Latest Ratios: P/E Ratio 73.9x · EV/EBITDA 13.5x · ROE 11.6%. (2010–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.0B | $1.8B | $1.4B | $2.2B | $1.5B | $3.2B | — | — | — | — |
| Enterprise Value | $836M | $1.7B | $1.2B | $2.0B | $1.3B | $2.9B | — | — | — | — |
| P/E Ratio → | 73.88 | 124.13 | 46.94 | 157.38 | — | — | — | — | — | — |
| P/S Ratio | 1.34 | 2.43 | 2.01 | 3.32 | 2.44 | 5.54 | — | — | — | — |
| P/B Ratio | 6.35 | 10.67 | 14.73 | 13.01 | 10.65 | 16.11 | — | — | — | — |
| P/FCF | 6.86 | 12.40 | 13.74 | 23.70 | 29.30 | 75.05 | — | — | — | — |
| P/OCF | 5.69 | 10.29 | 10.12 | 17.67 | 20.53 | 58.78 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.19 | 1.82 | 3.00 | 2.16 | 5.12 | — | — | — | — |
| EV / EBITDA | 13.53 | 26.80 | 17.06 | 40.30 | — | — | — | — | — | — |
| EV / EBIT | 58.19 | 49.07 | 28.47 | 61.91 | — | — | — | — | — | — |
| EV / FCF | — | 11.19 | 12.40 | 21.36 | 25.86 | 69.41 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 65.9% | 65.9% | 64.8% | 63.8% | 66.0% | 67.1% | 67.2% | 66.5% | 48.5% | 49.8% |
| Operating Margin | 1.9% | 1.9% | 5.2% | 3.2% | -6.7% | -14.8% | 10.4% | 15.5% | 4.0% | -3.1% |
| Net Profit Margin | 2.0% | 2.0% | 4.4% | 2.1% | -7.9% | -18.9% | 2.1% | 1.8% | 7.8% | -3.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.6% | 11.6% | 22.9% | 9.0% | -28.7% | -55.0% | — | — | — | — |
| ROA | 3.4% | 3.4% | 7.3% | 3.3% | -11.7% | -31.8% | 4.4% | 5.9% | 27.2% | -11.3% |
| ROIC | — | — | — | — | — | — | — | — | — | — |
| ROCE | 9.0% | 9.0% | 24.4% | 12.4% | -23.3% | -66.9% | 104.8% | 243.5% | 80.6% | -75.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.14 | 0.14 | 0.08 | 0.05 | 0.08 | — | — | — | — | — |
| Debt / EBITDA | 0.39 | 0.39 | 0.11 | 0.18 | — | — | 7.47 | 6.52 | 0.02 | — |
| Net Debt / Equity | — | -1.04 | -1.44 | -1.28 | -1.25 | -1.21 | — | — | — | — |
| Net Debt / EBITDA | -2.89 | -2.89 | -1.85 | -4.41 | — | — | 5.81 | 5.90 | -2.48 | — |
| Debt / FCF | — | -1.21 | -1.34 | -2.34 | -3.44 | -5.64 | 4.86 | 13.66 | -3.76 | — |
| Interest Coverage | 26.07 | 26.07 | 97.60 | 64.88 | -182.36 | -3.27 | 1.46 | 1.27 | 41.03 | -248.47 |
Net cash position: cash ($203M) exceeds total debt ($24M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.75 | 0.75 | 0.72 | 1.04 | 0.97 | 1.16 | 0.67 | 0.44 | 0.95 | 0.81 |
| Quick Ratio | 0.75 | 0.75 | 0.72 | 1.04 | 0.97 | 1.10 | 0.67 | 0.44 | 0.95 | 0.81 |
| Cash Ratio | 0.64 | 0.64 | 0.53 | 0.86 | 0.76 | 1.05 | 0.57 | 0.31 | 0.63 | 0.62 |
| Asset Turnover | — | 1.42 | 1.82 | 1.48 | 1.53 | 1.33 | 1.87 | 2.04 | 2.92 | 3.39 |
| Inventory Turnover | — | — | — | — | — | 13.92 | — | — | — | — |
| Days Sales Outstanding | — | 11.51 | 6.54 | 6.50 | 8.21 | 6.75 | 6.63 | 9.09 | 8.54 | 6.54 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | 0.0% | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | 2.9% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.4% | 0.8% | 2.1% | 0.6% | — | — | — | — | — | — |
| FCF Yield | 14.6% | 8.1% | 7.3% | 4.2% | 3.4% | 1.3% | — | — | — | — |
| Buyback Yield | 7.9% | 4.4% | 12.0% | 2.5% | 6.3% | 0.0% | — | — | — | — |
| Total Shareholder Yield | 7.9% | 4.4% | 12.0% | 2.5% | 6.3% | 0.0% | — | — | — | — |
| Shares Outstanding | — | $185M | $183M | $194M | $196M | $198M | $197M | $125M | $125M | $125M |
Includes 30+ ratios · 9 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying LZ stock.
LegalZoom.com, Inc.'s current P/E ratio is 73.9x. The historical average is 109.5x. This places it at the 33th percentile of its historical range.
LegalZoom.com, Inc.'s current EV/EBITDA is 13.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 28.1x.
