LZ Valuation

LegalZoom.com Inc

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9.905

-0.065(-0.652%)1D

LZ Relative Valuation

LZ's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, LZ is overvalued; if below, it's undervalued.

Historical Valuation

LegalZoom.com Inc (LZ) is now in the Fair zone, suggesting that its current forward PS ratio of 9.97 is considered Fairly compared with the five-year average of 59.25. The fair price of LegalZoom.com Inc (LZ) is between 6.26 to 9.94 according to relative valuation methord.

Relative Value

Fair Zone

6.26-9.94

Current Price：9.90

Fair

13.52

Trailing

Forward

8.25

EV/EBITDA

LegalZoom.com Inc. (LZ) has a current EV/EBITDA of 8.25. The 5-year average EV/EBITDA is 28.60. The thresholds are as follows: Strongly Undervalued below -39.20, Undervalued between -39.20 and -5.30, Fairly Valued between 62.50 and -5.30, Overvalued between 62.50 and 96.40, and Strongly Overvalued above 96.40. The current Forward EV/EBITDA of 8.25 falls within the Historic Trend Line -Fairly Valued range.

9.95

EV/EBIT

LegalZoom.com Inc. (LZ) has a current EV/EBIT of 9.95. The 5-year average EV/EBIT is 39.69. The thresholds are as follows: Strongly Undervalued below -56.29, Undervalued between -56.29 and -8.30, Fairly Valued between 87.68 and -8.30, Overvalued between 87.68 and 135.66, and Strongly Overvalued above 135.66. The current Forward EV/EBIT of 9.95 falls within the Historic Trend Line -Fairly Valued range.

9.97

LegalZoom.com Inc. (LZ) has a current PS of 9.97. The 5-year average PS is 3.63. The thresholds are as follows: Strongly Undervalued below -1.01, Undervalued between -1.01 and 1.31, Fairly Valued between 5.95 and 1.31, Overvalued between 5.95 and 8.27, and Strongly Overvalued above 8.27. The current Forward PS of 9.97 falls within the Strongly Overvalued range.

9.54

P/OCF

LegalZoom.com Inc. (LZ) has a current P/OCF of 9.54. The 5-year average P/OCF is 23.47. The thresholds are as follows: Strongly Undervalued below -10.85, Undervalued between -10.85 and 6.31, Fairly Valued between 40.63 and 6.31, Overvalued between 40.63 and 57.79, and Strongly Overvalued above 57.79. The current Forward P/OCF of 9.54 falls within the Historic Trend Line -Fairly Valued range.

10.73

P/FCF

LegalZoom.com Inc. (LZ) has a current P/FCF of 10.73. The 5-year average P/FCF is 31.45. The thresholds are as follows: Strongly Undervalued below -17.72, Undervalued between -17.72 and 6.86, Fairly Valued between 56.03 and 6.86, Overvalued between 56.03 and 80.62, and Strongly Overvalued above 80.62. The current Forward P/FCF of 10.73 falls within the Historic Trend Line -Fairly Valued range.

LegalZoom.com Inc (LZ) has a current Price-to-Book (P/B) ratio of 8.86. Compared to its 3-year average P/B ratio of 14.06 , the current P/B ratio is approximately -36.94% higher. Relative to its 5-year average P/B ratio of 13.08, the current P/B ratio is about -32.23% higher. LegalZoom.com Inc (LZ) has a Forward Free Cash Flow (FCF) yield of approximately 0.09%. Compared to its 3-year average FCF yield of 5.18%, the current FCF yield is approximately -98.30% lower. Relative to its 5-year average FCF yield of 3.92% , the current FCF yield is about -97.75% lower.

8.86

P/B

Median3y

14.06

Median5y

13.08

0.09

FCF Yield

Median3y

5.18

Median5y

3.92

Competitors Valuation Multiple

The average P/S ratio for LZ's competitors is 22.83, providing a benchmark for relative valuation. LegalZoom.com Inc Corp (LZ) exhibits a P/S ratio of 9.97, which is -56.33% above the industry average. Given its robust revenue growth of 12.79%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of LZ increased by 25.73% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 47.22 to 83.46.

The secondary factor is the Revenue Growth, contributed 12.79%to the performance.

Overall, the performance of LZ in the past 1 year is driven by P/E Change. Which is more unsustainable.

12.79%

168.60M → 190.16M

Revenue Growth

-63.82%

6.55 → 2.37

Margin Expansion

76.76%

47.22 → 83.46

P/E Change

25.73%