ZG PE Ratio & Valuation,Is ZG Overvalued

ZG Relative Valuation

ZG'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, ZG is overvalued; if below, it's undervalued.

Historical Valuation

Zillow Group Inc (ZG) is now in the Fair zone, suggesting that its current forward PS ratio of 5.56 is considered Fairly compared with the five-year average of 33.36. The fair price of Zillow Group Inc (ZG) is between 45.25 to 73.98 according to relative valuation methord.

Relative Value

Fair Zone

45.25-73.98

Current Price：67.43

Fair

31.36

20.04

EV/EBITDA

Zillow Group Inc. (ZG) has a current EV/EBITDA of 20.04. The 5-year average EV/EBITDA is -73.45. The thresholds are as follows: Strongly Undervalued below -1067.63, Undervalued between -1067.63 and -570.54, Fairly Valued between 423.65 and -570.54, Overvalued between 423.65 and 920.74, and Strongly Overvalued above 920.74. The current Forward EV/EBITDA of 20.04 falls within the Historic Trend Line -Fairly Valued range.

247.59

EV/EBIT

Zillow Group Inc. (ZG) has a current EV/EBIT of 247.59. The 5-year average EV/EBIT is 28.10. The thresholds are as follows: Strongly Undervalued below -683.81, Undervalued between -683.81 and -327.86, Fairly Valued between 384.05 and -327.86, Overvalued between 384.05 and 740.00, and Strongly Overvalued above 740.00. The current Forward EV/EBIT of 247.59 falls within the Historic Trend Line -Fairly Valued range.

5.56

Zillow Group Inc. (ZG) has a current PS of 5.56. The 5-year average PS is 5.02. The thresholds are as follows: Strongly Undervalued below 2.06, Undervalued between 2.06 and 3.54, Fairly Valued between 6.50 and 3.54, Overvalued between 6.50 and 7.98, and Strongly Overvalued above 7.98. The current Forward PS of 5.56 falls within the Historic Trend Line -Fairly Valued range.

17.90

P/OCF

Zillow Group Inc. (ZG) has a current P/OCF of 17.90. The 5-year average P/OCF is 38.50. The thresholds are as follows: Strongly Undervalued below -86.31, Undervalued between -86.31 and -23.91, Fairly Valued between 100.90 and -23.91, Overvalued between 100.90 and 163.31, and Strongly Overvalued above 163.31. The current Forward P/OCF of 17.90 falls within the Historic Trend Line -Fairly Valued range.

21.59

P/FCF

Zillow Group Inc. (ZG) has a current P/FCF of 21.59. The 5-year average P/FCF is 33.40. The thresholds are as follows: Strongly Undervalued below -22.03, Undervalued between -22.03 and 5.68, Fairly Valued between 61.11 and 5.68, Overvalued between 61.11 and 88.83, and Strongly Overvalued above 88.83. The current Forward P/FCF of 21.59 falls within the Historic Trend Line -Fairly Valued range.

Zillow Group Inc (ZG) has a current Price-to-Book (P/B) ratio of 3.18. Compared to its 3-year average P/B ratio of 2.93 , the current P/B ratio is approximately 8.61% higher. Relative to its 5-year average P/B ratio of 3.19, the current P/B ratio is about -0.25% higher. Zillow Group Inc (ZG) has a Forward Free Cash Flow (FCF) yield of approximately 1.75%. Compared to its 3-year average FCF yield of 5.71%, the current FCF yield is approximately -69.34% lower. Relative to its 5-year average FCF yield of 4.71% , the current FCF yield is about -62.84% lower.

3.18

P/B

Median3y

2.93

Median5y

3.19

1.75

FCF Yield

Median3y

5.71

Median5y

4.71

Competitors Valuation Multiple

The average P/S ratio for ZG's competitors is 3.88, providing a benchmark for relative valuation. Zillow Group Inc Corp (ZG) exhibits a P/S ratio of 5.56, which is 43.06% above the industry average. Given its robust revenue growth of 16.35%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of ZG decreased by 14.86% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -232.64 to -492.75.

The secondary factor is the Revenue Growth, contributed 16.35%to the performance.

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

16.35%

581.00M → 676.00M

Revenue Growth

-143.02%

-3.44 → 1.48

Margin Expansion

111.81%

-232.64 → -492.75

P/E Change

-14.86%

79.20 → 67.43

Mkt Cap Growth

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Frequently Asked Questions

Is Zillow Group Inc (ZG) currently overvalued or undervalued?

What is Zillow Group Inc (ZG) fair value?

ZG'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. The fair price of Zillow Group Inc (ZG) is between 45.25 to 73.98 according to relative valuation methord.

How does ZG's valuation metrics compare to the industry average?

What is the current P/B ratio for Zillow Group Inc (ZG) as of Jan 09 2026?

As of Jan 09 2026, Zillow Group Inc (ZG) has a P/B ratio of 3.18. This indicates that the market values ZG at 3.18 times its book value.

What is the current FCF Yield for Zillow Group Inc (ZG) as of Jan 09 2026?

As of Jan 09 2026, Zillow Group Inc (ZG) has a FCF Yield of 1.75%. This means that for every dollar of Zillow Group Inc’s market capitalization, the company generates 1.75 cents in free cash flow.

What is the current Forward P/E ratio for Zillow Group Inc (ZG) as of Jan 09 2026?

As of Jan 09 2026, Zillow Group Inc (ZG) has a Forward P/E ratio of 31.36. This means the market is willing to pay $31.36 for every dollar of Zillow Group Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Zillow Group Inc (ZG) as of Jan 09 2026?

As of Jan 09 2026, Zillow Group Inc (ZG) has a Forward P/S ratio of 5.56. This means the market is valuing ZG at $5.56 for every dollar of expected revenue over the next 12 months.

ZG Valuation