Market Pulse50Neutral

Zillow Group, Inc. Class COpportunity Rank #235(Z) Intrinsic Value & DCF Analysis (2026)

Current Price

$44.82

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$44.82
Price
$35.87
Intrinsic Value
Overvalued by 20%MOS: $28.70

Fundamental Score

32/100
Bearish

Weighted across 6 signals

Narrative Score

52/100
Weak

No change vs previous

The intrinsic value of Zillow Group, Inc. Class C (Z) is estimated at $35.87 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $44.82, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 9.39% long-term growth rate and an 11.82% 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 $35.87 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $44.82, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 9.39% long-term growth rate and an 11.82% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$35.87
-19.97% downside
20% margin of safety: $28.70
Years: 10Growth Rate: 9.39%
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Capital Efficiency

Average Quarterly ROIC
0.14%
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

32/100
BearishWeighted across 6 signals
DCF Discount
20.0% premium to price
17
FCF Yield
4.7% trailing FCF yield
67
ROIC vs WACC
ROIC 0.1% vs WACC 7.0% (0.0x)
1
Net Debt / FCF
Net cash position
100
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
-0.5% 5Y FCF CAGR (adjusted)
0
Strengths: Net Debt / FCF, Buybacks. Concerns: DCF Discount, ROIC vs WACC.

Narrative Details

52/100
Weak
Vs 6-Month Baseline:Above Avg (68th pct)Weighted across 6 recent drivers
Trend: StableConfidence: 91%Updated: 1h ago
Sources: 58 (55 News · 3 Analyst)
Drivers(last 30 days)
40 news sentiment+0.7
4 legal risk-0.4
8 regulatory scrutiny-0.1
Layoffs-0.0
Earnings miss-0.0
Downgrade headlines-0.0

Investment Coach

Updated 13h ago
AVOIDConfidence: 72%
Thesis
Zillow Group, Inc. Class C exhibits weak fundamentals with returns trailing its cost of capital and shares trading above its fair value, suggesting limited upside. Despite a net cash position, the company's financial performance and valuation do not support investment at current prices.
Key Risk
The primary risk is that the company's returns on invested capital fail to improve relative to its weighted average cost of capital, further eroding shareholder value.
Signals To Watch
  • Price declines to at least a mid-teens discount to fair value.
  • Sustained improvement in ROIC versus WACC spread.
  • Meaningful positive shifts in the company's narrative and fundamental score.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 9.39%5 Year CAGR (Adjusted): 413.84%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009
$509$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., a digital real estate company, operates real estate brands on mobile applications and Websites in the United States. The company operates through three segments: Homes; Internet, Media & Technology; and Mortgages. The Homes segment is involved in resale of homes; and title and escrow services to home buyers and sellers, including title search procedures for title insurance policies, escrow, and other closing services. The IMT segment offers premier agent, rentals, and new construction marketplaces, as well as dotloop, display, and other advertising, as well as business software solutions. The Mortgage segment provides home loans; and marketing products including custom quote and connect services. Its portfolio of brands includes Zillow Rentals, Trulia, StreetEasy, Zillow Closing Services, HotPads, and Out East. The company was incorporated in 2004 and is headquartered in Seattle, Washington.

Zillow Group, Inc. Class C (Z) Intrinsic Value & DCF (2026) | Intrinziq