Upside case
Bull case
—
The bull case requires both strong earnings delivery and the market pricing Z more generously than it does today.
Analysis OverviewHoldUpdated May 1, 2026
Zillow Group, Inc. Class C (Z) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
46
analysts
21 bullish · 2 bearish · 46 covering Z
Strong Buy
0
Buy
21
Hold
23
Sell
2
Strong Sell
0
Consensus Target
$80
+83.7% vs today
Scenario Range
$15 – —
Model bear to bull value window
Coverage
46
Published analyst ratings
Valuation Context
19.7x
Forward P/E · Market cap $10.5B
Z price targets
Three scenarios for where Z stock could go
Current
~$44
Confidence
43 / 100
Updated
May 1, 2026
Where we are now
Current · $44
Bear
$15
Base
$43
Market caseClosest to today
Base case
$43-0.7%
This is close to how the market is already pricing Z — at roughly 20x forward earnings. No dramatic re-rating needed, just steady execution on the core business.
Stress case
Bear case
$15-65.5%
If investor confidence fades or macro conditions deteriorate, a 13x multiple contraction could push Z down roughly 66% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Zillow Group, Inc. Class C
Z · NASDAQCommunication ServicesInternet Content & InformationDecember year-end
Zillow Group is a digital real estate marketplace that connects home buyers, sellers, renters, and real estate professionals through its platform. It generates revenue primarily from real estate agent advertising and services (its IMT segment), home flipping operations (its Homes segment), and mortgage origination services. The company's key advantage is its massive network effect—with the most comprehensive property database and the largest audience of real estate consumers in the U.S., which attracts more agents and listings in a virtuous cycle.
Market Cap
$10.5B
Revenue TTM
$2.5B
Net Income TTM
-$32M
Net Margin
-1.3%
Z Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
75%Exceptional
12 quarters tracked
Revenue Beat Rate
100%Exceptional
vs consensus estimates
Avg EPS Surprise
+41.5%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 2 of 4Q2 2025
EPS
$0.41/$0.37
Revenue
$598M/$589M
Q3 2025
EPS
$0.40/$0.42
Revenue
$655M/$648M
Q4 2025
EPS
$0.44/$0.43
Revenue
$676M/$671M
Q1 2026
EPS
$0.39/$0.42
Revenue
$654M/$650M
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $0.41/$0.37 | +10.9% | $598M/$589M | +1.5% |
| Q3 2025 | $0.40/$0.42 | -5.6% | $655M/$648M | +1.1% |
| Q4 2025 | $0.44/$0.43 | +2.8% | $676M/$671M | +0.8% |
| Q1 2026 | $0.39/$0.42 | -7.1% | $654M/$650M | +0.5% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$2.8B
+14.1% YoY
FY2
$3.2B
+12.4% YoY
EPS Outlook
FY1
$0.43
+442.9% YoY
FY2
$0.54
+26.2% YoY
Trailing FCF (TTM)$264M
FCF Margin: 10.6%
Next Earnings
May 6, 2026
Expected EPS
$0.43
Expected Revenue
$705M
Z beat EPS estimates in 2 of 4 tracked quarters. Mixed delivery makes the upcoming report a key data point for re-rating.
Z Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $4.2B
Product Mix
Latest annual revenue by segment or product family
Sales Revenue
44.9%
+9.4% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Sales Revenue is the largest disclosed segment at 44.9% of FY 2025 revenue, up 9.4% YoY.
Z Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Overvalued
Fair value est. $38 — implies -17.1% from today's price.
