Zillow Group Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 Z when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Z ($83.77) is trading below our estimate of fair value ($93.83)

Significantly Below Fair Value: Z is trading below fair value, but not by a significant amount.


Key Valuation Metric

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

Key metric: As Z is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for Z. This is calculated by dividing Z's market cap by their current revenue.
What is Z's PS Ratio?
PS Ratio8.8x
SalesUS$2.16b
Market CapUS$19.38b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for Z vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4x
BEKE KE Holdings
2x11.3%US$23.3b
JLL Jones Lang LaSalle
0.6x6.4%US$12.5b
CSGP CoStar Group
12.3x13.4%US$32.7b
CBRE CBRE Group
1.2x8.7%US$40.7b
Z Zillow Group
8.8x11.9%US$19.4b

Price-To-Sales vs Peers: Z is expensive based on its Price-To-Sales Ratio (8.8x) compared to the peer average (4x).


Price to Sales Ratio vs Industry

How does Z's PS Ratio compare vs other companies in the US Real Estate Industry?

31 CompaniesPrice / SalesEstimated GrowthMarket Cap
JLL Jones Lang LaSalle
0.6x6.4%US$12.49b
COMP Compass
0.7x11.5%US$3.49b
CWK Cushman & Wakefield
0.4x5.6%US$3.31b
EXPI eXp World Holdings
0.5x5.7%US$2.16b
Z 8.8xIndustry Avg. 2.3xNo. of Companies31PS03.67.210.814.418+
31 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: Z is expensive based on its Price-To-Sales Ratio (8.8x) compared to the US Real Estate industry average (2.3x).


Price to Sales Ratio vs Fair Ratio

What is Z'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.

Z PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio8.8x
Fair PS Ratio4.3x

Price-To-Sales vs Fair Ratio: Z is expensive based on its Price-To-Sales Ratio (8.8x) compared to the estimated Fair Price-To-Sales Ratio (4.3x).


Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.


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