Z Relative Valuation
Z'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, Z is overvalued; if below, it's undervalued.
Historical Valuation
Zillow Group Inc (Z) is now in the Fair zone, suggesting that its current forward PS ratio of 68.80 is considered Fairly compared with the five-year average of 36.22. The fair price of Zillow Group Inc (Z) is between to according to relative valuation methord.
Relative Value
Fair Zone
-
Current Price：68.45
Fair
32.34
PE
1Y
3Y
5Y
Trailing
Forward
20.90
EV/EBITDA
Zillow Group Inc. (Z) has a current EV/EBITDA of 20.90. The 5-year average EV/EBITDA is -84.09. The thresholds are as follows: Strongly Undervalued below -1124.51, Undervalued between -1124.51 and -604.30, Fairly Valued between 436.11 and -604.30, Overvalued between 436.11 and 956.32, and Strongly Overvalued above 956.32. The current Forward EV/EBITDA of 20.90 falls within the Historic Trend Line -Fairly Valued range.
256.56
EV/EBIT
Zillow Group Inc. (Z) has a current EV/EBIT of 256.56. The 5-year average EV/EBIT is 33.77. The thresholds are as follows: Strongly Undervalued below -711.57, Undervalued between -711.57 and -338.90, Fairly Valued between 406.44 and -338.90, Overvalued between 406.44 and 779.11, and Strongly Overvalued above 779.11. The current Forward EV/EBIT of 256.56 falls within the Historic Trend Line -Fairly Valued range.
68.80
PS
Zillow Group Inc. (Z) has a current PS of 68.80. The 5-year average PS is 5.72. The thresholds are as follows: Strongly Undervalued below -8.14, Undervalued between -8.14 and -1.21, Fairly Valued between 12.64 and -1.21, Overvalued between 12.64 and 19.57, and Strongly Overvalued above 19.57. The current Forward PS of 68.80 falls within the Strongly Overvalued range.
18.57
P/OCF
Zillow Group Inc. (Z) has a current P/OCF of 18.57. The 5-year average P/OCF is 24.15. The thresholds are as follows: Strongly Undervalued below -209.14, Undervalued between -209.14 and -92.50, Fairly Valued between 140.79 and -92.50, Overvalued between 140.79 and 257.44, and Strongly Overvalued above 257.44. The current Forward P/OCF of 18.57 falls within the Historic Trend Line -Fairly Valued range.
23.34
P/FCF
Zillow Group Inc. (Z) has a current P/FCF of 23.34. The 5-year average P/FCF is 29.54. The thresholds are as follows: Strongly Undervalued below -47.70, Undervalued between -47.70 and -9.08, Fairly Valued between 68.17 and -9.08, Overvalued between 68.17 and 106.79, and Strongly Overvalued above 106.79. The current Forward P/FCF of 23.34 falls within the Historic Trend Line -Fairly Valued range.
Zillow Group Inc (Z) has a current Price-to-Book (P/B) ratio of 3.34. Compared to its 3-year average P/B ratio of 2.86 , the current P/B ratio is approximately 16.54% higher. Relative to its 5-year average P/B ratio of 3.28, the current P/B ratio is about 1.58% higher. Zillow Group Inc (Z) has a Forward Free Cash Flow (FCF) yield of approximately 1.68%. Compared to its 3-year average FCF yield of 7.79%, the current FCF yield is approximately -78.37% lower. Relative to its 5-year average FCF yield of 4.73% , the current FCF yield is about -64.36% lower.
3.34
P/B
Median3y
2.86
Median5y
3.28
1.68
FCF Yield
Median3y
7.79
Median5y
4.73
Competitors Valuation Multiple
The average P/S ratio for Z's competitors is 129.38, providing a benchmark for relative valuation. Zillow Group Inc Corp (Z) exhibits a P/S ratio of 68.80, which is -46.82% above the industry average. Given its robust revenue growth of 16.35%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of Z decreased by 19.22% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -249.08 to -516.71.
The secondary factor is the Revenue Growth, contributed 16.35%to the performance.
Overall, the performance of Z in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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