LegalZoom Valuation

LZ Stock  USD 7.83  0.07  0.90%   
At this time, the firm appears to be undervalued. LegalZoom secures a last-minute Real Value of $9.5 per share. The latest price of the firm is $7.83. Our model forecasts the value of LegalZoom from analyzing the firm fundamentals such as Current Valuation of 1.24 B, return on equity of 0.24, and Profit Margin of 0.04 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting LegalZoom's valuation include:
Price Book
22.3004
Enterprise Value
1.2 B
Enterprise Value Ebitda
16.1121
Price Sales
1.9756
Forward PE
27.248
Undervalued
Today
7.83
Please note that LegalZoom's price fluctuation is somewhat reliable at this time. Calculation of the real value of LegalZoom is based on 3 months time horizon. Increasing LegalZoom's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since LegalZoom is currently traded on the exchange, buyers and sellers on that exchange determine the market value of LegalZoom Stock. However, LegalZoom's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  7.83 Real  9.5 Target  14.61 Hype  7.89 Naive  7.03
The intrinsic value of LegalZoom's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence LegalZoom's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
9.50
Real Value
12.30
Upside
Estimating the potential upside or downside of LegalZoom helps investors to forecast how LegalZoom stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of LegalZoom more accurately as focusing exclusively on LegalZoom's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.120.130.14
Details
Hype
Prediction
LowEstimatedHigh
5.097.8910.69
Details
Naive
Forecast
LowNext ValueHigh
4.247.039.83
Details
9 Analysts
Consensus
LowTarget PriceHigh
13.3014.6116.22
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use LegalZoom's intrinsic value based on its ongoing forecasts of LegalZoom's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against LegalZoom's closest peers.

LegalZoom Cash

135.78 Million

LegalZoom Valuation Trend

Analysing the historical paterns of LegalZoom's enterprise value and its market capitalization is a good way to estimate and gauge the value of LegalZoom over time and is usually enough for investors to make rational market timing decisions.

LegalZoom Revenue by Product

LegalZoom Total Value Analysis

LegalZoom is now forecasted to have takeover value of 1.24 B with market capitalization of 1.34 B, debt of 9.02 M, and cash on hands of 211.81 M. Please note that takeover value may be misleading and is a subject to accounting mistakes. We encourage investors to methodically examine all of the LegalZoom fundamentals before making investment evaluation based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
1.24 B
1.34 B
9.02 M
211.81 M

LegalZoom Investor Information

About 83.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 0.55. LegalZoom had not issued any dividends in recent years. Based on the analysis of LegalZoom's profitability, liquidity, and operating efficiency, LegalZoom is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in December.
Current ValueLast YearChange From Last Year 10 Year Trend
Total Cash From Operating Activities64.9 M124.3 M
Way Down
Slightly volatile

LegalZoom Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. LegalZoom has an asset utilization ratio of 147.54 percent. This suggests that the Company is making $1.48 for each dollar of assets. An increasing asset utilization means that LegalZoom is more efficient with each dollar of assets it utilizes for everyday operations.
 
Credit Downgrade
 
Yuan Drop
 
Covid

LegalZoom Ownership Allocation

LegalZoom maintains a total of 172.82 Million outstanding shares. The majority of LegalZoom outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in LegalZoom to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in LegalZoom. Please pay attention to any change in the institutional holdings of LegalZoom as this could imply that something significant has changed or is about to change at the company. On November 28, 2021, Representative Alan S Lowenthal of US Congress acquired under $15k worth of LegalZoom's common stock.

LegalZoom Profitability Analysis

The company generated the yearly revenue of 660.73 M. Reported Net Income was 13.95 M with gross profit of 408.88 M.

About LegalZoom Valuation

Our relative valuation model uses a comparative analysis of LegalZoom. We calculate exposure to LegalZoom's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of LegalZoom's related companies.
Last ReportedProjected for Next Year
Gross Profit408 M302.6 M
Pretax Profit Margin 0.05  0.05 
Operating Profit Margin 0.03  0.03 
Net Profit Margin 0.02  0.02 
Gross Profit Margin 0.62  0.47 

LegalZoom Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
Common Stock Shares Outstanding194.4 M
Quarterly Earnings Growth Y O Y0.521
Forward Price Earnings27.248

LegalZoom Current Valuation Indicators

Valuation refers to the process of determining the present value of LegalZoom and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value LegalZoom we look at many different elements of the entity such as LegalZoom's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as LegalZoom, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use LegalZoom's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes LegalZoom's worth.

Additional Tools for LegalZoom Stock Analysis

When running LegalZoom's price analysis, check to measure LegalZoom's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy LegalZoom is operating at the current time. Most of LegalZoom's value examination focuses on studying past and present price action to predict the probability of LegalZoom's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move LegalZoom's price. Additionally, you may evaluate how the addition of LegalZoom to your portfolios can decrease your overall portfolio volatility.