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LegalZoom.com, Inc (LZ) Fair Value & Analysis

Industrials · US · Market cap $944M

LC LegalZoom.com, Inc logo LegalZoom.com, Inc LZ · US
Price$5.77
Fair Value$3.17
Upside-45.0%
Quality61/100
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Mixed Growth
Thin margins · 1.5% net margin
High debt · generates free cash flow
Trails peers (2/13)
Narrow moat 35/100
Evidence: High Range $2.38 – $3.96 Share as image

Fair value as of: Jul 17, 2026

From 20 valuation models · updated 24 days ago

Fair value updated Jul 17, 2026, revised from $2.13 to $3.17 (+48.9%) since Jun 24, 2026. Share price −20.7% over the past month.

A solid business, but screening 45% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case ($3.96). The favourable scenario is already priced in.
  • Solid but not exceptional quality (61/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

$39.85 $5.48 Fair Value $3.17 Jun 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range $5.48 – $39.85 · fair‑value band $2.38 – $3.96 · the $5.77 price screens above the $3.17 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

LegalZoom.com, Inc (LZ) currently trades at $5.77, while our model-based Fair Value estimate is $3.17, implying the stock looks roughly 45.0% overvalued today. The Quality Score stands at 61/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, LegalZoom.com, Inc generated revenue of $780M at a net margin of 1.5%. Revenue grew 12.9% year over year. It earns a return on equity of 6.8%. The balance sheet holds a net cash position of $179M. Fundamentals as of Jul 17, 2026

Our scenario range runs from $2.38 (bear case) to $3.96 (bull case); at $5.77, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 53% below its 52-week high and 9% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -35% fair-value upside, at -45%, LZ screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $7.96 $15.94 $27.08 80
Residual Income $0.8000 $0.8600 $0.9500 76
Rev-Margin DCF $2.21 $3.80 $6.00 74
All 20 models by family
DCF Models
FCF DCF $8.32 $15.32 $31.44 38
Owner Earnings $0.4300 $2.39 $5.76 31
5Y Revenue Exit $2.21 $3.68 $5.35 39
5Y EBITDA Exit $3.86 $7.35 $11.72 41
5Y P/E Exit $2.58 $4.50 $6.59 38
10Y Revenue Exit $4.32 $6.63 $9.74 36
10Y EBITDA Exit $5.38 $9.20 $15.01 37
10Y P/E Exit $4.57 $7.20 $10.77 35
Earnings-Based
Graham-Dodd $0.6100 $3.64 $5.07 54
Lynch FV $1.03 $1.48 $1.92 50
PEG = 1.0 $1.03 $1.48 $1.92 46
Multiples
P/E Multiple $1.42 $1.89 $2.36 63
P/S Multiple $1.15 $1.53 $1.91 58
P/B Multiple $1.15 $1.53 $1.91 55
EV/EBITDA $1.71 $2.88 $4.05 54
Asset-Based
NCAV (Graham) $0.5000 $0.6700 $1.00 50
Growth DCF
Growth DCF $7.96 $15.94 $27.08 80
Rev-Margin DCF $2.21 $3.80 $6.00 74
Economic Profit
Residual Income $0.8000 $0.8600 $0.9500 76
Growth Earnings
Growth-Adj P/E $1.51 $2.16 $2.80 68

Widest divergence: DCF Models ($6.63) versus Asset-Based ($0.6700). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $780M
Revenue growth (YoY) +12.9%
Net margin 1.5%
Return on equity 6.8%
Free cash flow $148M FY2025
P/E ratio 91.7
More key figures
Operating margin 1.9%
EPS (TTM) $0.0600
EPS growth (YoY) -78.2%
Net cash $179M FY2025

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 61/100

Of which business quality 63 · Market factors (momentum, volatility) 13

Profitability 59
Margins and returns on capital today
Quality Growth 31
Are margins and returns improving?
Cashflow 86
Earnings quality: real cash, not paper profit
Fin. Strength 48
Balance sheet, leverage, solvency risk
Investment 70
Disciplined investing over empire-building
Low Volatility 19
Calm price path (market factor)
Momentum 15
Price trend over the last 3–12 months (market factor)
52W Momentum 4
Distance to the 52-week high (market factor)
Net Issuance 85
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

LegalZoom.com, Inc. together with its subsidiaries, operates an online platform that supports the legal, compliance, and business management needs of small businesses and consumers in the United States.

