(ZG) Zillow - Overview
Sector: Communication Services | Industry: Internet Content & Information | Exchange: NASDAQ (USA) | Market Cap: 8.438m USD | Total Return: -44% in 12m
Avg Turnover: 48.6M
EPS Trend: 87.9%
Qual. Beats: 1
Rev. Trend: 99.5%
Qual. Beats: 0
Warnings
P/E ratio 147.5
Altman Z'' -2.23 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
No distinct edge detected
Zillow Group, Inc. (NASDAQ: ZG) operates a leading digital real estate platform in the United States, facilitating connections between consumers, real estate agents, and mortgage professionals. The company’s business model is organized into four primary segments: Residential, Mortgages, Rentals, and Other. Revenue is generated through diverse streams including advertising services for agents (Premier Agent), software-as-a-service (SaaS) tools for transaction management, and direct mortgage originations via Zillow Home Loans.
The company maintains a dominant market position through a portfolio of recognized brands such as Trulia, StreetEasy, and HotPads. In the broader real estate technology sector, companies like Zillow are increasingly shifting toward super-app models that integrate the entire transaction lifecycle-from initial search and touring to financing and closing-into a single digital ecosystem. This strategy aims to capture higher margins by reducing friction in the historically fragmented residential real estate market.
Investors may find additional valuation metrics and historical performance data on ValueRay to support their analysis. Headquartered in Seattle and founded in 2004, Zillow continues to expand its technological footprint through the acquisition of industry tools like Follow Up Boss and ShowingTime to enhance agent productivity and lead conversion.
- Mortgage rate volatility directly impacts residential transaction volume and premier agent revenue
- Housing inventory levels dictate consumer traffic and lead generation for real estate agents
- Scaling Zillow Home Loans originations is critical for diversifying revenue beyond advertising
- NAR settlement 1commission changes create uncertainty for buyer agent lead generation business models
- Rental market demand and property manager advertising spend drive high-margin segment growth
| Net Income: 61.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 1.27 > 1.0 |
| NWC/Revenue: 34.72% < 20% (prev 55.49%; Δ -20.77% < -1%) |
| CFO/TA 0.09 > 3% & CFO 462.0m > Net Income 61.0m |
| Net Debt (-260.0m) to EBITDA (336.0m): -0.77 < 3 |
| Current Ratio: 2.29 > 1.5 & < 3 |
| Outstanding Shares: last quarter (239.6m) vs 12m ago -6.46% < -2% |
| Gross Margin: 73.34% > 18% (prev 0.76%; Δ 7.26k% > 0.5%) |
| Asset Turnover: 49.09% > 50% (prev 40.11%; Δ 8.97% > 0%) |
| Interest Coverage Ratio: 2.76 > 6 (EBITDA TTM 336.0m / Interest Expense TTM 17.0m) |
| A: 0.18 (Total Current Assets 1.66b - Total Current Liabilities 724.0m) / Total Assets 5.23b |
| B: -0.35 (Retained Earnings -1.81b / Total Assets 5.23b) |
| C: 0.01 (EBIT TTM 47.0m / Avg Total Assets 5.49b) |
| D: -2.22 (Book Value of Equity -1.81b / Total Liabilities 818.0m) |
| Altman-Z'' = -2.23 = D |
| DSRI: 1.34 (Receivables 180.0m/115.0m, Revenue 2.69b/2.31b) |
| GMI: 1.04 (GM 73.34% / 76.44%) |
| AQI: 1.09 (AQ_t 0.60 / AQ_t-1 0.55) |
| SGI: 1.17 (Revenue 2.69b / 2.31b) |
| TATA: -0.08 (NI 61.0m - CFO 462.0m) / TA 5.23b) |
| Beneish M = -2.61 (Cap -4..+1) = A |
As of May 26, 2026, the stock is trading at USD 36.88 with a total of 863,600 shares traded.
Over the past week, the price has changed by -3.10%,
over one month by -19.28%,
over three months by -18.82% and
over the past year by -44.04%.
Zillow has received a consensus analysts rating of 3.76. Therefore, it is recommended to hold ZG.