Premium to Fair Value
17.1%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
Z
483.8x
vs
S&P 500
25.1x
+1827% premium
vs Communication Services Trailing P/E
Z
483.8x
vs
Communication Services
15.0x
+3136% premium
vs Z 5Y Avg P/E
Today
483.8x
vs
5Y Average
—
Benchmark unavailable
Forward PE
19.7x
S&P 500
19.1x
+3%
Communication Services
13.0x
+51%
5Y Avg
—
—
Trailing PE
483.8x
S&P 500
25.1x
+1827%
Communication Services
15.0x
+3136%
5Y Avg
—
—
PEG Ratio
—
S&P 500
1.72x
—
Communication Services
0.74x
—
5Y Avg
—
—
EV/EBITDA
—
S&P 500
15.2x
—
Communication Services
8.4x
—
5Y Avg
66.6x
—
Price/FCF
44.5x
S&P 500
21.1x
+111%
Communication Services
11.8x
+279%
5Y Avg
52.0x
-14%
Price/Sales
4.1x
S&P 500
3.1x
+30%
Communication Services
1.0x
+315%
5Y Avg
6.6x
-38%
Dividend Yield
—
S&P 500
1.87%
—
Communication Services
3.45%
—
5Y Avg
—
—
| Metric | Z | S&P 500 | Communication Services | 5Y Avg Z |
|---|---|---|---|---|
| Forward PE | 19.7x | 19.1x | 13.0x+51% | — |
| Trailing PE | 483.8x | 25.1x+1827% | 15.0x+3136% | — |
| PEG Ratio | — | 1.72x | 0.74x | — |
| EV/EBITDA | — | 15.2x | 8.4x | 66.6x |
| Price/FCF | 44.5x | 21.1x+111% | 11.8x+279% | 52.0x-14% |
| Price/Sales | 4.1x | 3.1x+30% | 1.0x+315% | 6.6x-38% |
| Dividend Yield | — | 1.87% | 3.45% | — |
Z trades above S&P 500 benchmarks on 3 of 4 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolZ Financial Health
Verdict
Stressed
Z generates $264M in free cash flow at a 10.6% margin — returns 6.4% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$2.5B
Revenue Growth
TTM vs prior year
+15.2%
Gross Margin
Gross profit as a share of revenue
74.9%
Operating Margin
Operating income divided by revenue
-3.7%
Net Margin
Net income divided by revenue
-1.3%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$-0.12
Free Cash Flow (TTM)
Cash generation after capex
$264M
FCF Margin
FCF as share of revenue — the primary cash quality signal
10.6%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
-0.6%
ROA
Return on assets, trailing twelve months
-0.6%
Cash & Equivalents
Liquid assets on the balance sheet
$768M
Net Cash
Cash exceeds total debt — no net leverage
$675M
Debt Serviceability
Net debt as a multiple of annual free cash flow
Net cash ✓
ROE *
Return on equity, trailing twelve months
-0.6%
* Elevated by buyback-compressed equity — compare ROIC (-0.6%) for an undistorted picture of capital efficiency.
Shareholder Returns
How capital is returned to owners
Total shareholder yield
6.4%
Dividend
—
Buyback
6.4%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$670M
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Declining as buybacks retire shares
254M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt). ROE marked * where buyback-compressed equity base may inflate the figure.
Open full ratios pageZ Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
High Valuation Metrics
Zillow's stock is currently trading at a very high valuation, with a P/E multiple of -416.3 and a P/EBIT multiple of -1665.1. This suggests that the stock may be significantly overvalued, posing a substantial risk for investors.
High Risk
Housing Market Sensitivity
Zillow's business is heavily tied to the real estate market, and a slow housing market, exacerbated by high interest rates and elevated home prices, can lead to a severe deceleration in revenue growth. This sensitivity to market conditions poses a high risk to the company's financial performance.
High Risk
Economic Downturn Performance
Zillow's stock has historically underperformed the S&P 500 during economic downturns, experiencing declines of 86.5% during the 2022 inflation shock and 61.5% during the 2020 COVID-19 pandemic. Such performance during economic stress indicates a high risk for investors.
Medium
Operational Dependence on Agents
Zillow's reliance on its Premier Agent program presents a risk, as changes in this segment can significantly impact overall revenue. Any shifts in market dynamics affecting this program could lead to revenue volatility.
Medium
Legal and Regulatory Challenges
Zillow is facing growing legal concerns and allegations of deceptive consumer practices, which have put pressure on its stock. The company has also faced lawsuits, highlighting potential legal entanglements that could affect its operations and financial standing.
Medium
Market Volatility
Zillow's stock has experienced significant volatility, with a beta value of 2.10 indicating it tends to be more volatile than the overall market. This inherent market risk can lead to unpredictable stock performance.
Lower
Insider Selling Trends
There has been significant insider selling of Zillow stock over the past three months, which can be perceived as a bearish signal for investors. Such trends may indicate a lack of confidence from insiders regarding the company's future performance.
Lower
Mixed Analyst Sentiment
While some analysts have upgraded Zillow to a 'Buy' rating, others maintain a 'Hold' rating due to risks like a slow housing market and commission pressure. The consensus analyst rating is currently 'Hold', reflecting uncertainty in investor sentiment.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why Z Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Strong Market Position and Traffic
Zillow remains the go-to platform for real estate research, attracting unprecedented traffic with billions of site visits annually. This dominant position provides a sturdy foundation for its various business segments.
Revenue and Earnings Growth
Analysts project significant growth for Zillow, with earnings expected to increase by 38% per year and revenue by 12.1% annually. Non-GAAP net income is projected to rise from $319 million in 2023 to $690 million by 2027, a compound annual growth rate (CAGR) of 26%.
Diversified Revenue Streams
Growth in rentals and mortgage revenue is offsetting softness in the Premier Agent segment. Rentals and mortgage revenue now account for over a quarter of Zillow's total revenue and are growing robustly, with multifamily revenue projected to grow by 60% in the coming years.
