LegalZoom.com, Inc.

Valuation Analysis

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. 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 subscri

LegalZoom.com, Inc. Stock at a Glance

LegalZoom.com, Inc. (LZ) is currently trading at $5.91 with a market capitalization of $1B. The trailing P/E ratio stands at 98.5x, with a forward P/E of 7.13x. The 52-week range spans from $5.28 to $12.40; the current price is 52.3% below the yearly high. Year-over-year revenue growth stands at +12.9%. The net profit margin stands at 1.46%.

💰 Dividend

LegalZoom.com, Inc. currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

6 analysts rate LegalZoom.com, Inc. (LZ) on consensus: Buy. The average price target is $8.50, implying +43.82% from the current price. Analyst price targets range from $6.50 to $11.00.

LegalZoom.com, Inc.: The Investment Case in Detail

LegalZoom.com, Inc. (LZ) operates in the Industrials — specifically Specialty Business Services — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 12.9% pace year-over-year, suggesting the business model continues to find new customers and pricing power. With a gross margin near 65.89%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Wall Street consensus sits at Buy with an average price target implying roughly 43.82% upside from current levels — analyst sentiment is firmly constructive.

The Bear Case

With a net margin of just 1.46%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. A trailing P/E above 50 combined with revenue growth below 20% is a dangerous combination — the market is paying a steep growth multiple for what is, by the data, only moderately fast expansion. Short interest sits at 12.92% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valuation in Context

The EV/EBITDA multiple of 27.75x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

What to Watch Next

• The forward P/E of 7.13x is meaningfully below the trailing 98.5x — analysts expect earnings to step up; the next earnings release is the test.
• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.
• The analyst consensus price target implies 43.82% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to market-like volatility, elevated short interest (12.92%).

Trading Data

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