One-glance verdict
Within fair range
$26.14 our estimate vs market $33.18
Wall Street consensus: $46.00 (76.0% higher than our fair-value estimate)
27% above our estimate
Fundamentals snapshot
Zillow Group, Inc.
Z · NMS · Communication Services · Internet Content & Information
Current price
$33.18
52-week range
$29.23 - $93.88
Market cap
$7.46B
Balance sheet
Healthy
-1.78x Concerning
Net cash $140.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 8.8% last year.
- Reward Returns 1.2% on equity, ahead of 40% of its peers.
- Reward Free cash flow was positive in 6/10 years.
What this company does
Zillow Group, Inc.
Zillow Group runs popular real estate websites and apps, like Zillow and Trulia, that people use to browse for homes to buy or rent. The company makes most of its money by selling advertising and leads (connections to potential customers) to the real estate agents who want to reach this large online audience. Zillow's success depends on attracting many home-shoppers to its sites, which makes its services more valuable to the agents paying for them.
How the company got here
Zillow was started in 2006 by two former Microsoft executives who were frustrated by the lack of real estate information available to the public. Their idea was to create a website that gave people free access to data about homes, including their estimated values, which they called "Zestimates". The site was an instant hit, attracting over a million visitors in its first few days. Over the years, Zillow grew by acquiring other real estate websites like Trulia and StreetEasy, becoming the largest online real estate marketplace in the U.S. A key turning point was the decision to shut down its home-flipping business, Zillow Offers, in 2021 to focus on its core online platform and services.
What it actually does
Zillow is an online marketplace for all things real estate that you can access through its website and mobile apps. For people looking to buy, sell, or rent a home, Zillow provides millions of listings, home value estimates, and connects them with real estate agents and lenders. While you can browse homes for free, the company makes money by charging real estate professionals for advertising and software tools that help them connect with customers and manage their business. Think of it as a giant online hub that brings together everyone involved in the process of moving, from the initial search to closing the deal.
Residential
This is Zillow's largest business segment, making up the majority of its revenue (the total amount of money a company brings in from sales). It primarily makes money by selling advertising and leads (potential customer contacts) to real estate agents. When you're on Zillow and ask to contact an agent about a house, that agent has likely paid Zillow to be featured. This segment also includes marketing solutions for new home builders and software tools that help agents manage their client relationships and transactions.
Rentals
Zillow also has a large and growing marketplace for rental properties. Landlords and large property management companies pay to advertise their available apartments and houses on Zillow's network, which includes sites like Trulia and HotPads. While searching for a rental is free, renters can choose to pay for optional services like a universal application fee to apply to multiple properties. This part of the business is a key growth area for the company.
Mortgages
Through its own lender, Zillow Home Loans, the company offers mortgages directly to home buyers. It earns money from the interest and fees on these loans, similar to how a traditional bank does. Additionally, Zillow operates a mortgage marketplace where other lenders can pay to advertise their loan rates and connect with potential borrowers. This allows Zillow to earn revenue even if a customer chooses not to get their loan directly from Zillow Home Loans.
What management is betting on now
Zillow's main strategy is to become a "Housing Super App," an all-in-one platform that seamlessly connects every step of the moving process. This means integrating the initial home search with touring, financing through Zillow Home Loans, and closing the deal. By creating a more integrated and convenient experience, they hope to capture a larger share of the money spent on each real estate transaction. The company is also heavily investing in artificial intelligence (AI) to personalize the user experience and provide better data and tools for real estate professionals.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$138.00M
FY2024 Q4
$88.00M
FY2025 Q1
$68.00M
FY2025 Q2
$50.00M
FY2025 Q3
$73.00M
FY2025 Q4
$44.00M
FY2026 Q1
$166.00M
FY2026 Q2
$-25.00M
Revenue
$772.00M
Net income
$-4.00M
Diluted EPS
-0.02
Operating cash flow
$11.00M
Free cash flow
$-25.00M
Fetching…
Sources
Revenue
$708.00M
Net income
$46.00M
Diluted EPS
0.19
Operating cash flow
$200.00M
Free cash flow
$166.00M
Fetching…
Sources
Revenue
$654.00M
Net income
$3.00M
Diluted EPS
0.01
Operating cash flow
$72.00M
Free cash flow
$44.00M
Fetching…
Sources
Revenue
$676.00M
Net income
$10.00M
Diluted EPS
0.04
Operating cash flow
$105.00M
Free cash flow
$73.00M
Fetching…
Sources
Revenue
$655.00M
Net income
$2.00M
Diluted EPS
0.01
Operating cash flow
$87.00M
Free cash flow
$50.00M
Fetching…
Sources
Revenue
$598.00M
Net income
$8.00M
Diluted EPS
0.03
Operating cash flow
$104.00M
Free cash flow
$68.00M
Fetching…
Sources
Revenue
$554.00M
Net income
$-52.00M
Diluted EPS
-0.23
Operating cash flow
$122.00M
Free cash flow
$88.00M
Fetching…
Sources
Revenue
$581.00M
Net income
$-20.00M
Diluted EPS
-0.08
Operating cash flow
$171.00M
Free cash flow
$138.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $26.14 vs current price $33.18
Wall Street consensus is the average analyst price target: $46.00 (76.0% higher than our fair-value estimate).
Our most-likely fair value is $26.14 a share — about 21.2% away from today's price of $33.18, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $140.0M - more cash than debt. Interest coverage -1.8x.
Net debt
$-140.00M
Interest coverage
-1.78x
Zillow Group, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
Z
BASELINE
Zillow Group, Inc.
Total debt $558.00M Interest coverage -1.78x This is the baseline the peer rows are being compared against.
Total debt $4.11B Interest coverage -3.13x Neither company has much profit cushion over interest right now.
Total debt $1.16B Interest coverage -0.65x Neither company has much profit cushion over interest right now.
Total debt $1.96B Interest coverage -2.11x Neither company has much profit cushion over interest right now.
Total debt $35.77M Interest coverage 18.75x This peer still has a real interest-payment cushion, while Z does not.
What you should know
The case for and against Z
3 Rewards
0 Risks
Rewards
-
Revenue grew 8.8% last year.
-
Returns 1.2% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
144.26x
Forward P/E
11.89x
P/B
1.72x
P/S
2.66x
EV/EBITDA
41.84x
PEG ratio
0.93x
Profitability
How much profit each dollar creates
Gross margin
72.9%
Operating margin
4.7%
Net margin
2.0%
ROE
1.2%
ROA
0.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.13x
Current ratio
1.92x
Quick ratio
1.29x
Total debt
$558.00M
Total cash
$698.00M
Growth
How the business has been compounding
Revenue TTM
$2.81B
Revenue 5Y CAGR
4.9%
EPS TTM
0.23
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$388.00M
Free CF TTM
$235.00M
FCF margin
8.4%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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