The Zip Co Ltd (ASX: Z1P) share price is soaring today despite no notable recent news from the company. Shares in the buy now, pay later (BNPL) provider have smashed the record yet again, this time posting a high of $12.39 this afternoon.
At the time of writing, the Zip share price is trading 13.16% higher at $12.26.
Why is the Zip share price flying?
With no new news today, could the Zip share price still be lifting off the momentum of the company's most recent quarterly report? Since the report was released on January 21, the share price is up a whopping 66.4%.
And according to the Australian Financial Review (AFR), last week's best-performing stock on the S&P/ASX 200 Index (ASX: XJO) is also exciting investors over the prospect of a second listing on US markets.
Valuation push
In late January, Zip cofounder Peter Gray labelled its December quarter result "absolutely cracking" and questioned investors' reluctance to value it on similar multiples to rivals Affirm Holdings Inc, Afterpay Ltd (ASX: APT) and Sezzle Inc (ASX: SZL), as reported by the AFR.
Mr Gray told the AFR:
Our view would be on the revenue multiples, we're significantly undervalued when directly compared to Afterpay and obviously Affirm.
To this point, Zip currently sits at a share price of $13.16, giving it a market capitalisation of $6.77 billion. In contrast, Afterpay sits at $154.49 with a market cap of $44.08 billion, almost 7 times that of its smaller counterpart.
However, in regards to its total transaction value, Afterpay boasts $4.1 billion against Zip's $1.6 billion – a difference of 2.56 times.
About the Zip Share price
The Zip share price is currently trading strongly higher, continuing the company's remarkable recent run. Shares in the company are now up 118% for the year, easily outpacing the S&P/ASX 200 Index (ASX: XJO).
On that front, Zip is the 4th best performer on the index with a return of 215.72% for the past 12 months. Coming in behind Afterpay at 290.7%, Kogan.com Ltd (ASX: KGN) at 242.25%, and Pointsbet Holdings Ltd (ASX: PBH) at 223.98%.
