GuruFocus Manual of Stocks™  |  Jan 23, 2022
Zillow Group Inc (NAS:Z)
www.gurufocus.com/stock/NAS:Z
Zillow Group Inc (NAS:Z)
[1]
Possible Value Trap, Think Twice[5]$ 51.10
Interactive Media - Internet Content & Information
Market Cap: $ 12,962 Mil
Zillow Group Inc provides real estate and home-related information marketplaces on mobile and web-based platforms. It helps customers on each stage of the home lifecycle such as renting, buying, selling, financing, and home improvement.
Valuation Rank
Score: 0 /10CurrentIndustry MedianHistorical Median
PE RatioLoss23.99496.54
Forward P/E38.9326.77N/A
PB Ratio2.223.133.39
PS Ratio2.533.718.11
P/FCFN/A23.86101.66
Shiller P/EN/A35.24N/A
PEG RatioN/A1.16N/A
Valuation Analysis
% of Price
NCAV11.0422
Tangible Book12.7825
Price51.10
Median PS Value171.08335
Dividend & Ownership
Dividend Yield(ttm) %N/A
Dividend Yield(forward) %N/A
PayoutN/A
Dividend Growth(5y) %N/A
Yield on Cost(5y) %N/A
Continuous Div. sinceN/A
Insider Ownership %4.44
Institution Ownership %34.14
Financial Strength
Score: 4 /10CurrentIndustry MedianHistorical Median
Cash-to-Debt0.697.702.28
Equity-to-Asset0.530.660.83
Interest Coverage0.0062.70No Debt
Piotroski F-Score354
Profitability Rank
Score: 3 /10CurrentIndustry MedianHistorical Median
Operating Margin %-0.703.08-5.27
Net Margin %-4.362.59-8.88
ROE %-4.253.79-4.01
ROA %-2.611.31-3.08
ROC (Joel Greenblatt) %-2.9815.62-62.14
Growth (Per Share)
10 Yr5 Yr1 Yr
Revenue Growth (%)3933.523.7
EBITDA Growth (%)N/AN/AN/A
Oprt. Income Growth (%)N/AN/AN/A
EPS w/o NRI Growth (%)N/A0.7N/A
Free Cash Flow Growth (%)N/AN/A-517.9
Book Value Growth (%)455.922.3
Quarterly
Sep20Dec20Mar21Jun21Sep21
Revenue657789121813101737
Net Income40465210-328
EPS0.160.180.20.04-1.29
Revenue (YoY) %-11.88-16.428.2370.49164.45
Net Income (YoY) %-161.21-145.49-131.83-111.42-929.35
EPS (YoY) %-151.61-136.73-125.64-110.53-906.25
Free Cash Flow34-345226-418-2839
Cash & Equiv.37903921469645943215
Current Assets43064965575462867831
Short-Term Debt & CLO26869969113462704
Current Liabilities46690993316473110
Total Liabilities25402745274631315067
Stockholders Equity43034742551056445771
Warning Signs
SEVEREPiotroski F-Score: Low
SEVEREBeneish M-Score: Possible manipulator
SEVEREGross Margin %: Declined
SEVERELong-Term Debt: Keep issuing new debt
Good Signs
GOODPrice: Close to 1-year low
As of 01-23-2022
* All financial numbers are in millions except for per share data, ratios and percentage change.
Gain % SP500 %
1W-7.68-5.75
1M-17.70-5.42
3M-44.47-3.10
6M-54.241.47
YTD-19.97-7.79
1Y-64.9815.50
3Y14.5519.94
5Y6.8016.09
10Y--14.91
199.9
91.95
16.01
12M
6.2M
2012201320142015201620172018201920202021CurrentPerformance
--------37.7239.9650.9165.5251.1140.06208.11Highest Stock Price
--------21.7717.0733.2527.1328.7322.4550.52Lowest Stock Price
--------419166547780643996053122012962Market Cap
66.998.1108.1120169.8180.1186.5197.9206.4223.8254.1Shares Outstanding-Diluted
N/A154.17N/AN/AAt LossAt LossAt LossAt LossAt LossAt LossAt LossPE Ratio
--------1.562.632.921.972.86.582.22PB Ratio
7.597.7714.9136.867.767.054.673.449.112.53PS Ratio
67.7637.61437.18-494.33-59.98-57.97-159.02-552.89-99.3260.89172.27EV-to-EBITDA
2011201220132014201520162017201820192020TTMPer Share Data
0.991.191.832.723.84.75.786.7413.2914.9219.89Revenue per Share
--0.06-0.12-0.36-0.88-1.22-0.51-0.61-1.48-0.72-0.87Earnings per Share
0.090.160.050.01-0.27-0.350.96-0.38-3.391.41-13.37Free Cash Flow per Share
----------------------Dividends per Share
1.12.023.773.811.180.452.165.236.0311.0712.56Tangible Book per Share
--------------------171.08Median PS Value
--1.65------------------Graham Number
2011201220132014201520162017201820192020TTMIncome Statement
66.1116.9197.5325.9644.7846.61076.81333.62742.83339.85054Revenue
55.5102.8178.7296.4584.6777.3991.611801310.81583.41866.6Gross Profit
848890.59190.791.892.188.547.847.436.9Gross Margin %
54.595.7195.3319.6677.69709791225.61557.715481901.8Total Operating Expense
17.1-16.6-23.2-93-192.712.6-45.6-246.835.4-35.2Operating Income
1.56.1-8.4-7.1-14.4-22.81.2-3.4-91.1-0.7Operating Margin %
1.15.9-12.5-43.6-148.9-220.4-94.4-119.9-305.4-162.1-220.5Net Income
1.75.1-6.3-13.4-23.1-26-8.8-9-11.1-4.9-4.4Net Margin %
17.1-16.6-43.6-148-212.9-156.5-109.7-207.8-14.4-56.2EBIT
8.219.86.7-8-72.6-112.3-46.3-10.3-97.212083.5EBITDA
1.93.1-2.9-7.5-9.1-8.5-3.6-4-9.1-4-4.3ROE %
1.62.8-2.7-6.9-7.9-7-3-3.2-5.9-2.4-2.6ROA %
2011201220132014201520162017201820192020Sep21Balance Sheet
47.9150201.8125.8229.1243.6352.1651.11141.31703.12195.4Cash & Equivalents
5.68.715.218.729.840.554.466.16769.9161.1Total Receivables
116.7307.5608.1649.73135.73149.73230.54291.161327486.610838Total Assets
--------------149.7749.2698.52703.8Short-Term Debt & CLO
--------230367.4385.46991763.81821.21940.7Long-Term Debt & CLO
15.527.240.361456.6616.1569.71023.92696.62744.75066.7Total Liabilities
101.2280.3567.8588.82679.12533.62660.83267.23435.44741.85771Total Stockholders Equity
101.2280.3567.8588.82679.12533.62660.83267.23435.44741.85771Total Equity
2011201220132014201520162017201820192020TTMCashflow Statement
14.835.631.345.522.78.6258.23.9-612.2424.2-3287.3Cash Flow from Operations
-58.4-97.7-251.8-145.464.4-65.7-247.4-622.6-456.1-1038.5266.1Cash Flow from Investing
----------------------Repurchase of Stock
----------77.5--481.21729.9306.82883.9Net Issuance of Debt
79.2164.2272.223.916.371.597.7930.11635.71162.33598.7Cash Flow from Financing
35.6102.151.7-76103.414.5108.5311.3567.5548577.5Net Change in Cash
-8.8-20.1-26-44.2-68.1-71.7-78.6-78.5-86.6-108.5-88.6Capital Expenditure
615.55.31.3-45.4-63.1179.6-74.7-698.8315.7-3375.9Free Cash Flow
Competitor
TickerCompanyFinancial
Strength
Profitability
Rank
Market Cap
($M)
PE RatioPS RatioNet
Margin %
ROA %ROE %
NAS:YNDXYandex NV5915,946At Loss3.76-2.88-1.74-2.97
NAS:WBWeibo Corp5713,02722.613.5915.865.2511.70
NAS:ZZillow Group Inc4312,962At Loss2.53-4.36-2.61-4.25
NYSE:TMETencent Music Entertainment Group7510,81622.822.1911.535.557.28
NYSE:WUBA58.com Inc008,283At Loss0.000.000.000.00
GuruFocus Manual of Stocks™  |  Jan 23, 2022
Zillow Group Inc (NAS:Z)
www.gurufocus.com/stock/NAS:Z