- StrongBuy: 9
- Buy: 5
- Hold: 14
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 64.8 | 75.7% |
P/E Trailing = 147.52
P/E Forward = 16.3934
P/S = 3.1334
P/B = 1.9153
P/EG = 0.92
Revenue TTM = 2.69b USD
EBIT TTM = 47.0m USD
EBITDA TTM = 336.0m USD
Long Term Debt = 80.0m USD (estimated: total debt 429.0m - short term 349.0m)
Short Term Debt = 349.0m USD (from shortTermDebt, last quarter)
Debt = 523.0m USD (from shortLongTermDebtTotal, last quarter) + Leases 94.0m
Net Debt = -260.0m USD (calculated: Debt 523.0m - CCE 783.0m)
Enterprise Value = 8.18b USD (8.44b + Debt 523.0m - CCE 783.0m)
Interest Coverage Ratio = 2.76 (Ebit TTM 47.0m / Interest Expense TTM 17.0m)
EV/FCF = 24.71x (Enterprise Value 8.18b / FCF TTM 331.0m)
FCF Yield = 4.05% (FCF TTM 331.0m / Enterprise Value 8.18b)
FCF Margin = 12.29% (FCF TTM 331.0m / Revenue TTM 2.69b)
Net Margin = 2.27% (Net Income TTM 61.0m / Revenue TTM 2.69b)
Gross Margin = 73.34% ((Revenue TTM 2.69b - Cost of Revenue TTM 718.0m) / Revenue TTM)
Gross Margin QoQ = 73.31% (prev 72.78%)
Tobins Q-Ratio = 1.56 (Enterprise Value 8.18b / Total Assets 5.23b)
Interest Expense / Debt = 3.25% (Interest Expense 17.0m / Debt 523.0m)
Taxrate = 4.17% (2.00m / 48.0m)
NOPAT = 45.0m (EBIT 47.0m * (1 - 4.17%))
Current Ratio = 2.29 (Total Current Assets 1.66b / Total Current Liabilities 724.0m)
Debt / Equity = 0.12 (Debt 523.0m / totalStockholderEquity, last quarter 4.41b)
Debt / EBITDA = -0.77 (Net Debt -260.0m / EBITDA 336.0m)
Debt / FCF = -0.79 (Net Debt -260.0m / FCF TTM 331.0m)
Total Stockholder Equity = 4.76b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.11% (Net Income 61.0m / Total Assets 5.23b)
RoE = 0.93% (Net Income TTM 61.0m / Total Stockholder Equity 6.57b)
RoCE = 0.71% (EBIT 47.0m / Capital Employed (Equity 6.57b + L.T.Debt 80.0m))
RoIC = 0.94% (NOPAT 45.0m / Invested Capital 4.78b)
WACC = 11.58% (E(8.44b)/V(8.96b) * Re(12.10%) + D(523.0m)/V(8.96b) * Rd(3.25%) * (1-Tc(0.04)))
Discount Rate = 12.10% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 41.40 | Cagr: 1.13%
[DCF] Terminal Value 68.02% ; FCFF base≈315.0m ; Y1≈357.3m ; Y5≈511.6m
[DCF] Fair Price = 122.1 (EV 4.91b - Net Debt -260.0m = Equity 5.17b / Shares 42.4m; r=11.58% [WACC]; 5y FCF grow 13.75% → 2.50% )
EPS Correlation: 87.86 | EPS CAGR: 11.04% | SUE: 1.72 | # QB: 1
Revenue Correlation: 99.45 | Revenue CAGR: 14.30% | SUE: 0.24 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.45 | Chg30d=-17.57% | Revisions=-62% | Analysts=15
EPS next Quarter (2026-09-30): EPS=0.69 | Chg30d=+8.06% | Revisions=+65% | Analysts=14
EPS current Year (2026-12-31): EPS=2.31 | Chg30d=+4.08% | Revisions=+29% | GrowthEPS=+40.9% | GrowthRev=+15.3%
EPS next Year (2027-12-31): EPS=3.04 | Chg30d=+4.98% | Revisions=+44% | GrowthEPS=+31.5% | GrowthRev=+13.1%
[Analyst] Revisions Ratio: +65%