Zillow Group, Inc. Class C (Z) DCF: History & Chart

Zillow Group, Inc. Class C (Z)ZZillow Group, Inc. Class C

About Zillow Group, Inc. Class C

Zillow Group, Inc. functions as a prominent digital real estate enterprise, offering a variety of real estate platforms accessible through mobile applications and websites throughout the United States. The company's operations are divided into three principal segments: Homes, Internet, Media & Technology (IMT), and Mortgages. The Homes division facilitates the resale of properties and delivers extensive title and escrow services to both property purchasers and sellers, encompassing title examination for insurance, escrow administration, and other essential closing procedures. The IMT segment provides marketplaces for premier agents, rental properties, and new construction, in addition to offerings like dotloop, diverse advertising solutions, and specialized business software. Through its Mortgage segment, Zillow offers home financing options and marketing products, including personalized quotes and connection services. Its comprehensive brand portfolio features well-known names such as Zillow Rentals, Trulia, StreetEasy, Zillow Closing Services, HotPads, and Out East. Established in 2004, Zillow Group's corporate headquarters are situated in Seattle, Washington.

Seattle, WA

6,819 employees

www.zillowgroup.com

Communication Services / Internet Content & Information

Sector: Communication Services
Industry: Internet Content & Information
CEO: Jeremy Wacksman

View full financials

Zillow Group, Inc. Class C (Z) DCF Valuation

Why we don't show a single “fair value” for Z

A trailing-FCF DCF can't fairly anchor Zillow Group, Inc. Class C right now — free cash flow is currently depressed by a heavy investment cycle while revenue keeps growing. For a company in this position, trailing free cash flow understates what the business actually earns for owners, so any “fair value” built on it would be misleadingly low. The honest lens is the question below: what growth does today's price actually require? The model scenarios are listed further down for reference.

What would today's price require?

Growth the price assumes+25.3%/yr

Actual revenue growth, last 5 years+9.7%/yr

$30.76 is justified only if free cash flow grows about +25.3% a year (fading to 2.5% long-run) at a 11.5% required return — faster than the company has actually grown.

Scenario	FCF growth (fading to 2.5%)	Discount	Value / share
Conservative	6.7%/yr	12.5%	$14.36
Base case	9.7%/yr	11.5%	$17.66
Optimistic	12.7%/yr	10.5%	$22.11

Price|PE Ratio|FCF Yield|All Metrics

Current Price

$30.76

Market-Implied Growth

+25.3%/yr

vs +9.7% 5Y actual

Base-Case Model Value

$17.66

model output — not a price target

Z DCF Fair Value Calculator

Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for Z (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.

FCF Growth Rate9.7%/yr

Historical FCF CAGR: 3Y 15.6% · 5Y -5.7% · 10Y 67.8%

Discount Rate (WACC)11.5%

Terminal Growth2.5%

Projection Years10yr

Base inputs: FCF $260.0M · 0.24B shares · net cash $316.0M

Estimated Fair Value

$17.66

-42.6% vs $30.76

Current price$30.76

Sensitivity — fair value by discount rate × terminal growth

How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 9.7%/yr FCF growth and 10-year horizon fixed. Green = above today's $30.76; red = below. Your current case is outlined.

WACC ↓ / Terminal →	1.50%	2.00%	2.50%	3.00%	3.50%
9.5%	$20.41	$21.42	$22.57	$23.89	$25.44
10.5%	$18.18	$18.94	$19.80	$20.77	$21.88
11.5%	$16.40	$16.99	$17.66	$18.39	$19.22
12.5%	$14.95	$15.42	$15.94	$16.52	$17.16
13.5%	$13.74	$14.12	$14.54	$15.00	$15.51