March 1, 2017

Valens Equities Weekly Equity Idea Highlight for March 1, 2017 – Zillow Group, Inc.


This week the Valens Securities team highlights our most interesting equity insight from across our tools and our analysis.

Pessimistic market outlook for growth and ROA’, controlling market position with huge addressable market opportunities and management confidence about their strategy spell equity upside

veih 2017 03 01

ZG is trading at the low end of historical valuations with a 6.0x V/A’ and in the middle of historical valuations with a 31.1x V/E’. After the acquisition of Trulia, ZG has seen ROA’ rise from 17% to 23%, which is projected to remain around 20% going forward. However, the market is expecting ROA’ to fall to 13%, levels not seen since 2011, with Asset’ growth at the low end of historic growth rates.

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