Financial Strength[2] (Quarterly data, as of Sep. 2021) : Fair (4/10)

0
1
2
3
4
5
6
7
8
9

Cash-to-Debt : 0.69

Cash-to-Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. A high ratio indicates that a company is better able to pay back its debt, and is thus able to take on more debt if necessary.


Equity-to-Asset : 0.53

Equity-to-Asset ratio is calculated as total stockholders equity divided by its total assets. Equity-to-Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity-to-Asset ratio (more leveraged) may have higher ROE % because of the leverage.


Debt-to-Equity : 0.81

A high Debt-to-Equity ratio generally means that a company has been aggressive in financing its growth with debt.


Piotroski F-Score : 3

The Piotroski F-Score is used to determine the strength of a firm's financial position, with 9 being the best and 0 being the worst.

0
1
2
3
4
5
6
7
8
9


WACC : 10.80% vs ROIC : -0.83%

The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. Return on invested capital (ROIC) measures how well a company generates cash flow relative to the capital it has invested in its business.


Dividend Yield : 0.00%

Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position.

GuruFocus Manual of Stocks™  |  Jan 23, 2022
Zillow Group Inc (NAS:Z)
www.gurufocus.com/stock/NAS:Z

Profitability[3] (Annual data, as of Dec. 2020) : Poor (3/10)

0
1
2
3
4
5
6
7
8
9

Revenue : $1,737 Mil vs Net Income : $-328 Mil

Revenue is the amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. Net Income is a company's total profit. Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses.


Cash & Equivalents : $2,195 Mil vs Long-Term Debt* : $1,941 Mil

Cash & equivalents are the most liquid assets on the balance sheet. Cash equivalents are assets that are readily convertible into cash. Long-Term Debt* consists of loans and obligations lasting over one year.


Operating Margin % : -16.03%

Operating margin % measures how much profit a company makes on a dollar of sales. Operating Margin % is calculated as Operating Income divided by Revenue.


EPS without NRI : $-1.29

Earnings Per Share without Non-Recurring Items is the amount of earnings without non-recurring items per outstanding share of the company's stock. In calculating earnings per share without non-recurring items, the dividends of preferred stocks and Non Operating Income need to subtracted from the total net income first.


Dividends per Share : $0.00

Dividends per Share is the amount of dividends that the shareholders of a company receive on a per-share basis. It is calculated using the total dividends paid out to shareholders over one fiscal year and the number of shares outstanding.


Free Cash Flow per Share : $-11.17

Free Cash flow per Share is the amount of Free cash flow per outstanding share of the company's stock.

GuruFocus Manual of Stocks™  |  Jan 23, 2022
Zillow Group Inc (NAS:Z)
www.gurufocus.com/stock/NAS:Z

Valuation (Quarterly data, as of Sep. 2021)

These valuation metrics should give you a sense of reasonable prices, but be careful with them. Always seek to understand why a valuation is changing over time.


Valuation Chart (Current stock price : $51.10)


PE Ratio without NRI : At Loss

The price-to-earnings ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than regular PE Ratio.


PB Ratio : 3.89

The price-to-book ratio measures the valuation of the stock relative to the underlying asset of the company.


PS Ratio : 4.45

The price-to-sales ratio is a valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the value placed on each dollar of a company’s sales or revenues.


Price-to-Free-Cash-Flow : 0.00

Price-to-free-cash-flow is very similar to the valuation metric of price-to-operating-cash-flow but is considered a more exact measure, owing to the fact that it uses free cash flow, which subtracts capital expenditures from a company's total operating cash flow, thereby reflecting the actual cash flow available to fund non-asset-related growth.


EV-to-EBIT : -426.81

Enterprise value of a company divided by its trailing 12 months earnings before interest and taxes (EBIT).

