Market Pulse44Neutral

Zillow Group, Inc. Class COpportunity Rank #171(Z) Intrinsic Value & DCF Analysis (2026)

Current Price

$30.31

Last updated: Jun 23, 2026

Price vs Intrinsic Value

$30.31
Price
$35.69
Intrinsic Value
Undervalued by 18%MOS: $28.55

Fundamental Score

50/100
Bearish

Weighted across 6 signals

Narrative Score

61/100
Improving

-1 vs previous

Trend Score

7/100
Weak

As of 2026-06-22

The intrinsic value of Zillow Group, Inc. Class C (Z) is estimated at $35.69 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $30.31, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 9.38% long-term growth rate and an 11.67% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Zillow Group, Inc. Class C (Z) is estimated at $35.69 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $30.31, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 9.38% long-term growth rate and an 11.67% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$35.69
▲ 17.75% upside
20% margin of safety: $28.55
Years: 10Growth Rate: 9.38%
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Capital Efficiency

Average Quarterly ROIC
0.49%
Cost of Capital (estimated)7%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

50/100
BearishWeighted across 6 signals
DCF Discount
17.7% discount to price
80
FCF Yield
6.8% trailing FCF yield
100
ROIC vs WACC
ROIC 0.5% vs WACC 7.0% (0.1x)
3
Net Debt / FCF
Net cash position
100
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
-0.8% 5Y FCF CAGR (adjusted)
0
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, FCF CAGR (5Y).

Narrative Details

61/100
Improving
-1 vs previous · +2 new driversVs 6-Month Baseline:Above Avg (78th pct)Weighted across 6 recent drivers
Trend: StableConfidence: 100%Updated: 4h ago
Sources: 164 (162 News · 2 Analyst)
Drivers(last 30 days)
98 legal risk+0.7
49 news sentiment+0.4
Earnings beat+0.0
12 regulatory scrutiny+0.0
Margin pressure+0.0
Downgrade headlines-0.0

Trend Details

7/100
WeakAs of 2026-06-22308 daily bars used
Distance from 52-Week High-66.4%
3M Relative Strength vs SPY-45.8%
6M Relative Strength vs SPY-66.8%
Price vs 21 EMA4 · -12.0%
Price vs 50 EMA1 · -20.5%
21 EMA vs 50 EMA3 · -9.7%
3M RS vs SPY0 · -45.8%
6M RS vs SPY0 · -66.8%
Distance from 52W High0 · -66.4%

Investment Coach

Updating... 12d ago
WATCHConfidence: 45%
Thesis
Zillow Group, Inc. Class C shows a 14.2% upside based on valuation with a healthy free cash flow yield of 6.0% and a strong balance sheet near net cash. However, returns are currently trailing the estimated cost of capital, indicating potential challenges in generating sufficient economic profit.
Key Risk
The key risk is the company's return on invested capital significantly underperforming its weighted average cost of capital, which may pressure valuation and returns.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC versus WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 9.38%5 Year CAGR (Adjusted): 413.38%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009
$493$501$571$519$4,644-$3,072$533-$526$82$337$80$91$90$57$49$24$80$

How Intrinziq Estimates Fair Value

Intrinziq estimates Zillow Group, Inc. Class C's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Zillow Group, Inc. Class CCommunication Services

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.