ZG
Zillow Group Inc
Price:  
70.43 
USD
Volume:  
458,553
United States | Interactive Media & Services

Zillow Fair Value

-104 %
Upside

What is the fair value of Zillow?

As of 2025-07-08, the Fair Value of Zillow Group Inc (ZG) is -2.79 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 70.43 USD, the upside of Zillow Group Inc is -104%.

Is Zillow a good investment?

With the market price of 70.43 USD and our fair value calculation, Zillow Group Inc (ZG) is not a good investment. Investing in Zillow stocks now will result in a potential loss of 104%.

Note: valuation result may not be accurate due to the company's negative EPS.

70.43 USD
Stock Price
-2.79 USD
Fair Price
FAIR VALUE CALCULATION

Zillow Fair Value

Peter Lynch's formula is:

Zillow Fair Value
= Earnings Growth Rate x TTM EPS
Zillow Fair Value
= 5 x -0.56
Zillow Fair Value
= -2.79

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-201912-202012-202112-202212-20235Y Avg
Net income-305.4-162.1-527.8-101-158-251
YoY growth-154.7%46.9%-225.6%80.9%-56.4%-61.8%

Zillow Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Baidu Inc31,84971.7250.25178.7%
Match Group Inc7,8062.245.3242.4%
ZoomInfo Technologies Inc6,8450.12.15-79.1%
Autohome Inc3,20313.19.16-65.6%
IAC/Interactivecorp3,046-10-251.04-758%
Yelp Inc2,2062.256.0362.1%
Weibo Corp2,1933.115.2658.5%
Tripadvisor Inc1,6520.62.75-84%
Yalla Group Ltd1,1130.922.31217%
Angi Inc7721.15.5-65.8%

Zillow Fair Value - Key Data

Market Cap (mil)16,769
P/E-
Forward P/E-
EPS-0.56
Avg earnings growth rate-61.8%
TTM earnings-133

Zillow Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.