LegalZoom.com, Inc. (LZ) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-88.6%

$0.79

vs $6.93 price

Levered DCF

$8.96

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

0.15

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2011
P/E	115.06×	44.18×	154.16×	-30.96×	-29.22×	1,031.34×	636.13×	391.01×
P/B	10.33×	14.51×	12.75×	10.65×	16.11×	-13.52×	-8.5×	-79.26×
P/S	2.35×	1.98×	3.26×	2.44×	5.54×	15.82×	11.59×	30.38×
EV / EBITDA	19.68×	15.13×	32.23×	-56.65×	-39.31×	109.11×	78.97×	434.84×
Gross margin	65.9%	64.8%	63.8%	66.0%	67.1%	67.2%	66.5%	48.5%
Operating margin	1.9%	5.2%	3.2%	-6.7%	-14.8%	10.4%	15.5%	4.0%
Net margin	2.0%	4.4%	2.1%	-7.9%	-18.9%	2.1%	1.8%	7.8%
Current ratio	0.75×	0.72×	1.04×	0.97×	1.16×	0.67×	0.44×	0.95×
Debt / equity	0.14×	0.08×	0.05×	0.08×	0×	-0.94×	-0.93×	-0×
Interest coverage	11.1×	79.78×	42.72×	-160.53×	-3.03×	1.38×	1.64×	41.03×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	2.9%
Payout ratio	0.0%	0.0%	0.0%	0.0%	-0.1%	2.9%	11.8%	1115.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2011
Return on equity	9.0%	32.1%	8.3%	-34.2%	-55.0%	-1.8%	-1.3%	-20.3%
Return on invested capital	3.2%	22.5%	5.0%	-26.3%	-38.3%	71.2%	98.9%	58.0%
Return on assets	2.9%	8.0%	3.1%	-12.0%	-25.2%	3.9%	3.7%	22.7%
Free cash flow yield	8.3%	7.4%	4.3%	3.4%	1.3%	1.1%	0.7%	0.2%
Earnings yield	0.9%	2.2%	0.6%	-3.2%	-3.4%	0.1%	0.2%	0.3%
Enterprise value	$1.6B	$1.2B	$1.9B	$1.3B	$2.9B	$7.8B	$5.2B	$4.7B
Net debt / EBITDA	-2.2×	-1.67×	-3.61×	7.53×	3.2×	5.58×	7.12×	-2.48×
Cash conversion cycle (days)	-27	-41	-43	-36	-28	-61	-36	1