LegalZoom Valuation

LZ Stock  USD 11.70  0.08  0.69%   
At this time, the firm appears to be undervalued. LegalZoom secures a last-minute Real Value of $12.9 per share. The latest price of the firm is $11.7. Our model forecasts the value of LegalZoom from analyzing the firm fundamentals such as Return On Equity of 0.0552, current valuation of 1.95 B, and Profit Margin of 0.01 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend acquiring undervalued stocks and dropping overvalued stocks since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting LegalZoom's valuation include:
Price Book
12.8198
Enterprise Value
1.9 B
Enterprise Value Ebitda
32.4284
Price Sales
3.3366
Forward PE
27.248
LegalZoom Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as LegalZoom's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
At this time, LegalZoom's Free Cash Flow is fairly stable as compared to the past year. Enterprise Value is likely to rise to about 1.5 B in 2024, whereas Tangible Asset Value is likely to drop slightly above 355.6 M in 2024.
Undervalued
Today
11.70
Please note that LegalZoom's price fluctuation is not too volatile 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.
Our valuation method for LegalZoom is useful when determining the fair value of the LegalZoom stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of LegalZoom. 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  11.7 Real  12.9 Target  14.61 Hype  11.61
The real value of a stock, also known as the intrinsic value, is the underlying worth of a company that is reflected in its stock price. It is based on the company's financial performance, assets, liabilities, growth prospects, management team, industry conditions, and other relevant factors. The real value of a stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, price-to-book ratio, and other valuation metrics. The real value of a stock 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 the stock's price. It is important to note that the real value of a stock is not a fixed number and may change over time based on changes in the company's performance and other relevant factors.
12.90
Real Value
15.72
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
0.080.110.14
Details
Hype
Prediction
LowEstimatedHigh
8.7911.6114.43
Details
8 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. When choosing an evaluation method for LegalZoom, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

LegalZoom Investments

1.39 Million

LegalZoom Valuation Drivers Correlation

Many accounts on the financial statements of LegalZoom are highly interrelated and sometimes correlated. Consequently, when conducting LegalZoom's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of LegalZoom
Click cells to compare fundamentals

LegalZoom Valuation Trend

Knowing LegalZoom's actual value is paramount for traders to make sound investment determinations. LegalZoom's real value is not only important for the investor to make better decisions but also for a more accurate overall view of LegalZoom's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both LegalZoom's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

LegalZoom Market Cap

LegalZoom is rated third overall in market capitalization category among related companies. Market capitalization of Industrials industry is now estimated at about 29.57 Billion. LegalZoom holds roughly 2.16 Billion in market capitalization claiming about 7% of equities under Industrials industry.
Capitalization  Revenue  Valuation  Workforce  Total debt

LegalZoom Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining LegalZoom's current stock value. Our valuation model uses many indicators to compare LegalZoom value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across LegalZoom competition to find correlations between indicators driving LegalZoom's intrinsic value. More Info.
LegalZoom is rated second overall in price to sales category among related companies. It is currently regarded as number one stock in price to book category among related companies fabricating about  3.84  of Price To Book per Price To Sales. Price to Book Value is likely to rise to 10.54 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value LegalZoom by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for LegalZoom's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the LegalZoom's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates LegalZoom's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in LegalZoom and how it compares across the competition.

About LegalZoom Valuation

The stock valuation mechanism determines the current worth of LegalZoom on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of LegalZoom. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of LegalZoom based exclusively on its fundamental and basic technical indicators. By analyzing LegalZoom's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of LegalZoom's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of LegalZoom. We calculate exposure to LegalZoom's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to LegalZoom's related companies.
Last ReportedProjected for 2024
Gross Profit470.2 M447.5 M
Profit Margin(0.07)(0.08)

8 Steps to conduct LegalZoom's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates LegalZoom's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct LegalZoom's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain LegalZoom's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine LegalZoom's revenue streams: Identify LegalZoom's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research LegalZoom's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish LegalZoom's growth potential: Evaluate LegalZoom's management, business model, and growth potential.
  • Determine LegalZoom's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate LegalZoom's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

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. Note, investing in growth stocks can be very risky. If the company such as LegalZoom does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding194.4 M
Quarterly Earnings Growth Y O Y0.535
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. LegalZoom's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final LegalZoom's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
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.
When determining whether LegalZoom offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of LegalZoom's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Legalzoom Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Legalzoom Stock:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in LegalZoom. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
For more information on how to buy LegalZoom Stock please use our How to Invest in LegalZoom guide.
Note that the LegalZoom information on this page should be used as a complementary analysis to other LegalZoom's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

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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.
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Is LegalZoom's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of LegalZoom. If investors know LegalZoom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about LegalZoom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.535
Earnings Share
0.07
Revenue Per Share
3.387
Quarterly Revenue Growth
0.076
Return On Assets
0.0293
The market value of LegalZoom is measured differently than its book value, which is the value of LegalZoom that is recorded on the company's balance sheet. Investors also form their own opinion of LegalZoom's value that differs from its market value or its book value, called intrinsic value, which is LegalZoom's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because LegalZoom's market value can be influenced by many factors that don't directly affect LegalZoom's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between LegalZoom's value and its price as these two are different measures arrived at by different means. Investors typically determine if LegalZoom is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LegalZoom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.