Zillow: Initiating Coverage on the Largest US Real Estate Marketplace; Shares Fairly Valued
We're initiating research coverage on Zillow Group, a leading online US real estate marketplace.
Zillow Group Inc Class A ZG
Bulls Say, Bears Say
Bulls
The Preferred model could increase revenue per connection beyond our expectations by driving higher conversion rates and a greater share of transaction economics on Zillow.
Bears
The 10-year Treasury and 30-year fixed mortgage rates could remain elevated for longer than forecast, suppressing home purchase volume in a model increasingly tied to it.
News
-
Hidden costs of homeownership top $16.5K/year, up nearly 32% in 5 years
-
Zillow brings specialized housing intelligence to Claude, with a path to tours, agents and financing
-
Rental demand is up 20% as high lending costs stifle the for-sale market
-
What $100K rents: A house in Memphis, a one-bedroom apartment in San Jose
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Zillow Group to Announce Third-Quarter 2026 Results Nov. 4
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Zillow's September Market Report shows an early winter in the housing market as newly pending sales fall 8.5%
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New homes now cost less than existing ones in one-third of major markets
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A 20% spike in high-intent home shoppers signals pent-up demand
Trading Information
- Previous Close Price
- $32.41
- Day Range
- $34.56–35.12
- 52-Week Range
- $27.28–76.23
- Bid/Ask
- $34.74 / $35.08
- Shares Outstanding
- 224.87M
- Market Cap
- $7.90B
- Volume/Avg
- 49 / 1M
Key Statistics
- Price/Earnings (Normalized)
- 18.69
- Price/Sales
- 3.05
- Dividend Yield (Trailing)
- 0.00%
- Dividend Yield (Forward)
- 0.00%
- Dividend Payment Schedule
- —
- Total Yield
- 14.24%
Company Profile
Founded in 2006, Zillow Group is a leading online real estate marketplace connecting consumers, agents, property managers, and lenders across the residential housing lifecycle. The company is composed of three core segments: residential, which monetizes home-buyer and seller traffic through a mix of upfront advertising and success-based referral fees tied to agent commissions; rentals, which serves property managers and landlords through multifamily and single-family listing syndication; and mortgages, operated through Zillow Home Loans, which originates purchase financing for consumers sourced from its platform. The company generated approximately $2.58 billion in revenue for the full year of 2025.
- Sector
- Communication Services
- Industry
- Internet Content & Information
- Stock Style Box
- Small Core
- Total Number of Employees
- 7,232
- Website
- https://www.zillowgroup.com
Competitors
Valuation
|
Metric
|
ZG
|
CSGP
|
RKT
|
|---|---|---|---|
Price/Earnings (Normalized) | 18.69 | 32.54 | 23.97 |
Price/Book Value | 1.83 | 1.81 | 1.41 |
Price/Sales | 3.05 | 4.16 | 3.49 |
Price/Cash Flow | 12.13 | 17.06 | — |
Price/Earnings
ZG
CSGP
RKT
Financial Strength
|
Metric
|
ZG
|
CSGP
|
RKT
|
|---|---|---|---|
Quick Ratio | 0.95 | 2.06 | — |
Current Ratio | 1.92 | 2.21 | — |
Interest Coverage | 4.33 | — | — |
Quick Ratio
ZG
CSGP
RKT
Profitability
|
Metric
|
ZG
|
CSGP
|
RKT
|
|---|---|---|---|
Return on Assets (Normalized) | 7.73% | 4.31% | 2.73% |
Return on Equity (Normalized) | 9.05% | 5.43% | 7.77% |
Return on Invested Capital (Normalized) | 8.62% | 4.38% | — |
Return on Assets
ZG
CSGP
RKT
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United States