LegalZoom.com Inc (LZ) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
LegalZoom.com Inc stock (LZ) is currently trading at $5.93. LegalZoom.com Inc PE ratio is 74.75. LegalZoom.com Inc PS ratio (Price-to-Sales) is 1.40. Analyst consensus price target for LZ is $8.71. WallStSmart rates LZ as Sell.
- LZ PE ratio analysis and historical PE chart
- LZ PS ratio (Price-to-Sales) history and trend
- LZ intrinsic value — DCF, Graham Number, EPV models
- LZ stock price prediction 2025 2026 2027 2028 2029 2030
- LZ fair value vs current price
- LZ insider transactions and insider buying
- Is LZ undervalued or overvalued?
- LegalZoom.com Inc financial analysis — revenue, earnings, cash flow
- LZ Piotroski F-Score and Altman Z-Score
- LZ analyst price target and Smart Rating
LegalZoom.com Inc
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LZ Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · LegalZoom.com Inc (LZ)
LZ trades 1217% above its Graham fair value of $0.54, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
LegalZoom.com Inc (LZ) · 9 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in price/sales, institutional own.. Concerns around operating margin and price/book. Mixed signals suggest waiting for clearer direction before acting.
LegalZoom.com Inc (LZ) Key Strengths (2)
92.90% of shares held by major funds and institutions
Paying $1.40 for every $1 of annual revenue
Supporting Valuation Data
LegalZoom.com Inc (LZ) Areas to Watch (7)
Earnings declining -57.90%, profits shrinking
Very thin margins with limited operational efficiency
Very expensive at 6.2x book value
Very thin margins, barely profitable
Small-cap company with higher risk but more growth potential
Moderate profitability with room for improvement
Solid revenue growth at 17.70% per year
Supporting Valuation Data
LegalZoom.com Inc (LZ) Detailed Analysis Report
Overall Assessment
This company scores 39/100 in our Smart Analysis, earning a F grade. Out of 9 metrics analyzed, 2 register as strengths (avg 9.0/10) while 7 fall into concern territory (avg 3.1/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Institutional Own., Price/Sales. Valuation metrics including Price/Sales (1.40) suggest the stock is attractively priced.
The Bear Case
The primary concerns are EPS Growth, Operating Margin, Price/Book. Some valuation metrics including Price/Book (6.23) suggest expensive pricing. Growth concerns include Revenue Growth at 17.70%, EPS Growth at -57.90%, which may limit upside. Profitability pressure is visible in Return on Equity at 11.60%, Operating Margin at 6.61%, Profit Margin at 2.04%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 11.60% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 17.70% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. EPS Growth and Operating Margin are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
LZ Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
LZ's Price-to-Sales ratio of 1.40x trades at a deep discount to its historical average of 3.36x (0th percentile). The current valuation is 90% below its historical high of 13.85x set in Jul 2021, and 0% above its historical low of 1.4x in Mar 2026. Over the past 12 months, the PS ratio has compressed from ~2.3x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for LegalZoom.com Inc (LZ) · INDUSTRIALS › SPECIALTY BUSINESS SERVICES
The Big Picture
LegalZoom.com Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 756M with 18% growth year-over-year. Profit margins are strong at 204.0%, reflecting pricing power and operational efficiency.
Key Findings
ROE of 1160.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 28M in free cash flow and 34M in operating cash flow. Earnings are translating into actual cash generation.
Earnings fell 58% YoY while revenue grew 18%. This gap usually reflects one-time items (tax benefits, write-offs) in the prior period, not an operational decline.
What to Watch Next
Valuation compression risk at a P/E of 74.8x. Any growth miss could trigger a sharp correction.
Sector dynamics: monitor SPECIALTY BUSINESS SERVICES industry trends, competitive moves, and regulatory changes that could impact LegalZoom.com Inc.
Bottom Line
LegalZoom.com Inc offers an attractive blend of growth (18% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(12 last 3 months)
| Insider | Type | Shares |
|---|---|---|
MILLER, NICOLE CHIEF LEGAL OFFICER | Sell | -23,325 |
| Insider | Type | Shares |
|---|---|---|
WATSON, NOEL BERTRAM Chief Operating Officer & CFO | Sell | -15,000 |
Data sourced from SEC Form 4 filings
Last updated: 8:24:06 AM
About LegalZoom.com Inc(LZ)
NASDAQ
INDUSTRIALS
SPECIALTY BUSINESS SERVICES
USA
LegalZoom.com, Inc. operates an online platform for legal and compliance solutions in the United States. The company is headquartered in Glendale, California.