GuruFocus Manual of Stocks™  |  Jan 23, 2022
Zillow Group Inc (NAS:Z)
www.gurufocus.com/stock/NAS:Z

Valuation Bands

In these charts the 10-year valuation bands of the price-to-earnings ratio (PE Ratio), price-to-book ratio (PB Ratio), price-to-sales ratio (PS Ratio) and price-to-operating-cash-flow ratio (POCF) are drawn together with the historical stock prices. For example, the upper line of the PE band is where the stock price would have been if it were always traded at the maximum PE ratio of the past 10 years. The lower line of the PE band is where the stock price would have been if it were always traded at the lowest PE ratio of the past 10 years. It is always better if the stock price is close to the lower line, which indicates a lower valuation.


Historical Price and PE Band


Historical Price and PS Band


Historical Price and PB Band


Historical Price and Price-to-Operating-Cash-Flow (POCF) Band

GuruFocus Manual of Stocks™  |  Jan 23, 2022
Zillow Group Inc (NAS:Z)
www.gurufocus.com/stock/NAS:Z

Warning Signs

GuruFocus conducted a thorough checkup using a checklist of 32 items that cover the areas of financial strength, profitability, growth, and valuation of each company. The purpose of Warning Signs is to warn you that the company may have red flags in certain areas, helping to avoid overlooking them. These warning signs do not necessarily mean you should not invest in the stock. But you should be aware of them before you invest.


Severe Warning Signs

Piotroski F-Score : Low

Piotroski F-Score of 3 is low, which usually implies poor business operation.

Beneish M-Score : Possible manipulator

Beneish M-Score -0.5 higher than -1.78, which implies that the company might have manipulated its financial results.

Gross Margin % : Declined

Zillow Group Inc gross margin has been in long term decline. The average rate of decline per year is -13.9%.

Good Signs

Price : Close to 1-year low

Zillow Group Inc stock Price is close to 1-year low

PB Ratio : Close to 1-year low

Zillow Group Inc stock PB Ratio (=2.22) is close to 1-year low of 2.22

PS Ratio : Close to 1-year low

Zillow Group Inc stock PS Ratio (=2.53) is close to 1-year low of 2.53

Medium Warning Signs

Altman Z-Score : Grey

Altman Z-score of 2.33 is in grey area. The implies that the company is in some kind of financial stress. If it is below 1.8, the company may faces bankrupcy risk.
GuruFocus Manual of Stocks™  |  Jan 23, 2022
Zillow Group Inc (NAS:Z)
www.gurufocus.com/stock/NAS:Z

Competitive Comparison


5 Year Price Change Comparison


Financial Strength

CompanyFinancial StrengthCash-to-DebtEquity-to-AssetDebt-to-EquityInterest CoveragePiotroski F-ScoreAltman Z-ScoreBeneish M-ScoreWACC %ROIC %
NYSE:ATHMAutohome Inc9/10No Debt0.830.00No Debt44.97-2.143.1340.73
NYSE:PINSPinterest Inc8/1012.190.860.0778.51726.53-2.457.7563.60
NYSE:TMETencent Music Entertainment Group7/103.710.750.1133.3053.93-2.368.228.24
NAS:ANGIAngi Inc5/100.960.560.430.0043.52-1.7911.76-2.60
NAS:WBWeibo Corp5/101.110.460.7516.3943.24-1.426.4523.23
NAS:YNDXYandex NV5/101.030.500.520.0034.16-2.007.37-12.58
NAS:ZZillow Group Inc4/100.690.530.810.0032.33-0.5010.80-0.83
NAS:IQiQIYI Inc3/100.480.133.480.004-0.88-2.875.00-12.50
NYSE:WUBA58.com Inc0/100.000.000.000.0000.000.000.000.00

Profitability

CompanyProfitability RankOperating
Margin %
Net Margin %ROE %ROA %Price-to-Free-Cash-FlowROC (Joel Greenblatt) %3-Year Revenue Growth %3-Year EBITDA Growth %3-Year EPS w/o NRI Growth %
NYSE:ATHMAutohome Inc9/1031.7738.5015.4112.518.94368.6111.4015.6019.10
NAS:YNDXYandex NV9/10-1.93-2.88-2.97-1.740.001.4118.9016.9026.10
NAS:WBWeibo Corp7/1032.3315.8611.705.2510.78432.6513.302.10-4.00
NYSE:TMETencent Music Entertainment Group5/1011.2611.537.285.5511.15960.9837.6040.3045.50
NAS:ANGIAngi Inc4/10-3.21-3.67-4.88-2.650.00-48.7019.900.0065.30
NAS:ZZillow Group Inc3/10-0.70-4.36-4.25-2.610.00-2.9837.200.00-12.20
NAS:IQiQIYI Inc2/10-15.71-19.40-78.57-12.680.00-193.4718.2024.10-15.50
NYSE:PINSPinterest Inc1/1014.4414.3414.9312.8130.3669.0039.1016.008.80
NYSE:WUBA58.com Inc0/100.000.000.000.000.000.000.000.000.00

Valuation

CompanyPE RatioPB RatioPS RatioPrice-to-Intrinsic-Value-Projected-FCFPrice-to-Intrinsic-Value-DCF (Earnings Based)Price-to-Median-PS-ValuePrice-to-Peter-Lynch-Fair-ValuePrice-to-Graham-NumberEarnings Yield (Joel Greenblatt) %Forward Rate of Return (Yacktman) %
NYSE:WUBA58.com IncAt Loss0.000.000.000.000.000.000.000.000.00
NAS:ANGIAngi IncAt Loss3.452.462.420.000.600.000.00-1.340.00
NAS:YNDXYandex NVAt Loss4.513.763.510.000.530.000.000.1212.58
NAS:ZZillow Group IncAt Loss2.222.530.000.000.300.000.00-0.390.00
NAS:IQiQIYI IncAt Loss3.340.710.000.000.000.000.00-13.320.00
NYSE:ATHMAutohome Inc9.161.263.480.610.220.000.480.8018.8328.38
NAS:WBWeibo Corp22.612.383.592.370.000.000.901.625.5620.80
NYSE:TMETencent Music Entertainment Group22.821.402.190.000.000.000.001.597.940.00
NYSE:PINSPinterest Inc57.757.107.930.000.000.000.004.282.080.00
GuruFocus Manual of Stocks™  |  Jan 23, 2022
Zillow Group Inc (NAS:Z)
www.gurufocus.com/stock/NAS:Z

