D/E 0.13 — less debt than most Communication Services peers (≈25th pctile)
P/E159.9xD
P/E 159.9 — most expensive decile in Communication Services (≈95th pctile)
PEG0.92B+
PEG 0.92 — near fair value, classic Lynch benchmark (1.0)
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 51.9
Quality35.4
Growth78.4
Value50.2
Why this score
Diluting shareholders
Entry · Margin of safety
52-week rangeNear 52-week low
59% off the 12-month high
vs DCF fair value138% aboveest. fair value ~$15
What the price assumes: free cash flow compounding at ~40% a year for the next decade — vs the ~25% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability39% · B+gross profit ÷ total assets (Novy-Marx)
ROIC0.2% · Creturn on invested capital — not score-weighted
Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.
Why now
Zillow’s Residential SaaS suite, especially its premier‑agent CRM and transaction‑management tools, is rapidly becoming the default digital workflow for U.S. real‑estate professionals, driving a 17.7% YoY revenue growth while the business scales. The model’s free‑cash‑flow of $258 m and a low debt‑to‑equity of 0.13 give it the balance sheet flexibility to reinvest in product innovation, and the Bull Rankings model’s Growth pillar (78) underscores that compounding engine. The thesis hinges on the Residential segment’s ability to lock in agents for the long term, turning each new listing into recurring SaaS revenue.
Moat
The Residential segment’s integrated SaaS stack creates a high‑switching‑cost environment: agents who adopt the premier‑agent CRM, appointment center and enhanced listing services embed Zillow into every deal, making it costly to migrate to rivals. This lock‑in translates into a modest ROE of 1.3% that, while low, is protected by the platform’s data network and the unique integration of listings, marketing, and transaction tools that competitors cannot replicate quickly.
Risk
The stock trades at a sky‑high PE of 162.8 and a beta of 1.98, indicating that any slowdown in the already modest 2% profit margin or a dip in the housing market would sharply erode valuation. A 10‑year reverse‑DCF implies a required free‑cash‑flow growth of ~39% per year—far above the current 17.7% revenue growth—so any miss on the growth trajectory would validate the model’s “diluting shareholders” signal and crush the bull case.
Horizon
1-3 yr $47.23 (22-analyst consensus) — fundamentals + valuation re-rating. 5 yr $69.15 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $102.57 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
ZG vs the Top Picks average
Pillar
ZG
Book avg
Diff
Quality
0.35
0.84
-0.48
Growth
0.78
0.84
-0.05
Value
0.50
0.78
-0.28
Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.
Score history · ZG
Trend
-3.0 over 47 daily scores
From 54.9 (Jun 22) → 51.9 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Analyst estimate revisions
30-day change
-4.1%
90-day change
-4.0%
Forward EPS estimate
$2.92
Over the last 90 days, what analysts expect ZG to earn is drifting lower (-4.0%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.
A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →
Position sizing · ZG
$
%
%
Shares to buy
54
Position size
$1,986
4.0% of portfolio
Stop price
$27.59
25% below $36.78
$ at risk if stopped
$496.53
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Zillow Group, Inc. (ZG): score, valuation & FAQ
Zillow Group, Inc. (ZG) is a Internet Content & Information company that scores 51.9 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are D/E (A-), Rev (B+) and PEG (B+), while P/E (D) rate weaker. On valuation, ZG sits about 138% above our discounted-cash-flow fair value — the current price implies roughly 40% annual free-cash-flow growth over the next decade.
Is ZG a good stock to buy?
Bull Rankings scores ZG 51.9 out of 100 on its quality-growth model, which is a middling reading. That is driven by D/E (A-), Rev (B+) and PEG (B+). A score is a quantitative screen of Zillow Group, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does ZG score 51.9 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). ZG earns its highest marks on D/E (A-), Rev (B+) and PEG (B+), and is held back by P/E (D). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is ZG overvalued or undervalued?
Based on $36.78, ZG sits about 138% above our discounted-cash-flow fair value — the current price implies roughly 40% annual free-cash-flow growth over the next decade. It trades at a 159.9x P/E (graded D). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in ZG?
The stock trades at a sky‑high PE of 162.8 and a beta of 1.98, indicating that any slowdown in the already modest 2% profit margin or a dip in the housing market would sharply erode valuation. A 10‑year reverse‑DCF implies a required free‑cash‑flow growth of ~39% per year—far above the current 17.7% revenue growth—so any miss on the growth trajectory would validate the model’s “diluting shareholders” signal and crush the bull case.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.