LZ Valuation

LegalZoom.com Inc

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11.090

+0.11(1.002%)1D

Overview
Forecast
Valuation
Earnings

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 2.58 is considered Fairly compared with the five-year average of 62.04. The fair price of LegalZoom.com Inc (LZ) is between 5.81 to 21.38 according to relative valuation methord.

Relative Value

Fair Zone

5.81-21.38

Current Price：11.09

Fair

14.56

Trailing

Forward

9.61

EV/EBITDA

LegalZoom.com Inc. (LZ) has a current EV/EBITDA of 9.61. The 5-year average EV/EBITDA is 29.41. The thresholds are as follows: Strongly Undervalued below -39.31, Undervalued between -39.31 and -4.95, Fairly Valued between 63.78 and -4.95, Overvalued between 63.78 and 98.14, and Strongly Overvalued above 98.14. The current Forward EV/EBITDA of 9.61 falls within the Historic Trend Line -Fairly Valued range.

11.82

EV/EBIT

LegalZoom.com Inc. (LZ) has a current EV/EBIT of 11.82. The 5-year average EV/EBIT is 40.90. The thresholds are as follows: Strongly Undervalued below -56.32, Undervalued between -56.32 and -7.71, Fairly Valued between 89.51 and -7.71, Overvalued between 89.51 and 138.12, and Strongly Overvalued above 138.12. The current Forward EV/EBIT of 11.82 falls within the Historic Trend Line -Fairly Valued range.

2.58

LegalZoom.com Inc. (LZ) has a current PS of 2.58. The 5-year average PS is 3.60. The thresholds are as follows: Strongly Undervalued below -0.93, Undervalued between -0.93 and 1.34, Fairly Valued between 5.87 and 1.34, Overvalued between 5.87 and 8.13, and Strongly Overvalued above 8.13. The current Forward PS of 2.58 falls within the Historic Trend Line -Fairly Valued range.

11.22

P/OCF

LegalZoom.com Inc. (LZ) has a current P/OCF of 11.22. The 5-year average P/OCF is 23.99. The thresholds are as follows: Strongly Undervalued below -10.65, Undervalued between -10.65 and 6.67, Fairly Valued between 41.31 and 6.67, Overvalued between 41.31 and 58.63, and Strongly Overvalued above 58.63. The current Forward P/OCF of 11.22 falls within the Historic Trend Line -Fairly Valued range.

11.71

P/FCF

LegalZoom.com Inc. (LZ) has a current P/FCF of 11.71. The 5-year average P/FCF is 32.33. The thresholds are as follows: Strongly Undervalued below -17.09, Undervalued between -17.09 and 7.62, Fairly Valued between 57.04 and 7.62, Overvalued between 57.04 and 81.75, and Strongly Overvalued above 81.75. The current Forward P/FCF of 11.71 falls within the Historic Trend Line -Fairly Valued range.

LegalZoom.com Inc (LZ) has a current Price-to-Book (P/B) ratio of 10.32. Compared to its 3-year average P/B ratio of 14.26 , the current P/B ratio is approximately -27.58% higher. Relative to its 5-year average P/B ratio of 13.32, the current P/B ratio is about -22.49% higher. LegalZoom.com Inc (LZ) has a Forward Free Cash Flow (FCF) yield of approximately 6.61%. Compared to its 3-year average FCF yield of 4.63%, the current FCF yield is approximately 42.81% lower. Relative to its 5-year average FCF yield of 3.68% , the current FCF yield is about 79.57% lower.

10.32

P/B

Median3y

14.26

Median5y

13.32

6.61

FCF Yield

Median3y

4.63

Median5y

3.68

Competitors Valuation Multiple

The average P/S ratio for LZ's competitors is 1.21, providing a benchmark for relative valuation. LegalZoom.com Inc Corp (LZ) exhibits a P/S ratio of 2.58, which is 112.36% above the industry average. Given its robust revenue growth of 8.54%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

ICF International Inc

0.90

-7.01%

1.74B

Performance Decomposition

Market capitalization of LZ increased by 64.54% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 24.98 to 68.67.

The secondary factor is the Revenue Growth, contributed 8.54%to the performance.

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

8.54%

177.36M → 192.51M

Revenue Growth

-118.92%

0.74 → -0.14

Margin Expansion

174.92%

24.98 → 68.67

P/E Change

64.54%