Peter Lynch Chart[4]

GuruFocus Manual of Stocks™  |  Jan 23, 2022
Zillow Group Inc (NAS:Z)
www.gurufocus.com/stock/NAS:Z

Per Share Data



Per Share Data

Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
0.25
0.43
0.99
1.19
1.83
2.72
3.8
4.7
5.78
6.74
13.29
14.92
19.89
Revenue per Share
-0.09
-0.02
0.12
0.2
0.06
-0.07
-0.43
-0.62
-0.25
-0.05
-0.47
0.54
0.35
EBITDA per Share
-0.18
-0.1
0.02
0.07
-0.15
-0.36
-0.87
-1.18
-0.84
-0.55
-1.01
-0.06
-0.21
EBIT per Share
-0.31
-0.17
--
0.06
-0.12
-0.36
-0.88
-1.22
-0.51
-0.61
-1.48
-0.72
-0.87
Earnings per Share (Diluted)
-0.31
-0.1
--
0.06
-0.12
-0.36
-0.88
-1.22
-0.51
-0.61
-1.48
-0.72
-0.87
EPS without NRI
--
--
--
--
--
--
-0.71
-0.93
-0.15
-1.68
-4.67
-0.25
-16.5
Owner Earnings per Share (TTM)
-0.12
-0.05
0.09
0.16
0.05
0.01
-0.27
-0.35
0.96
-0.38
-3.39
1.41
-13.37
Free Cash Flow per Share
-0.06
0.03
0.22
0.36
0.29
0.38
0.13
0.05
1.39
0.02
-2.97
1.9
-13.01
Operating Cash Flow per Share
0.23
0.2
0.91
1.91
2.5
3.04
2.92
2.78
4.01
7.63
11.59
16.3
12.62
Cash per Share
0.3
0.25
1.2
2.76
4.8
4.81
15.01
13.89
14
16.02
16.43
19.71
22.65
Book Value per Share
0.29
0.23
1.1
2.02
3.77
3.81
1.18
0.45
2.16
5.23
6.03
11.07
12.56
Tangible Book per Share
--
--
--
--
--
--
1.29
2.01
2.03
4.16
12.02
10.48
18.23
Total Debt per Share
--
--
--
--
--
--
23.48
36.47
40.92
31.58
45.94
130
51.1
Month End Stock Price

Ratios

Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
-60.85
-35.12
1.86
3.11
-2.94
-7.54
-9.11
-8.46
-3.64
-4.04
-9.11
-3.97
-4.25
ROE %
--
--
--
--
--
--
-5.84
-3.22
-1.25
-2.05
-3.25
-0.6
-1.91
ROE % Adjusted to Book Value
-52.24
-27.86
1.57
2.8
-2.72
-6.93
-7.87
-7.01
-2.96
-3.19
-5.86
-2.38
-2.61
ROA %
-63.48
-36.8
2.01
3.99
-3.83
-9.57
-44
-150
-38.33
-16.24
-26.25
-8.27
-7.3
Return-on-Tangible-Equity
-54.17
-28.91
1.67
3.49
-3.47
-8.62
-24.93
-32.27
-11.25
-7.81
-10.1
-3.46
-3.52
Return-on-Tangible-Asset
-273
-141
16.4
58.44
-74.69
-126
-233
-232
-149
-49.59
-25.51
-1.15
-2.98
ROC (Joel Greenblatt) %
-59.66
-34.6
1.66
3.63
-3.84
-7.42
-8.1
-6.97
-5.08
-3.08
-4.51
-0.24
-0.8
ROCE %
-193
-84.87
4.17
9.31
-5.89
-7.98
-6.29
-7.39
0.26
-1.42
-7.75
0.96
-0.83
ROIC %
--
--
7.89
7.78
9.04
9.97
11.03
11.87
10.89
8.58
5.28
9.44
10.8
WACC %
--
--
--
--
--
--
2.39
2.48
7.31
6.69
6.06
6.17
5.55
Effective Interest Rate on Debt %
76.89
83.68
83.99
87.98
90.48
90.96
90.67
91.82
92.09
88.48
47.79
47.41
36.93
Gross Margin %
-74.13
-22.44
1.51
6.05
-8.39
-7.12
-14.43
-22.76
1.17
-3.42
-9
1.06
-0.7
Operating Margin %
-73.49
-22.23
1.67
5.08
-6.3
-13.38
-23.09
-26.04
-8.77
-8.99
-11.13
-4.85
-4.36
Net Margin %
-47.42
-10.73
9.09
13.31
2.7
0.39
-7.05
-7.45
16.68
-5.6
-25.48
9.45
-66.8
FCF Margin %
--
--
--
--
--
--
0.09
0.15
0.15
0.26
0.73
0.53
0.81
Debt-to-Equity
0.86
0.73
0.87
0.91
0.93
0.91
0.85
0.8
0.82
0.76
0.56
0.63
0.53
Equity-to-Asset
--
--
--
--
--
--
0.07
0.12
0.12
0.2
0.41
0.34
0.43
Debt-to-Asset
0.14
0.27
0.13
0.09
0.07
0.09
0.15
0.2
0.18
0.24
0.44
0.37
0.47
Liabilities-to-Assets
54.65
105
78.87
48.47
39.04
47.14
30.88
24.73
31.08
31.38
25.15
23.25
22.12
Gross-Profit-to-Asset %
0.71
1.25
0.94
0.55
0.43
0.52
0.34
0.27
0.34
0.36
0.53
0.49
0.6
Asset Turnover
59.85
41.04
28.47
24.71
21.52
17.45
13.62
13.58
14.17
15.39
8.53
7.48
7.15
Days Sales Outstanding
38.2
43.05
41.95
62.89
76.47
87.23
38.61
20.07
16.8
13.14
2.02
2.84
2.33
Days Payable
--
--
--
--
--
--
--
--
--
387
127
138
139
Days Inventory
21.65
-2.01
-13.48
-38.18
-54.95
-69.78
-24.99
-6.49
-2.63
389
134
143
144
Cash Conversion Cycle
--
--
--
--
--
--
--
--
--
0.94
2.87
2.65
2.62
Inventory Turnover
0.23
0.16
0.16
0.12
0.1
0.09
0.09
0.08
0.08
0.12
0.52
0.53
0.63
COGS-to-Revenue
--
--
--
--
--
--
--
--
--
0.12
0.18
0.2
0.24
Inventory-to-Revenue
0.23
0.18
0.13
0.17
0.13
0.14
0.11
0.09
0.07
0.06
0.03
0.03
0.02
Capex-to-Revenue
--
--
8.85
2.84
--
--
--
--
6.25
--
--
3.06
-- Capex-to-Operating-Income
* All financial numbers are in millions except for per share data, ratios and percentage change. When Return-on-Tangible-Equity displays Neg. E, it means the the tangible equity is negative.
GuruFocus Manual of Stocks™  |  Jan 23, 2022
Zillow Group Inc (NAS:Z)
www.gurufocus.com/stock/NAS:Z

