ZIP share price in focus
Zip Co was founded in 2013 and is a financial technology company. It offers a buy-now-pay-later (BNPL) service that is popular among retail consumers.
Zip allows customers to purchase items immediately and repay them over interest-free instalments.
Zip operates on a global scale with over 79,300 retail partners and 6 million customers. In September 2020, Zip acquired US-based BNPL company Quadpay to further establish itself in the US market.
NWL shares
Founded in 1999, Netwealth is a wealth management business that provides a platform for financial planners to manage client money.
As of 2024, Netwealth has over 140,000 account holders on its platform and over $88 billion of funds under administration (FUA).
Netwealth’s big advantage is its scale and the user-friendly interface which can be accessed through its online platform. Through one simple dashboard, users can buy and sell investments, track performance, and view charts, reports and tax statements.
ZIP share price valuation
As a growth company, one way to put a broad projection on the ZIP share price could be to compare its price-to-sales multiple over time. Currently, Zip Co Ltd shares have a price-sales ratio of 3.84x, compared to its 5-year average of 5.81x, meaning its shares are trading below their historical average. This could mean that the share price has fallen, or sales have increased, or both. In the case of ZIP, revenue has been growing over the last 3 years. Please keep in mind that context is important – and this is just one valuation technique. Investment decisions can’t just be based on one metric.
The NWL share price currently trades at a price-sales ratio of 23.77x, which compares to its 5-year long-term average of 23.72x. So, its shares are trading higher than their historical average. However, a simple multiple like this should only be the start of your research. The Rask websites offer free online investing courses, created by analysts explaining things like Discounted Cash Flow (DCF) and Dividend Discount Models (DDM). They even include free valuation spreadsheets! Just remember there are many different ways to value a share, like Netwealth Group Ltd.
