Zip Co Limited

DB:YRRA Stock Report

Market Cap: €2.6b

Zip Co Valuation

Is YRRA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of YRRA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: YRRA (€1.95) is trading above our estimate of fair value (€0.92)

Significantly Below Fair Value: YRRA is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for YRRA?

Key metric: As YRRA is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for YRRA. This is calculated by dividing YRRA's market cap by their current revenue.
What is YRRA's PS Ratio?
PS Ratio4.8x
SalesAU$867.98m
Market CapAU$4.19b

Price to Sales Ratio vs Peers

How does YRRA's PS Ratio compare to its peers?

The above table shows the PS ratio for YRRA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.2x
OT8 Eleving Group
1.1x6.4%€190.9m
E4I Multitude
0.9x24.0%€104.6m
FTK flatexDEGIRO
3.3x6.1%€1.4b
HYQ Hypoport
3.4x11.5%€1.4b
YRRA Zip Co
4.8x5.9%€4.2b

Price-To-Sales vs Peers: YRRA is expensive based on its Price-To-Sales Ratio (4.8x) compared to the peer average (2.2x).

Price to Sales Ratio vs Industry

How does YRRA's PS Ratio compare vs other companies in the European Consumer Finance Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
YRRA 4.8xIndustry Avg. 1.7xNo. of Companies6PS01.63.24.86.48+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: YRRA is expensive based on its Price-To-Sales Ratio (4.8x) compared to the European Consumer Finance industry average (1.7x).

Price to Sales Ratio vs Fair Ratio

What is YRRA's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

YRRA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4.8x
Fair PS Ratio4x

Price-To-Sales vs Fair Ratio: YRRA is expensive based on its Price-To-Sales Ratio (4.8x) compared to the estimated Fair Price-To-Sales Ratio (4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst YRRA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€1.95
€1.98
+1.7%
31.7%€2.34€0.25n/a9
Nov ’25€1.76
€1.83
+4.0%
38.1%€2.30€0.24n/a9
Oct ’25€1.76
€1.23
-30.2%
34.3%€1.72€0.24n/a9
Sep ’25€1.44
€1.23
-14.7%
34.3%€1.72€0.24n/a9
Aug ’25€1.19
€1.02
-14.3%
29.5%€1.20€0.25n/a9
Jul ’25€0.86
€0.74
-14.7%
29.1%€0.94€0.24n/a8
Jun ’25€0.68
€0.74
+9.3%
29.1%€0.94€0.24n/a8
May ’25€0.73
€0.74
+0.4%
29.1%€0.94€0.24n/a8
Apr ’25€0.82
€0.64
-22.1%
31.1%€0.86€0.24n/a8
Mar ’25€0.58
€0.41
-29.9%
36.5%€0.65€0.22n/a8
Feb ’25€0.43
€0.37
-15.2%
40.1%€0.58€0.22n/a7
Jan ’25€0.38
€0.26
-31.1%
12.5%€0.31€0.22n/a7
Dec ’24€0.24
€0.25
+7.5%
10.9%€0.30€0.21n/a7
Nov ’24€0.17
€0.26
+59.3%
10.9%€0.30€0.22€1.769
Oct ’24€0.16
€0.27
+72.4%
11.5%€0.31€0.22€1.768
Sep ’24€0.18
€0.36
+102.3%
73.7%€1.11€0.21€1.449
Aug ’24€0.28
€0.41
+48.4%
62.8%€1.15€0.27€1.1910
Jul ’24€0.24
€0.41
+75.0%
61.3%€1.15€0.26€0.8610
Jun ’24€0.30
€0.50
+66.0%
66.2%€1.24€0.28€0.6811
May ’24€0.30
€0.49
+65.8%
66.1%€1.22€0.27€0.7311
Apr ’24€0.34
€0.49
+45.8%
65.9%€1.24€0.26€0.8212
Mar ’24€0.32
€0.52
+59.0%
63.7%€1.28€0.27€0.5812
Feb ’24€0.41
€0.56
+37.3%
58.6%€1.35€0.27€0.4312
Jan ’24€0.32
€0.56
+76.2%
60.9%€1.41€0.26€0.3812
Dec ’23€0.46
€0.61
+31.8%
57.8%€1.45€0.27€0.2412
Nov ’23€0.41
€0.61
+51.1%
59.3%€1.44€0.27€0.1712

Analyst Forecast: Target price is less than 20% higher than the current share price.

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