Financial Satement



Income Statement

Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
17.49
30.47
66.05
117
198
326
645
847
1077
1334
2743
3340
5054
Revenue
4.04
4.97
10.58
14.04
18.81
29.46
60.13
69.26
85.2
154
1432
1756
3187
Cost of Goods Sold
13.45
25.49
55.48
103
179
296
585
777
992
1180
1311
1583
1867
Gross Profit
76.89
83.68
83.99
87.98
90.48
90.96
90.67
91.82
92.09
88.48
47.79
47.41
36.93
Gross Margin %
15.16
21.68
40.34
69.13
147
235
493
714
659
815
1080
1030
1288
Selling, General, & Admin. Expense
11.26
10.65
14.14
26.61
48.5
84.67
184
256
320
411
477
518
614
Research & Development
--
0
--
-0
0
0
0
--
-0
-0
--
--
0
Other Operating Expense
26.42
32.33
54.48
95.74
195
320
678
970
979
1226
1558
1548
1902
Total Operating Expense
-12.97
-6.84
1
7.06
-16.57
-23.2
-93.04
-193
12.59
-45.63
-247
35.41
-35.23
Operating Income
-74.13
-22.44
1.51
6.05
-8.39
-7.12
-14.43
-22.76
1.17
-3.42
-9
1.06
-0.7
Operating Margin %
--
--
--
--
--
--
-5.49
-7.41
-27.52
-41.26
-102
-155
-164
  Interest Expense
--
--
--
--
--
--
-5.49
-7.41
-27.52
-41.26
-102
-155
-164
Net Interest Income
12.97
0.06
0.11
-1.13
0.01
-20.41
-54.99
-20.22
-169
-64.08
39.01
-49.82
-20.99
Other Income (Expense)
--
-6.77
1.1
5.94
-16.56
-43.61
-154
-220
-184
-151
-310
-170
-221
Pre-Tax Income
--
--
--
--
4.11
--
4.65
-0.13
89.59
31.1
4.26
7.52
-0.01
Tax Provision
--
--
--
--
24.82
--
3.03
-0.06
48.69
20.6
1.38
4.43
-- Tax Rate %
-12.86
-6.77
1.1
5.94
-12.45
-43.61
-149
-220
-94.42
-120
-305
-162
-221
Net Income (Continuing Operations)
-12.86
-6.77
1.1
5.94
-12.45
-43.61
-149
-220
-94.42
-120
-305
-162
-221
Net Income
-73.49
-22.23
1.67
5.08
-6.3
-13.38
-23.09
-26.04
-8.77
-8.99
-11.13
-4.85
-4.36
Net Margin %
-0.31
-0.17
--
0.07
-0.12
-0.36
-0.88
-1.22
-0.51
-0.61
-1.48
-0.72
-0.84
EPS (Basic)
-0.31
-0.17
--
0.06
-0.12
-0.36
-0.88
-1.22
-0.51
-0.61
-1.48
-0.72
-0.87
EPS (Diluted)
70.81
70.81
66.92
98.13
108
120
170
180
186
198
206
224
254
Shares Outstanding (Diluted Average)
-12.97
-6.84
1
7.06
-16.56
-43.61
-148
-213
-156
-110
-208
-14.41
-56.23
EBIT
6.41
5.26
7.19
12.77
23.25
35.62
75.39
101
110
99.39
111
134
140
Depreciation, Depletion and Amortization
-6.56
-1.58
8.19
19.84
6.69
-7.99
-72.64
-112
-46.33
-10.31
-97.22
120
83.54
EBITDA

