the business.  Scaling distribution through partnerships and embedded finance with major merchants and platforms (such as Google Pay, Stripe, and large retailers in key verticals) is decreasing customer acquisition costs and increasing take rates, which should drive further operating leverage and higher earnings.  Read the complete narrative. Want to see why this narrative leans so heavily on future earnings power and margins rather than today’s share price moves? The story hinges on compounding revenue, thicker profit margins and a richer earnings multiple all working together. Curious which specific growth and profitability assumptions have to hold for that A$5.05 fair value to stack up? Result: Fair Value of A$5.05 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this depends on regulatory settings remaining manageable and on credit losses not increasing as Zip Co expands into new products and geographies. Find out about the key risks to this Zip Co narrative. Another Lens On Value: Earnings Multiple Check Those A$5.05 fair value and DCF style narratives suggest upside, but the current A$1.845 share price already sits on a P/E of 21.5x versus about 10.7x for local peers and 11.7x for the wider Global Consumer Finance group. The fair ratio sits higher at 27.1x, which hints at possible room to re rate, but also a clear risk that expectations are already punchy. Which side of that gap do you think the market leans toward over time? See what the numbers say about this price — find out in our valuation breakdown. ASX:ZIP P/E Ratio as at Feb 2026Next Steps Mixed signals on value and sentiment so far? For a clearer view, take a look at the full balance of 4 key rewards and 2 important warning signs and decide for yourself. Looking for more investment ideas? If you are weighing up what to do next after Zip Co, it makes sense to line up a few more quality ideas before the market moves on without you.  Zero in on quality at a discount by scanning our 9 high quality undervalued stocks to see which companies currently trade below their assessed worth with solid fundamentals. Build a sturdier core for your portfolio by checking the solid balance sheet and fundamentals stocks screener (17 results) and focusing on businesses with cleaner debt profiles and stronger financial footing. Get ahead of the crowd by searching the screener containing 11 high quality undiscovered gems, where we surface lesser known names that still pass strict fundamentals checks.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Zip Co might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"shareholding,dataReport","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}