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    Zillow Group (ZG) Could Be 33% Below Fair Value As Earnings And Settlement Land

    Simply Wall St·11/08/2026 02:24:43
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    Why Zillow Group’s latest quarter matters

    Zillow Group (ZG) paired higher third quarter sales and revenue with a swing to a sizable net loss, while also agreeing to a large settlement tied to past Zillow Offers disclosures.

    The business reported third quarter sales of US$709 million and revenue of US$724 million compared with US$662 million and US$676 million a year earlier. At the same time, results moved from a net profit of US$10 million to a loss of US$158 million, which translated into a basic and diluted loss per share from continuing operations of US$0.70 compared with earnings of US$0.04.

    For the first nine months of 2026, Zillow Group recorded sales of US$2,164 million and revenue of US$2,204 million, set against US$1,890 million and US$1,929 million in the prior period. Over that span, the firm moved from net income of US$20 million to a net loss of US$116 million, with basic and diluted earnings per share from continuing operations of US$0.08 turning into a loss of US$0.51.

    Alongside the earnings release, Zillow Group reached a proposed US$212.5 million settlement related to allegations around its former Zillow Offers home buying business. That agreement followed the Supreme Court’s decision in October 2026 not to review class certification in the Jaeger v. Zillow Group Inc. case, leaving in place earlier rulings that allowed investors to pursue their claims.

    The share price tells a mixed story. Zillow Group trades at US$30.36 after a 7 day share price return that declined 4.8%, even though the 30 day share price return gained 8.5% and the year to date share price return fell 53.7%. The 1 year total shareholder return fell 57.1%, pointing to fading longer term momentum despite a short term bounce around the earnings release, the legal settlement and the upcoming investor conference appearance.

    Scan how investors are pricing legal and earnings risk beyond Zillow Group by reviewing our curated list of 29 resilient stocks with low risk scores.

    Zillow Group still runs a well known real estate platform, but the latest losses, legal costs and share price drop raise a sharper question: Is this digital housing hub actually priced attractively today or not?

    Most Popular Narrative: 33% Undervalued

    Against the last close of $30.36, the most followed narrative pegs Zillow Group’s fair value at $45.59, framing the settlement and recent losses as setbacks inside a longer term digital real estate story rather than the final verdict on the stock.

    The shift toward integrated, end to end digital transaction ecosystems (like Zillow 360 and Enhanced Markets) is enabling Zillow to capture more ancillary services revenue (mortgages, rentals, software). This is reducing dependence on advertising and expanding top line growth, as well as supporting EBITDA margin expansion through operational efficiencies.

    See why 27 investors see Zillow Group as 33% undervalued.

    Result: Fair Value of $45.59 (UNDERVALUED)

    Still, the Zillow Group story can break if housing activity stays weak for longer than analysts expect and if the Preferred agent rollout continues to delay revenue timing.

    Find out about the key risks to this Zillow Group narrative.

    Next Steps

    With sentiment on Zillow Group clearly split, you can move faster than the crowd by checking the underlying data and pressure testing the bullish angles yourself. To see exactly what some investors find encouraging, review the 2 key rewards.

    Looking for more investment ideas beyond Zillow Group?

    If Zillow Group has you rethinking risk, do not stop here. Broaden your watchlist with a few focused idea sets that many investors ignore until it is too late.