Zillow Group shares have fallen about 71% over the past five years, yet the stock still screens as expensive rather than a bargain. The company trades at roughly 125.4 times earnings, far above the Real Estate industry average of 24.6 times and a peer average of 28.7 times. A fair P/E ratio implied by the model is 40.1 times, and the large gap to the current multiple suggests Zillow Group is overvalued on this metric, with the model penalizing the company's risk profile and earnings quality. Ongoing securities fraud and antitrust litigation may weigh on investor sentiment, while product moves such as a new personalized home buying hub support growth expectations. Overall, Zillow Group passes only 2 of 6 valuation checks, pointing to a rich price that leaves little room for disappointment.
Zillow Group Inc Class CStock trades at 125.4x earnings vs industry 24.6x, model implies fair P/E of 40.1x, indicating overvaluation.