LegalZoom.com, Inc.'s return on equity (ROE) is 11.6%. The historical average is -8.0%.
Based on historical data, LegalZoom.com, Inc. is trading at a P/E of 73.9x. This is at the 33th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
LegalZoom.com, Inc. has 65.9% gross margin and 1.9% operating margin.
LegalZoom.com, Inc.'s Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Margin compression and demand deceleration
Metrics are mathematically derived from official filings.
Gross Margin Resilience Masks Operating Strain
Gross margin improved to 68.2% in 2026Q2 from 64.0% in 2026Q1, yet operating margin remains thin at 5.2%, reflecting high fixed costs. As reported in financial statements, the gap highlights structural inefficiencies.
The 4.2 percentage point sequential gross margin expansion suggests pricing power or mix shift toward higher-margin subscriptions, but the operating margin of 5.2% indicates that SG&A expenses, which represent 53% of revenue, are absorbing most of the gross profit. This implies that the company's cost structure is not yet optimized for scale, and any revenue deceleration could compress margins further. Investors should monitor whether the gross margin improvement is sustainable or a one-time benefit from pass-through fee adjustments.
Working Capital Efficiency Shows Mixed Signals
DSO rose to 13 days in 2026Q2 from 8 days in 2025Q1, while DPO increased to 52 days, indicating improved supplier leverage. Based on reported figures, the cash conversion cycle remains negative, suggesting efficient working capital management.
The increase in DSO suggests slower collections, possibly due to a shift in customer mix or payment terms, but the concurrent rise in DPO to 52 days indicates that LegalZoom is stretching payables, which may reflect negotiating power with suppliers. The negative CCC, driven by high DPO, implies that the company is funding its operations with supplier credit, which is favorable for cash flow. However, the lack of DIO data limits a full assessment of inventory efficiency, though the digital nature of the business likely minimizes inventory needs.
Minimal Leverage Masks Refinancing Flexibility
Debt-to-equity rose to 0.12 in 2026Q2 from 0.07 in 2025Q3, but total debt of $15.1M remains modest against $167.2M cash. According to recent SEC filings, interest coverage of 97.41 indicates comfortable debt service.
The increase in leverage is marginal and remains well below industry norms, suggesting that LegalZoom has significant borrowing capacity if needed. Interest coverage of 97.41 in 2026Q2, though down from 268.82 in 2024Q3, still indicates that earnings before interest and taxes are ample to cover interest expenses. The low D/EBITDA of 0.66 further underscores the company's conservative capital structure. However, the declining cash balance from $203M to $167.2M over the past two quarters warrants monitoring, as it may indicate increased cash consumption for buybacks or operations.
Liquidity Tightens Below Comfortable Levels
Current ratio fell to 0.67 in 2026Q2 from 0.75 in 2025Q4, while cash dropped to $167.2M, suggesting a tightening liquidity position. As reported in financial statements, the quick ratio of 0.67 indicates potential stress under severe conditions.
A current ratio below 1.0 implies that current liabilities exceed current assets, which could signal liquidity risk if the company faces a sudden cash crunch. The quick ratio, which excludes inventory, is identical at 0.67, indicating that the company relies heavily on cash and receivables to meet short-term obligations. While the company has minimal debt and a strong cash position relative to debt, the declining current ratio over the past year suggests that management is deploying cash aggressively, possibly into buybacks or acquisitions. Investors should monitor whether this trend continues and whether the company can maintain adequate liquidity to fund operations and growth initiatives.
Valuation Gap Reflects Growth Expectations
LegalZoom trades at a forward P/E of 7.59 versus Upwork's 10.22, but its EV/EBITDA of 12.72 is higher than Upwork's 7.45. Based on reported figures, the market appears to price LZ as a growth story despite strained profitability.
The low forward P/E suggests that the market expects earnings to recover significantly, possibly due to the CTA-driven compliance demand, but the high EV/EBITDA relative to peers like Upwork indicates that the market is paying a premium for EBITDA growth. LegalZoom's ROE of 3.8% in 2026Q2 is far below Upwork's 16.7%, highlighting a profitability gap that may be temporary if the company can scale its subscription model. The PEG ratio of 4.20 implies that the market is pricing in high growth, but the recent guidance cut and EPS miss suggest that growth may be decelerating, making the valuation appear stretched.
Misapplied Metric: EV/EBITDA
EV/EBITDA is commonly misapplied to LegalZoom because its EBITDA is inflated by stock-based compensation, which is a real economic cost. According to financial disclosures, SBC of $23.6M in 2026Q2 exceeds net income, distorting the multiple.
The EV/EBITDA multiple of 12.72 appears reasonable, but when adjusted for SBC, the true cash earnings power is significantly lower. Since SBC is a non-cash charge that dilutes shareholders, using EV/EBITDA without adjustment overstates the company's valuation attractiveness. A more appropriate metric would be EV/EBIT or EV/EBITDA minus SBC, which would likely show a much higher multiple, indicating that the stock is not as cheap as it appears. Investors should also consider the impact of deferred revenue and pass-through costs, which can distort revenue and EBITDA, making cash flow-based metrics like P/FCF more reliable.