Cashflow Statement

Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
-12.86
-6.77
1.1
5.94
-12.45
-43.61
-149
-220
-94.42
-120
-305
-162
-221
Net Income From Continuing Operations
6.41
5.26
7.19
12.77
23.25
35.62
75.39
101
110
99.39
111
134
140
Depreciation, Depletion and Amortization
-0.61
-1.36
-2.21
-3.46
-7.57
-5.98
-1.05
-13.32
-21.2
-54.07
-38.41
-47.59
-112
  Change In Receivables
--
--
--
--
--
--
--
--
--
-163
-674
345
-3868
  Change In Inventory
0.31
-0.07
-2.88
0.65
-1.54
-5.08
-0.76
-13.26
10.81
-34.07
-0.98
-15.96
-69.83
  Change In Prepaid Assets
0.44
0.87
3.38
2.77
0.83
10.92
-29.54
-4.21
18.63
3.23
19.08
28.29
182
  Change In Payables And Accrued Expense
0.64
2.48
2.39
2.53
5.62
5.35
-7.42
21.87
-2.32
14.25
-8.98
-267
-104
  Change In Other Working Capital
0.79
1.93
0.68
2.49
-2.67
5.21
-38.77
-8.92
5.92
-233
-703
42.91
-3972
Change In Working Capital
--
--
--
--
-4.11
--
-2.85
-1.37
-89.59
-31.1
-4.26
-7.52
-2.6
Deferred Tax
1.65
1.72
1.95
6.61
23.44
34.09
105
107
114
149
199
198
284
Stock Based Compensation
--
0.24
0.59
1.23
1.91
5.79
22.24
2.68
181
79.87
2.77
79.45
2.65
Asset Impairment Charge
-0.21
-0.12
3.31
6.57
1.93
8.42
10.33
29.19
31.21
59.95
88.25
140
481
Cash Flow from Others
-4.22
2.26
14.83
35.61
31.3
45.52
22.66
8.65
258
3.85
-612
424
-3287
Cash Flow from Operations
-3.62
-4.9
-7.69
-15.99
-22.05
-31.52
-52.69
-62.06
-66.73
-66.05
-67.04
-84.94
-57.96
Purchase Of Property, Plant, Equipment
--
--
-6.54
-67.65
-42.71
-3.5
-104
-26.32
-11.53
-55.14
--
--
-- Purchase Of Business
--
--
--
--
--
--
197
3.2
0.58
--
--
--
-- Sale Of Business
-29.47
-7.42
-47.77
-38.4
-236
-273
-308
-175
-417
-902
-1495
-3287
-1406
Purchase Of Investment
19.05
17.58
4.75
28.43
53
175
344
204
259
413
1126
2357
2767
Sale Of Investment
-0.46
-0.63
-1.14
-4.07
-3.93
-12.73
-15.42
-9.66
-11.91
-12.48
-19.59
-23.58
-30.66
Net Intangibles Purchase And Sale
-0
0
-0
-0
-0
-0
3.93
0
-0
-0
0
-0
-1006
Cash From Other Investing Activities
-14.49
4.63
-58.38
-97.67
-252
-145
64.44
-65.72
-247
-623
-456
-1038
266
Cash Flow from Investing
--
--
76.29
157
254
--
--
--
--
360
--
412
545
Issuance of Stock
--
--
--
--
--
--
--
448
--
481
1846
1181
3525
  Issuance of Debt
--
--
--
--
--
--
--
-370
--
--
-116
-874
-641
  Payments of Debt
--
--
--
--
--
--
--
77.55
--
481
1730
307
2884
Net Issuance of Debt
--
--
2.92
7.45
18.35
--
--
-6.02
--
88.59
-94.22
444
170
Other Financing
0.1
0.95
79.21
164
272
23.92
16.27
71.53
97.71
930
1636
1162
3599
Cash Flow from Financing
-18.61
7.84
35.65
102
51.72
-76
103
14.45
109
311
567
548
577
Net Change in Cash
-4.08
-5.53
-8.82
-20.06
-25.97
-44.24
-68.11
-71.72
-78.64
-78.54
-86.64
-109
-88.62
Capital Expenditure
-8.29
-3.27
6.01
15.55
5.33
1.28
-45.45
-63.08
180
-74.69
-699
316
-3376
Free Cash Flow
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Jan 23, 2022
Zillow Group Inc (NAS:Z)
www.gurufocus.com/stock/NAS:Z

Financial Satement


Balance Sheet

Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
4.44
12.28
47.93
150
202
126
229
244
352
651
1141
1703
2195
  Cash And Cash Equivalents
11.65
1.5
28.93
44.05
93.53
247
291
264
410
904
1281
2218
1020
  Marketable Securities
16.09
13.78
76.85
194
295
373
520
508
763
1555
2422
3921
3215
Cash, Cash Equivalents, Marketable Securities
2.87
3.98
6.32
9.5
13.79
17.37
30.74
32.26
51.33
61.13
67.01
69.94
161
  Accounts Receivable
--
--
-0.68
-0.85
1.44
1.31
-0.95
8.27
3.06
4.95
--
--
--   Other Current Receivables
2.87
3.98
5.64
8.66
15.23
18.68
29.79
40.53
54.4
66.08
67.01
69.94
161
Total Receivables
--
--
--
--
--
--
--
--
--
45.94
152
152
1719
  Inventories, Work In Process
--
--
--
--
--
--
--
--
--
117
684
339
2039
  Inventories, Finished Goods
--
--
--
--
--
--
--
--
--
--
--
--
-0
  Inventories, Other
--
--
--
--
--
--
--
--
--
163
837
491
3758
Total Inventories
0.35
0.41
3.21
2.65
4.99
10.06
24.02
34.82
24.59
109
184
482
696
Other Current Assets
19.31
18.17
85.7
205
316
401
574
583
842
1893
3510
4965
7831
Total Current Assets
--
--
15.29
9.39
142
83.33
--
--
--
--
--
--
-- Investments And Advances
23.69
28.66
11.68
11.78
13.71
23.16
34.46
47.43
52.96
61.99
68.52
60.04
50.93
  Machinery, Furniture, Equipment
0.53
0.68
1.63
3.09
3.29
9.31
15.63
19.47
28.15
29.04
45.34
44.15
13.27
  Construction In Progress
1.85
1.89
23.93
37.59
57.73
75.84
108
140
177
215
444
394
412
  Other Gross PPE
26.06
31.22
37.24
52.46
74.72
108
158
207
259
306
558
498
477
Gross Property, Plant and Equipment
-21.65
-26.29
-30.01
-35.51
-47.32
-66.7
-72.24
-109
-146
-171
-175
-114
-115
  Accumulated Depreciation
4.41
4.93
7.23
16.95
27.41
41.6
85.52
98.29
112
135
383
384
361
Property, Plant and Equipment
0.88
0.89
8.21
75.53
122
123
2468
2451
2251
2201
2175
2080
2570
Intangible Assets
--
--
3.68
54.28
93.21
96.35
1909
1923
1931
1985
1985
1985
2375
  Goodwill
0.02
0.03
0.25
0.28
0.35
0.36
8.04
17.59
25.93
62.43
63.7
57.89
75.61
Other Long Term Assets
5.3
5.84
30.97
102
293
248
2562
2567
2389
2398
2622
2522
3007
Total Long-Term Assets
24.61
24.01
117
308
608
650
3136
3150
3231
4291
6132
7487
10838
Total Assets
0.42
0.75
1.68
3.16
4.72
9.36
3.36
4.26
3.59
7.47
8.34
18.97
30.89
  Accounts Payable
--
--
--
--
--
--
--
--
--
1.38
6.29
6.13
--   Total Tax Payable
--
--
--
--
--
5.32
5.32
5.9
5.9
5.9
6.12
6.12
--   Other Current Payables
1.38
1.93
4.89
6.32
10.6
11.57
37.73
32.52
55.47
55.82
73.04
82.24
262
  Current Accrued Expense
1.8
2.68
6.57
9.48
15.33
26.24
46.41
42.68
64.96
70.57
93.79
113
292
Accounts Payable & Accrued Expense
--
--
--
--
--
--
--
--
--
150
732
670
2674
  Short-Term Debt
--
--
--
--
--
--
--
--
--
--
17.59
28.31
29.44
  Short-Term Capital Lease Obligation
--
--
--
--
--
--
--
--
--
150
749
699
2704
Short-Term Debt & Capital Lease Obligation
0.81
3.28
5.83
8.75
12.84
16.22
22.62
30.5
34.32
35.82
39.75
49
54.2
  Current Deferred Revenue
1.07
3.56
5.83
8.75
12.84
16.22
22.62
30.5
34.32
35.82
39.75
49
54.2
DeferredTaxAndRevenue
-0
--
1.59
2.51
4.44
6.74
11.39
24.06
19.11
31.39
37.81
47.67
59.86
Other Current Liabilities
2.88
6.23
13.99
20.74
32.61
49.2
80.42
97.24
118
287
921
909
3110
Total Current Liabilities
--
--
--
--
--
--
230
367
385
699
1543
1614
1766
  Long-Term Debt
--
--
--
--
--
--
--
--
--
--
220
208
174
  Long-Term Capital Lease Obligation
--
--
--
--
--
--
230
367
385
699
1764
1821
1941
Long-Term Debt & Capital Lease Obligation
--
--
--
--
--
--
0.09
0.15
0.15
0.26
0.73
0.53
0.81
Debt-to-Equity
0.61
0.34
1.35
6.49
7.66
11.76
146
151
65.89
37.42
12.19
14.86
-- NonCurrent Deferred Liabilities
0
-0
0.12
0
0
0
0
0
-0
0
0
-0
15.71
Other Long-Term Liabilities
0.61
0.34
1.47
6.49
7.66
11.76
376
519
451
736
1776
1836
1956
Total Long-Term Liabilities
3.48
6.57
15.46
27.23
40.27
60.95
457
616
570
1024
2697
2745
5067
Total Liabilities
0
0
0
0
0
0.01
0.02
0.02
0.02
0.02
0.02
0.02
0.03
Common Stock
0
0
--
--
--
--
--
--
--
--
--
--
-- Preferred Stock
-71.94
-78.71
-77.61
-71.67
-84.12
-128
-277
-497
-592
-672
-977
-1139
-1406
Retained Earnings
--
--
--
--
--
--
-0.47
-0.24
-1.1
-0.91
0.34
0.16
0.15
Accumulated other comprehensive income (loss)
93.06
96.15
179
352
652
716
2956
3031
3254
3940
4412
5881
7177
Additional Paid-In Capital
0
0
--
--
--
--
--
0
-0
--
--
--
0
Other Stockholders Equity
21.13
17.45
101
280
568
589
2679
2534
2661
3267
3435
4742
5771
Total Stockholders Equity
21.13
17.45
101
280
568
589
2679
2534
2661
3267
3435
4742
5771
Total Equity
0.86
0.73
0.87
0.91
0.93
0.91
0.85
0.8
0.82
0.76
0.56
0.63
0.53
Equity-to-Asset
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Jan 23, 2022
Zillow Group Inc (NAS:Z)
www.gurufocus.com/stock/NAS:Z

