LegalZoom.com, Inc. (LZ) Financial Ratios
16 years of historical data (2010–2025) · Industrials · Specialty Business Services
EV/EBITDA
↓
12.86
↓-54% vs avg
5yr avg: 28.05
30Y Low17.1·High40.3
P/FCF
↓
6.58
↓-79% vs avg
5yr avg: 30.84
30Y Low12.4·High75.1
P/B Ratio
↓
6.09
↓-53% vs avg
5yr avg: 13.03
30Y Low10.6·High16.1
ROE
↑
11.6%
↓+245% vs avg
5yr avg: -8.0%
30Y Low-55%·High23%
Debt/EBITDA
↑
0.39
↑+72% vs avg
5yr avg: 0.23
30Y Low0.0·High7.5
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
LZ Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
LegalZoom.com, Inc. trades at 70.9x earnings, 35% below its 5-year average of 109.5x, sitting at the 33rd percentile of its historical range. Compared to the Industrials sector median P/E of 25.4x, the stock trades at a premium of 179%. On a free-cash-flow basis, the stock trades at 6.6x P/FCF, 79% below the 5-year average of 30.8x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $973M | $1.8B | $1.4B | $2.2B | $1.5B | $3.2B | — | — | — | — |
| Enterprise Value | $795M | $1.7B | $1.2B | $2.0B | $1.3B | $2.9B | — | — | — | — |
| P/E Ratio → | 70.88 | 124.13 | 46.94 | 157.38 | — | — | — | — | — | — |
| P/S Ratio | 1.29 | 2.43 | 2.01 | 3.32 | 2.44 | 5.54 | — | — | — | — |
| P/B Ratio | 6.09 | 10.67 | 14.73 | 13.01 | 10.65 | 16.11 | — | — | — | — |
| P/FCF | 6.58 | 12.40 | 13.74 | 23.70 | 29.30 | 75.05 | — | — | — | — |
| P/OCF | 5.46 | 10.29 | 10.12 | 17.67 | 20.53 | 58.78 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
LZ EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
LegalZoom.com, Inc.'s enterprise value stands at 12.9x EBITDA, 54% below its 5-year average of 28.1x. The Industrials sector median is 13.8x, placing the stock at a 7% discount on an enterprise-value basis.
| 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 | 12.86 | 26.80 | 17.06 | 40.30 | — | — | — | — | — | — |
| EV / EBIT | 55.32 | 49.07 | 28.47 | 61.91 | — | — | — | — | — | — |
| EV / FCF | — | 11.19 | 12.40 | 21.36 | 25.86 | 69.41 | — | — | — | — |
LZ Profitability
Margins and return-on-capital ratios measuring operating efficiency
LegalZoom.com, Inc. earns an operating margin of 1.9%, below the Industrials sector average of 4.1%. Operating margins have compressed from 3.2% to 1.9% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 11.6% is modest.
Margins
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% |
Return on Capital
| 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% |
LZ Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
LegalZoom.com, Inc. carries a Debt/EBITDA ratio of 0.4x, which is very conservative (88% below the sector average of 3.2x). The company holds a net cash position — cash of $203M exceeds total debt of $24M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of 26.1x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| 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)
LZ Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.75x is below 1.0, meaning current liabilities exceed current assets. The current ratio has declined from 1.04x to 0.75x over the past 3 years.
| 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 |
LZ Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
LegalZoom.com, Inc. returns 8.3% to shareholders annually primarily through share buybacks. The earnings yield of 1.4% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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% | — | — | — |
Total Shareholder Return Metrics
| 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 | 15.2% | 8.1% | 7.3% | 4.2% | 3.4% | 1.3% | — | — | — | — |
| Buyback Yield | 8.3% | 4.4% | 12.0% | 2.5% | 6.3% | 0.0% | — | — | — | — |
| Total Shareholder Yield | 8.3% | 4.4% | 12.0% | 2.5% | 6.3% | 0.0% | — | — | — | — |
| Shares Outstanding | — | $185M | $183M | $194M | $196M | $198M | $197M | $125M | $125M | $125M |
Peer Comparison
Compare LZ with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 LZYou | $973M | 70.9 | 12.9 | 6.6 | 65.9% | 1.9% | 11.6% | — | 0.4 |
 UPWK | $1B | 9.9 | 7.2 | 4.2 | 77.8% | 16.4% | 19.1% | 14.3% | 2.5 |
 RELY | $4B | 65.8 | 37.2 | 14.5 | 57.1% | 5.0% | 8.9% | 14.2% | 2.1 |
 AFRM | $24B | 478.9 | 220.8 | 39.8 | 67.5% | -2.7% | 1.8% | -0.7% | 57.0 |
 CLST | $67M | 29.4 | 19.2 | 21.5 | 72.8% | 16.3% | 2.5% | 2.0% | 5.0 |
 INTU | $71B | 18.9 | 13.0 | 11.6 | 80.8% | 26.1% | 20.3% | 16.5% | 1.2 |
 HRB | $5B | 8.2 | 6.2 | 7.6 | 44.5% | 22.0% | 675.0% | 46.4% | 2.5 |
 CPRT | $27B | 18.6 | 12.9 | 22.3 | 45.2% | 36.5% | 18.5% | 20.1% | 0.1 |
 CSGP | $13B | 1822.9 | 72.0 | 312.8 | 75.2% | -2.2% | 0.1% | -0.9% | 6.7 |
 DOCN | $16B | 62.4 | 57.3 | 96.7 | 59.9% | 17.4% | — | 15.6% | 2.5 |
 DOCU | $8B | 28.8 | 14.7 | 7.7 | 79.4% | 9.3% | 15.8% | 15.0% | 0.4 |
| Industrials Median | — | 25.4 | 13.8 | 20.0 | 31.7% | 4.1% | 7.9% | 6.1% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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LZ — Frequently Asked Questions
Quick answers to the most common questions about buying LZ stock.
What is LegalZoom.com, Inc.'s P/E ratio?
LegalZoom.com, Inc.'s current P/E ratio is 70.9x. The historical average is 109.5x. This places it at the 33th percentile of its historical range.
What is LegalZoom.com, Inc.'s EV/EBITDA?
LegalZoom.com, Inc.'s current EV/EBITDA is 12.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 28.1x.
What is LegalZoom.com, Inc.'s ROE?
LegalZoom.com, Inc.'s return on equity (ROE) is 11.6%. The historical average is -8.0%.
Is LZ stock overvalued?
Based on historical data, LegalZoom.com, Inc. is trading at a P/E of 70.9x. This is at the 33th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are LegalZoom.com, Inc.'s profit margins?
LegalZoom.com, Inc. has 65.9% gross margin and 1.9% operating margin.
How much debt does LegalZoom.com, Inc. have?
LegalZoom.com, Inc.'s Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.