Rankings Software, cloud & internet Zillow

Zillow

Software, cloud & internet · United StatesRank 195 of 829Prices 2 Nov 2026Model 1.4

15070100

A strong score: the model found few serious problems, but analysts see limited upside from here.

Biggest deductions

Margin and returns−6
Competition from Google−6
Quality of growth−4

Strengths

New growth engines+2

How the score is built

From 100 to 76, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.

100Start

76Score

Hover or select a step to see what drove it. Steps with findings open them below.

Key numbers

As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.

Price: 32.34 USD
Median analyst target: 37.00 USD
Upside to median: +14.4%
Analysts: 7
Target range: 34.00 – 62.00 USD
52-week change: −57%
P/E (trailing): 144.0
Forward P/E: 12.1
PEG: n/a

Findings

Every deduction and every plus, with its source. Open a step to read them.

Business

Is the company getting stronger, not just bigger? · 3 findings−13 of −30

Margin and returns
GAAP operating margin only 2.7%, net margin 2.0% and ROIC 1.7% (TTM); the adjusted EBITDA margin of 23-25% leaves out stock-based compensation of 363m USD (13% of revenue). Q2 produced a net loss of 4m USD after 36m in restructuring costs.
stockanalysis.com
−6
Quality of growth
Q2 revenue +18%, but the core Residential business (60% of revenue) grew only 7% and is guided roughly flat in Q3; growth comes from Mortgages (+75%) and Rentals (+31%). Q2 brought layoffs and a weaker revenue guidance than expected.
seekingalpha.com
−4
Capital allocation
Buybacks of USD 1.10bn (TTM) vs free cash flow of only 258m and 156m in new issuance; FCF minus stock compensation is negative, and net cash has shrunk to USD 140m. The share count is nevertheless +2.6% in a year.
stockanalysis.com
−3

Price

Today's multiples against the company's own history and its peers. · 1 finding−2 of −35

Multiples vs own history
P/S 2.5 vs 3.9–7.7 and P/B 1.65 vs 1.69–3.53 in 2021–2025 (lowest level), but GAAP P/E 137 and P/FCF 27.6; excluding stock compensation, EV/EBITDA is about 18 instead of about 9 on adjusted EBITDA. Cheap on revenue, not on real earnings.
stockanalysis.com
−2

Cracks

Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 4 findings−11 of −35

Competition from Google
Google rolled out home listings in search results in all 50 states in June 2026 (data via HouseCanary); BTIG writes that if Google can show and monetise the listings directly, it is 'less clear where Zillow might fit in'. Zillow says 80% of traffic comes directly.
techrepublic.com
−6
Litigation and regulation
The FTC case on the Redfin deal was closed on 24 Aug 2026 without payment, but Zillow must launch a standalone multifamily listing product in 2027; at the same time CoStar's lawsuit over rental listings and cases on the mortgage business are pending, and legal costs have cost about 2 percentage points of the EBITDA margin.
housingwire.com
−2
Housing market and macro
Management now expects industry mortgage originations to fall low-to-mid single digits in percentage terms for the rest of 2026 (weaker than previously assumed), and full-year revenue guidance is USD 2.92–2.96bn; US home sales remain low.
sec.gov
−2
Governance
Dual share class: the founders hold high-vote B shares, and the C share (Z) has no voting rights; short interest 7.8% of free float.
stockanalysis.com
−1

Plus

Only documented strengths. · 1 finding+2 of +15

New growth engines
Mortgages +75% and Rentals +31% in Q2, and Q3 is guided to over 50% and high-20s% growth; adjusted EBITDA of USD 176m was above the top of guidance.
sec.gov
+2

Caveats

What the score does not capture, or where the data is weak.

Scored on the A/C share Z (Class C); ZG is the A share. The Q3 report is due 4 Nov 2026; data as of 16 Oct 2026. The stock is down 58% over one year. Forward P/E 12 is based on adjusted EPS, which excludes stock-based compensation (USD 363m TTM, 13% of revenue). Industry set to 'Software, cloud & internet' as the closest (online housing portal). Not flagged cyclical, even though revenue follows the number of home sales and mortgages. The status of the CoStar, Compass and mortgage lawsuits has not been examined in detail; insider trading has not been examined.