Valuation Ratios



Valuation Ratios

Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
N/A
N/A
N/A
154
N/A
N/A
At Loss
At Loss
At Loss
At Loss
At Loss
At Loss
At Loss PE Ratio
N/A
N/A
N/A
154
N/A
N/A
At Loss
At Loss
At Loss
At Loss
At Loss
At Loss
At Loss PE Ratio without NRI
--
--
--
--
--
--
1.56
2.63
2.92
1.97
2.8
6.58
2.22
PB Ratio
--
--
--
--
--
--
19.86
80.51
18.97
6.04
7.62
11.73
4
Price-to-Tangible-Book
--
--
83.22
58.54
556
3209
--
--
42.31
--
--
96.41
-- Price-to-Free-Cash-Flow
--
--
33.74
25.48
93.93
93.14
196
759
29.42
1654
--
71.74
-- Price-to-Operating-Cash-Flow
--
--
7.59
7.77
14.9
13
6.86
7.76
7.05
4.67
3.44
9.11
2.53
PS Ratio
--
--
8.4
6.38
14.81
12.11
6.76
7.69
6.84
4.28
3.52
9.37
2.85
EV-to-Revenue
--
--
67.76
37.61
437
-494
-59.98
-57.97
-159
-553
-99.3
261
172
EV-to-EBITDA
--
--
556
106
-177
-90.52
-29.43
-30.58
-47.08
-51.98
-46.45
-2172
-256
EV-to-EBIT
--
--
0.18
0.95
-0.57
-1.1
-3.4
-3.27
-2.12
-1.92
-2.15
-0.05
-0.39
Earnings Yield (Joel Greenblatt) %