Full company description

LegalZoom.com, Inc. together with its subsidiaries, operates an online platform that supports the legal, compliance, and business management needs of small businesses and consumers in the United States. The company's platform offers business formation products, such as limited liability company, incorporation of C and S corporations, nonprofit formations, doing-business-as, corporate changes and filings, business licenses, legal forms, and beneficial ownership information reports; and intellectual property products consisting of trademark and patent applications, and copyright registrations. It also provides consumer, estate planning, and other services comprising last will and testament, living will, living trust, power of attorney, and legal forms. In addition, the company offers subscriptions services, including registered agent, compliance, small business attorney advice through our legal plans, compliance concierge, compliance and legal concierge, reinstatement concierge and compliance concierge, business concierge, business and legal concierge, consumer attorney advice through legal plans, business licenses, virtual mail and check deposit services, estate planning bundle, bookkeeping, e-signature, and trademark monitoring. The company was incorporated in 1999 and is headquartered in Mountain View, California.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

LegalZoom.com, Inc reported revenue of $756M in FY2025 versus $575M in FY2021, a compound +7.1%/yr. Reported net income was $15.4M in FY2025.

Growth Quality 73/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$756M
Latest YoY
+10.9%
Avg. growth/yr (3Y)
+6.8%
Avg. growth/yr (5Y)
+9.9%
Avg. growth/yr (16Y)
+13.2%
Revenue +7.1%/yr
FY21 $575M
FY22 $620M
FY23 $661M
FY24 $682M
FY25 $756M
Net income
FY21 −$109M
FY22 −$48.7M
FY23 $14.0M
FY24 $30.0M
FY25 $15.4M

LZ screens 45% overvalued. Compare with Cintas Corporation →

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Cite: Fair Value Calculator (2026). "LegalZoom.com, Inc Fair Value". https://www.fairvalue-calculator.com/stock/LZ

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Specialty Business Services · 255 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 61 · Above median
Fair Value upside −45% · Below median
Return on equity (TTM) 7% · Below median
Return on assets 2% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 2% · Below median
Revenue growth 13% · Above median
Debt / equity 2.98× · Higher than 75% of peers

Valuation Multiples vs Specialty Business Services median · lower = cheaper

P/E (TTM) 91.7× · Pricier than 75% of peers
P/B 5.49× · Pricier than 75% of peers
P/S (TTM) 1.21× · Pricier than median
P/FCF 6.4× · Pricier than median
EV/EBITDA 41.1× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 24
FUTURE 65 · sector 25
PAST 27 · sector 33
HEALTH 0 · sector 92
DIVIDEND 0 · sector 54

VALUE 0: the price sits above our fair-value range.

Insider activity: 44/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Specialty Business Services stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
Cintas Corporation CTAS $206.25 $95.30 -54%
RELX PLC RELX $33.70 $32.49 -4%
Thomson Reuters Corporation TRI C$133.87 C$70.40 -47%
Copart, Inc CPRT $27.61 $28.59 +4%
Global Payments Inc GPN $80.49 $69.67 -13%
RB Global, Inc RBA C$156.43 C$49.14 -69%
Brambles Limited BXB A$18.79 A$12.28 -35%
UL Solutions Inc ULS $87.76 $33.62 -62%
Wolters Kluwer N.V WKL €62.56 €103.99 +66%
Aramark ARMK $56.74 $13.73 -76%

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Frequently asked questions

Is LegalZoom.com, Inc (LZ) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of $3.17 versus a price of $5.77, about −45% (overvalued).
What is the fair value of LZ?
Our model-based fair value for LegalZoom.com, Inc is $3.17 (as of Jul 17, 2026), built from audited fundamentals. The current price is $5.77.
What is the quality score of LZ?
LegalZoom.com, Inc has a Quality Score of 61/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of LegalZoom.com, Inc (LZ)?
LegalZoom.com, Inc reported trailing-twelve-month revenue of about $780M (latest available figure, as of Jul 17, 2026).
What is the net profit margin of LZ?
The net profit margin of LegalZoom.com, Inc is about 1.5%, meaning it keeps roughly 1.5% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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