Update shared on18 Sep 2025
Fair value Increased 1.73%Zillow Group’s analyst price target has increased to $88.46, reflecting confidence in sustained mid-teens revenue growth, robust expansion in Rentals and Showcase, strong EBITDA compounding, and anticipated benefits from a lower rate environment.
Analyst Commentary
- Execution of mid-teens revenue growth, with Rentals and Showcase segments emerging as primary growth drivers.
- Expectation of positive operating leverage, potentially exceeding consensus, particularly in 2027 and 2028.
- Projection for EBITDA to compound at a 25%-30% annual rate.
- Anticipation of continued mid-teens revenue growth through the medium term.
- Expected benefit to Zillow from a lower interest rate environment.
What's in the News
- Compass has filed an antitrust lawsuit against Zillow, alleging that Zillow uses exclusionary policies and conspires with competitors to protect its monopoly and stifle innovation in the real estate search market (Periodicals, 2025-06-23).
- Zillow launched "Virtual Staging," an AI-powered feature within its premium Showcase listing experience, allowing users to visualize rooms in various styles, building on its acquisition of Virtual Staging AI and reflecting deepening AI integration across its platform (Key Developments, 2025-09-10).
- A new partnership with Berkshire Hathaway HomeServices extends Showcase’s reach, giving thousands of agents access to premium technology, data-driven listing analytics, and immersive media features to better market and differentiate their listings (Key Developments, 2025-08-26).
- Zillow raised its earnings guidance for full-year 2025, now expecting mid-teens revenue growth at the higher end of prior forecasts, and projected Q3 2025 revenue to rise 14–16% year-over-year; the company also completed a significant share buyback, repurchasing $149.98 million of stock in Q2 (Key Developments, 2025-08-06).
- Zillow’s recent product releases include SkyTour (an interactive, drone-like 3D home exterior view), Offer Insights (an offer-strength analytical tool), detailed rental cost breakdowns, and tour itinerary management, enhancing transparency and streamlining the home shopping experience for buyers and renters (Key Developments, 2025-07-15, 2025-09-10).
Valuation Changes
Summary of Valuation Changes for Zillow Group
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $86.96 to $88.46.
- The Future P/E for Zillow Group remained effectively unchanged, moving only marginally from 71.85x to 73.09x.
- The Discount Rate for Zillow Group remained effectively unchanged, moving only marginally from 8.31% to 8.42%.
Disclaimer
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