Valuation and Quality

Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
--
--
--
--
--
--
4191
6654
7780
6439
9605
31220
12962
Market Cap
--
--
--
--
--
--
3900
6514
7402
5733
9695
29819
14391
Enterprise Value
--
--
--
--
--
--
23.48
36.47
40.92
31.58
45.94
130
51.1
Month End Stock Price
0.18
0.1
0.73
1.64
2.16
2.55
0.36
-0.6
1.01
2.6
-1.31
4.89
-7.27
Net Cash per Share
0.22
0.16
0.83
1.75
2.33
2.78
0.66
-0.18
1.43
4.26
3.89
9.23
10.85
Net Current Asset Value
0.21
0.14
0.78
1.71
2.24
2.65
0.49
-0.46
1.22
3.23
0.93
6.13
0.58
Net-Net Working Capital
--
--
--
--
--
--
10.69
10.11
12.46
12.83
5.35
11.61
-13.59
Intrinsic Value: Projected FCF
--
--
--
--
--
--
--
--
--
--
--
--
171
Median PS Value
--
--
--
1.65
--
--
--
--
--
--
--
--
-- Graham Number
--
--
--
--
--
--
1.85
0.81
1.65
3.53
-1.12
6.36
-1.28
Earnings Power Value (EPV)
--
-2.72
24.89
21.55
48.58
43.18
6.22
6.49
8.34
4.21
2.75
8.02
2.33
Altman Z-Score
N/A
N/A
8
7
4
4
3
4
6
3
1
6
3
Piotroski F-Score
--
--
-0.28
-2.08
-2.1
-2.85
-1.39
-2.89
-2.28
-2.58
-1.57
-2.77
-0.5
Beneish M-Score
0.21
0.15
1.02
0.74
0.89
0.36
3.68
0.76
0.73
0.79
0.82
0.55
0.82
Scaled Net Operating Assets
23.8
-56.9
38.28
22.11
34.22
8.67
-7.53
-5.19
-3.26
11.63
12.44
6.04
25.84
Sloan Ratio %
6.71
2.92
6.13
9.9
9.68
8.16
7.14
5.99
7.11
6.58
3.81
5.46
2.52
Current Ratio
6.71
2.92
6.13
9.9
9.68
8.16
7.14
5.99
7.11
6.02
2.9
4.92
1.31
Quick Ratio
5.59
2.21
5.49
9.36
9.06
7.57
6.47
5.22
6.44
5.41
2.63
4.32
1.03
Cash Ratio
No Debt
No Debt
No Debt
No Debt
No Debt
No Debt
--
--
0.46
--
--
0.23
-- Interest Coverage
--
--
--
--
--
--
37.72
39.96
50.91
65.52
51.1
140
208
Highest Stock Price
--
--
--
--
--
--
21.77
17.07
33.25
27.13
28.73
22.45
50.52
Lowest Stock Price
--
--
-19.08
-20.52
-16.31
-3.54
-45.83
-2.23
-4.2
-7.25
-2.53
-15.05
-9.65
Shares Buyback Ratio %
--
--
--
--
--
--
--
--
--
-5.6
--
-1.32
-4.2
Buyback Yield %
--
74.09
130
20.67
53.48
48.52
39.85
23.76
22.9
16.66
97.27
12.26
23.68
YoY Rev. per Sh. Growth
--
47.45
100
--
-300
-200
-144
-38.64
58.2
-19.61
-143
51.35
41.61
YoY EPS Growth
--
76.34
655
65.57
-69.31
-208
-539
-45.56
60.03
79.12
-806
214
254
YoY EBITDA Growth
40.94
40.94
59.45
90.58
108
120
170
180
186
198
206
224
254
Shares Outstanding (Basic Average)
70.81
70.81
84.33
102
118
122
178
182
190
204
209
241
255
Shares Outstanding (EOP)
--
--
--
--
--
--
--
--
--
0.97
0.52
1.3
1.49
Beta
07/20/11
07/20/11
03/02/12
02/22/13
02/18/14
02/17/15
02/12/16
02/07/17
02/15/18
02/21/19
02/19/20
02/12/21
  Filing Date
07/20/11
02/22/13
02/18/14
02/17/15
02/12/16
02/07/17
02/15/18
02/21/19
02/19/20
02/12/21
02/12/21
02/12/21
  Restated Filing Date
02/13/13
02/12/14
02/07/17
02/08/18
02/21/19
02/19/20
02/10/21
  Earnings Release Date
--
--
152
101
75
70
381
237
250
227
216
350
350
Number of Shareholders
--
--
329
560
817
1215
2204
2776
3181
4336
5249
5504
7999
Number of Employees
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Jan 23, 2022
Zillow Group Inc (NAS:Z)
www.gurufocus.com/stock/NAS:Z

Explanation

1. Predictability Rank

GuruFocus Predictability Rank is a proprietary ranking of the consistency of a business. We rank the predictability of companies based on the consistency of their revenue per share and EBITDA (earnings before interest, tax, depreciation and amortization) per share over the past 10 fiscal years. Our study found that there is a strong correlation between the stock performance and the predictability of a business. Over the long term, companies with higher predictability also have better stock performance.

The rank is from 1-star to 5-star, with 5-star as the best.

2. Financial Strength

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

  1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
  2. Debt to revenue ratio. The lower, the better.
  3. Altman Z-Score.

The rank is from 1 to 10, with 10 as the highest.

A Financial Strength rank of 8 or above indicates good financial strength; between 4-7 indicates fair financial strength; 3 or below means poor financial strength.

3. Profitability Rank

GuruFocus Profitability Rank indicates how profitable a company is and how likely it is that the company's business will stay that way. It is based on these factors:

  1. Operating Margin %.
  2. Piotroski F-Score.
  3. Trend of the Operating Margin percentage (five-year average). A company with an uptrend in profit margin will have a higher rank.
  4. Consistency of the profitability.
  5. Predictability Rank.

The rank is from 1 to 10, with 10 as the highest.

A Profitability Rank of 8 or above indicates good profitability; between 4-7 indicates fair profitability; 3 or below means poor profitability.

4. Peter Lynch Chart

In Peter Lynch's excellent book, "One Up on Wall Street," he used many charts to illustrate the valuation of stocks. “A quick way to tell if a stock is overpriced is to compare the price line to the earnings line. If you bought familiar growth companies – such as Shoney’s, The Limited, or Marriott – when the stock price fell well below the earnings line, and sold them when the stock price rose dramatically above it, the chances are you’d do pretty well.”

The original Peter Lynch Chart does have limitations due to the right side price scale is pre-set at 15 times the earnings scale on the left side. When the stock price and earnings line coincide, the price-to-earnings ratio is always 15 times. Instead of using the fixed PE Ratio of 15, our approach is using 15-year historical median PE without NRI Ratio for each stock.

The Peter Lynch Chart with earnings line at median PE without NRI ratio works well for the companies with steady growth and earnings trends, or the stalwarts, as coined by Lynch. These companies tend to be found in sectors such as consumer staples, healthcare, and utilities, where the consumption of the product or service is relatively independent of economic conditions. It does not work well with the sectors that are cyclical: industrials, chemicals, durable goods, and so forth.

5. GF Value

Based on the relationship between the current stock price and the GF Value, GuruFocus provides the following 6 evaluations:

  1. Possible Value Trap, Think Twice
  2. Significantly Overvalued
  3. Modestly Overvalued
  4. Fairly Valued
  5. Modestly Undervalued
  6. Significantly Undervalued
There is only a sufficient margin of safety when the stock is undervalued.

Disclaimer

GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.