Zillow Group, Inc. Class C logo Z - Zillow Group, Inc. Class C

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 21
HOLD 23
SELL 2
STRONG
SELL
0
| PRICE TARGET: $67.75 DETAILS
HIGH: $80.00
LOW: $53.00
MEDIAN: $69.00
CONSENSUS: $67.75
UPSIDE: 86.43%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 50% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Strong
Trading 61.1% above fair value
Current Price $36.34
Bear Case $22.55 37.9% downside ($22.55 - $36.34) / $36.34 = -37.9% 6% stage 1 growth, 12% discount
Fair Value $22.55 37.9% downside ($22.55 - $36.34) / $36.34 = -37.9% 10% stage 1 growth, 12% discount
Bull Case $22.55 37.9% downside ($22.55 - $36.34) / $36.34 = -37.9% 13% stage 1 growth, 12% discount

Adjust Assumptions

9.7%
12.0%
3.0%

Key Value Driver

FCF growth rate (10% base case)

Terminal Value % of EV 0%

Plain-Language Summary

Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $67.75 from 46 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $22.55 per share.

Warnings

Stock-based employee pay equals 1696% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
Wall Street's average price target is $67.75 (from 46 analysts). Our estimate is 95% below the consensus -- consider that gap carefully.

Key Risks

  • P/E alone misleads — earnings depressed by growth investment
  • Cyclical or commodity businesses may be misclassified as platforms
  • Terminal value dominance suggests sensitivity to long-run assumptions