Zillow Group, Inc. engages in the provision of real estate and home-related information marketplaces on mobile and the web. It operates through the following segments: Internet, Media & Technology (IMT), Homes and Mortgages segment. The IMT segment includes premier agent, rentals and new construction marketplaces, as well as dotloop, display and other advertising and business software solutions. The Homes segment includes Zillow Group's buying and selling of homes directly. The Mortgages segment includes advertising sold to mortgage lenders and other mortgage professionals, mortgage originations through MLOA and the sale of mortgages on the secondary market, as well as Mortech mortgage software solutions. The company was founded by Richard N. Barton and Lloyd D. Frink on July 25, 2014 and is headquartered in Seattle, WA.
Z Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Zillow Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Zillow Group Inc ranked in the 65th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 130.5%. As for the metrics that stood out in our discounted cash flow analysis of Zillow Group Inc, consider:
The compound growth rate in the free cash flow of Zillow Group Inc over the past 5.47 years is 0.84%; that's higher than 85.92% of free cash flow generating stocks in the Technology sector.
The business' balance sheet suggests that 10% of the company's capital is sourced from debt; this is greater than only 22.92% of the free cash flow producing stocks we're observing.
Zillow Group Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.99. This coverage rate is greater than that of just 16.83% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CIEN, DGII, HCKT, VRTU, and FORM can be thought of as valuation peers to Z, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
This past July 17, I compared my favorite long idea, Farmer Mac (AGM), to my favorite short idea, Redfin. Today I revisit that theme, with one adjustment – I replace Redfin (RDFN) with Zillow (Z), another stock I’ve suggested shorting, and which has pulled even with Redfin as my favorite...
SAN FRANCISCO , Oct. 1, 2020 /PRNewswire/ -- Pacaso, a company that creates a more accessible category of second home ownership, launched today. Pacaso's chairman is Zillow co-founder and former CEO Spencer Rascoff ; its CEO is dotloop founder and former Zillow executive Austin Allison . As people rethink how and where they want to live during and after Covid-19, Pacaso offers the best way to buy and own a second home. Pacaso modernizes the generations-old practice of co-owning a second home, creating a marketplace that makes buying and selling easy, and adding professional management and technology to make scheduling dates and owning the home seamless and simple. Buyers considering a second home can tell Pacaso where they want to buy, how much they want to spend and how much time they ...
CHICAGO , Sept. 29, 2020 /PRNewswire/ -- @properties, which was founded in 2000 and quickly grew into the largest residential brokerage firm in Chicago and its surrounding areas, announced today that it is launching a national franchise brand to offer broker-owners and agents access to the technology, marketing, training and business-development systems that have made it one of the top 10 brokerage firms in the country as an independent. @properties co-founders and co-CEOs, Thad Wong and Mike Golden made the announcement. The move comes at a time when the real estate industry not only is adapting to the new challenges and opportunities of the COVID-19 pandemic, but is also being disrupted by a number of other forces including VC- and public-markets-driven consolidation, iBuyer services,...
Serial entrepreneur Spencer Rascoff announced plans to launch a SPAC on Friday. The Management Team: Supernova Partners Acquisition Company (NYSE: SPNV ) was formed by Spencer Rascoff, Alexander Klabin, Robert Reid and Michael Clifton. Spencer Rascoff will serve as the co-chairman of this SPAC. Rascoff is the co-founder of Zillow Group (NASDAQ: Z ), Hotwire and dotLA. Rascoff served as the CEO of Zillow for over 10 years where he led the company through … Full story available on Benzinga.com