3 models fit Zillow Group Inc. Class C Capital Stock and they disagree: 0 of 3 land within 15% of the average.
Two or more of our models back this value.
Large premium(i)
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
ACCE opinionZillow Group Inc. Class C Capital Stock (Z)
Fair value (3 models)
$21.07
ACCE price target
$30.00
Rating
Overvalued
Horizon
12 months
Fair value published on 16 Oct 2026, 00:00 CEST; previously $21.61 since 11 Oct 2026, 00:00 CEST.
ACCE price target published on 27 Sept 2026, 00:00 CEST.
Rating published on 20 Oct 2026, 16:04 CEST.
Price used: $32.98 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, EV/EBITDA comparison, Graham number, and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
56.5% above
-36.1% to fair value
ACCE score
52
out of 100
Analysts
29% buy
7 covering
P/E
143.4x
forward 33.7x
1-year return
-57.7%
Dividend yield
0.00%
Zillow Group Inc. Class C Capital Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Zillow runs the largest U.S. real estate marketplace by traffic, earning revenue from agent advertising on Zillow Premier Agent, from its mortgage and home-loan referral business, and from rentals and home-listing software. Its structural edge is the audience: the listing feed and buyer traffic are hard to replicate, and that traffic is what agents pay to reach. Revenue grew 17.9%, with a 72.9% gross margin, but operating margin is only 4.7%, so the question is how much of that gross profit reaches the bottom line as housing volumes recover. The trailing P/E of 121.6 reflects depressed earnings, while the forward P/E of 10.0 implies the market expects a sharp earnings rebound, and that gap is the central thing to test. At a 1.2% ROE and a score of 54/100, with no index membership, this is a name that needs a deeper look at margin trajectory before anyone takes it seriously.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Profitability metrics deteriorating
ROE of +1.2% and net margin of +2.0% are extremely thin. Operating margin of +4.7% leaves little buffer for cost pressures or revenue headwinds.
high
Valuation disconnect at extremes
Trailing P/E of 126.1 vs forward P/E of 10.4 signals market expects sharp earnings deceleration.
moderate
Five-year revenue decline
5-year revenue CAGR of -25.2% shows structural headwinds despite recent +17.9% YoY growth and +9.0% QoQ recovery. Earnings spike of +533% is likely from a depressed base.
moderate
Insider selling without offsetting buys
Last 10 disclosed transactions show $1.32M in sales and $0.00M in buys. Insiders are net sellers despite stock near fair value.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue accelerated to 17.9% year-over-year growth, signaling a meaningful turnaround from the five-year decline of 25.2% annually.
The stock trades at 10.4x forward P/E, well below the 16.8x sector median, while generating 3.7% free cash flow yield.
Latest earnings beat expectations by 100%, and analysts' mean price target of $46.00 implies 58.6% upside from current levels.
Why it could disappoint
Net margin of 2.0% and ROE of 1.2% reveal profitability remains razor-thin despite headline earnings growth from a depressed base.
Consensus fair value is 25.5% below the current share price of $29.01, with 3 of 4 valuation models supporting the discount.
Share count diluted 8.6% in the last fiscal year while ROIC remains stuck at 0.4%, destroying shareholder value at scale.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 4, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where Z's valuation models land
Price
$32.98
Model fair value
$21.07
Model range
$13.39 to $36.93
Fair value $21.07
Price $32.98
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
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