Strategic Capital Allocation
Zillow has expanded its share repurchase authorization, demonstrating management's confidence and returning value to shareholders. A $1.25 billion buyback program was authorized, representing a significant portion of the company's market cap.
Improving Housing Market Conditions
Recent data suggests improving housing affordability due to lower mortgage rates and higher incomes, which could boost transaction activity and benefit Zillow's marketplaces, rentals, and mortgage offerings.
Legal and Strategic Wins
The dropping of a lawsuit by Compass has removed a major uncertainty and reinforced Zillow's dominant position in real estate search.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
Z Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$43.54
52W Range Position
8%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$39.05
+11.5% from the low
52-Week High
$93.88
-53.6% from the high
1 Month
+4.54%
3 Month
-19.39%
YTD
-34.0%
1 Year
-36.1%
3Y CAGR
-3.7%
5Y CAGR
-17.5%
10Y CAGR
+5.0%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
Z vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
19.7x
vs 67.1x median
-71% below peer median
Revenue Growth
+14.1%
vs -1.2% median
+1295% above peer median
Net Margin
-1.3%
vs -2.2% median
+41% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
Z Z Zillow Group, Inc. Class C | $10.5B | 19.7x | +14.1% | -1.3% | Hold | +83.7% |
OPE OPEN Opendoor Technologies Inc. | $5.0B | — | -13.8% | -29.7% | Hold | +24.3% |
HOU HOUS Anywhere Real Estate Inc. | $2.0B | — | -1.2% | -2.2% | Hold | +7.7% |
EXP EXPI eXp World Holdings, Inc. | $1.0B | 89.7x | +6.5% | -0.5% | Buy | +75.2% |
COM COMP Compass, Inc. | $4.1B | 44.4x | +57.7% | 0.2% | Buy | +96.8% |
MOV MOVE Movano Inc. | $816M | — | -44.6% | -3409.6% | Buy | — |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
Z Dividend and Capital Return
Z returns 6.4% annually — null% through dividends and 6.4% through buybacks.
Dividend UnknownFCF Unknown
Total Shareholder Yield
6.4%
Dividend + buyback return per year
Buyback Yield
6.4%
Dividend Yield
—
Payout Ratio
—
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.00
Growth Streak
Consecutive years of dividend increases
0Y
3Y Div CAGR
—
5Y Div CAGR
—
Ex-Dividend Date
—
Payment Cadence
—
0 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$670M
Estimated Shares Retired
15M
Approx. Share Reduction
6.1%
Shares Outstanding
Current diluted share count from the screening snapshot
254M
At 6.1%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
FAQ
7 questionsZ Investor Questions
Common questions answered from live analyst data and company financials.
01Is Zillow Group, Inc. Class C (Z) stock a buy or sell in 2026?
Zillow Group, Inc. Class C (Z) is rated Hold by Wall Street analysts as of 2026. Of 46 analysts covering the stock, 21 rate it Buy or Strong Buy, 23 rate it Hold, and 2 rate it Sell or Strong Sell. The consensus 12-month price target is $80, implying +83.7% from the current price of $44.
02What is the Z stock price target for 2026?
The Wall Street consensus price target for Z is $80 based on 46 analyst estimates. The high-end target is $80 (+83.7% from today), and the low-end target is $80 (+83.7%). The base case model target is $43.
03Is Zillow Group, Inc. Class C (Z) stock overvalued in 2026?
Z trades at 19.7x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals overvalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Zillow Group, Inc. Class C (Z) stock in 2026?
The primary risks for Z in 2026 are: (1) High Valuation Metrics — Zillow's stock is currently trading at a very high valuation, with a P/E multiple of -416. (2) Housing Market Sensitivity — Zillow's business is heavily tied to the real estate market, and a slow housing market, exacerbated by high interest rates and elevated home prices, can lead to a severe deceleration in revenue growth. (3) Economic Downturn Performance — Zillow's stock has historically underperformed the S&P 500 during economic downturns, experiencing declines of 86. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Zillow Group, Inc. Class C's revenue and earnings forecast?
Analyst consensus estimates Z will report consensus revenue of $2.8B (+14.1% year-over-year) and EPS of $0.43 (+442.9% year-over-year) for the upcoming fiscal year. The following year, analysts project $3.2B in revenue.
06When does Zillow Group, Inc. Class C (Z) report its next earnings?
Zillow Group, Inc. Class C is expected to report its next earnings on approximately 2026-05-06. Consensus expects EPS of $0.43 and revenue of $705M. Over recent quarters, Z has beaten EPS estimates 75% of the time.
07How much free cash flow does Zillow Group, Inc. Class C generate?
Zillow Group, Inc. Class C (Z) generated $264M in free cash flow over the trailing twelve months — a free cash flow margin of 10.6%. Z returns capital to shareholders through and share repurchases ($670M TTM).