TGM's two-stage DCF values LegalZoom.com, Inc. (LZ) between $9.38 and $14.82 depending on assumptions, with a base case of $11.65. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (10.4%) reflects its beta.
What would today's price require?
$5.86 is justified only if free cash flow grows about -7.8% a year (fading to 2.5% long-run) at a 10.4% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 8.8%/yr | 11.4% | $9.38 |
| Base case | 11.8%/yr | 10.4% | $11.65 |
| Optimistic | 14.8%/yr | 9.4% | $14.82 |
| Third-party model estimate (FMP) | independent reference · retrieved Oct 6, 2026 · assumptions not provided | $0.81 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$5.86
Market-Implied Growth
-7.8%/yr
vs +15.7% 5Y actual
Model Scenario Range
$9.38 – $14.82
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for LZ (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $96.3M · 0.17B shares · net cash $188.7M
Estimated Fair Value
$11.65
+98.9% vs $5.86
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 11.8%/yr FCF growth and 10-year horizon fixed. Green = above today's $5.86; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.4% | $13.69 | $14.50 | $15.45 | $16.57 | $17.92 |
| 9.4% | $12.00 | $12.60 | $13.27 | $14.05 | $14.97 |
| 10.4% | $10.70 | $11.15 | $11.65 | $12.22 | $12.88 |
| 11.4% | $9.67 | $10.01 | $10.40 | $10.83 | $11.32 |
| 12.4% | $8.82 | $9.10 | $9.40 | $9.74 | $10.11 |
