Zillow GroupBSP:Z2LL35 64 WACC % is 9.35% as of Jun. 26, 2026, which is 17% below its 10-year median of 11.27. GuruFocus rates BSP:Z2LL35 with a GF Score™ of 64/100 and a GF Value™ of R$159.47. The stock has 3 warning signs investors should review. Among 571 Interactive Media companies, Zillow Group ranks worse than 91.07% on this metric.
As of today (2026-06-26), Zillow Group's weighted average cost of capital is 9.35%%. Zillow Group's ROIC % is 0.29% (calculated using TTM income statement data).
Zillow Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
Zillow Group (BSP:Z2LL35) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Zillow Group's weighted average cost of capital is 9.35%%. Zillow Group's ROIC % is 0.29% (calculated using TTM income statement data).
Zillow Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
Zillow Group WACC % Historical Data
* Premium members only.
The historical data trend for Zillow Group's WACC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Internet Content & Information subindustry, Zillow Group's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Zillow Group WACC % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Zillow Group's WACC % distribution charts can be found below:
* The bar in red indicates where Zillow Group's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Zillow Group's market capitalization (E) is R$14290.848 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Zillow Group's latest one-year quarterly average Book Value of Debt (D) is R$2495.9624 Mil.
a) weight of equity = E / (E + D) = 14290.848 / (14290.848 + 2495.9624) = 0.8513
b) weight of debt = D / (E + D) = 2495.9624 / (14290.848 + 2495.9624) = 0.1487
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.376%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Zillow Group's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.376% + 1 * 6% = 10.376%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Zillow Group's interest expense (positive number) was R$92.014 Mil. Its total Book Value of Debt (D) is R$2495.9624 Mil.
Cost of Debt = 92.014 / 2495.9624 = 3.6865%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 21.185 / 342.836 = 6.18%.
Zillow Group's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.8513
*
10.376%
+
0.1487
*
3.6865%
*
(1 - 6.18%)
=
9.35%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Zillow Group (BSP:Z2LL35) has a WACC % of 9.35% as of Jun. 26, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Zillow Group and its competitors. This is 17% below median its historical median of 11.27. Over the past decade, Zillow Group's WACC % has ranged from 5.26 to 18.79. According to the industry distribution chart, Zillow Group ranks #520 out of 571 companies in the Interactive Media industry, placing it in the top 91.1%.
Is Zillow Group's WACC % too high?
Zillow Group's current WACC % of 9.35% is 17% below median its 10-year median of 11.27. Over the past 10 years, this metric has ranged from a low of 5.26 to a high of 18.79. The Interactive Media industry median WACC % is 7.09. Zillow Group's value of 9.35% is 31.9% above this industry median. Based on the distribution chart, Zillow Group ranks #520 out of 571 companies in the Interactive Media industry, which is in the bottom quartile relative to peers. Overall, Zillow Group has a GF Score™ of 64/100, reflecting its overall financial health beyond just this single metric.
How does Zillow Group's WACC % compare to MTCH and BILI?
According to the Interactive Media industry distribution chart, Zillow Group ranks #520 out of 571 companies for WACC %. This places Zillow Group in the lower half of its industry. The industry median WACC % is 7.09. Zillow Group's value of 9.35% is 31.9% above this benchmark. Historically, Zillow Group's own WACC % has ranged from 5.26 to 18.79 over the past decade. While the company's 10-year median is 11.27 vs. the industry median of 7.09, Zillow Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for an Interactive Media company?
The median WACC % among Interactive Media companies is 7.09, based on 571 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zillow Group's current WACC % of 9.35% is 31.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Zillow Group and its competitors. For the Interactive Media industry, the median WACC % is 7.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zillow Group's current WACC % is 9.35%, which is 17% below median its own 10-year median of 11.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zillow Group stock overvalued right now?
Zillow Group (BSP:Z2LL35) has a current WACC % of 9.35%. The stock's GF Value™ is R$159.47, compared to a current price of R$62.46 — trading 60.8% below its estimated fair value. The current WACC % is 9.35%, which is 17% below median its 10-year median of 11.27 and 31.9% above the Interactive Media industry median of 7.09. Zillow Group's overall GF Score™ is 64/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Zillow Group (BSP:Z2LL35), the current WACC % is 9.35% as of Jun. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Zillow Group (BSP:Z2LL35) Overvalued in 2026?
Based on GuruFocus' analysis, Zillow Group stock appears to be undervalued.
The current stock price of R$62.46 is trading 60.8% below its estimated GF Value™ of R$159.47.
Key valuation signals for BSP:Z2LL35:
WACC %: 9.35% (17% below median its 10-year median of 11.27)
GF Value™: R$159.47 vs. price of R$62.46 (60.8% below fair value)
Industry Position: 31.9% above the Interactive Media median (#520 of 571)
No single metric tells the full story. See the BSP:Z2LL35 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zillow Group Inc is a real estate technology company offering a digital platform that connects real estate customers with sellers, agents, loan officers, and other real estate-related professionals. With its tools and resources, Zillow helps real estate professionals grow their businesses, and for renters and housing providers, it offers a marketplace along with a set of end-to-end products and services to streamline applications, leases, payments, and more. The group operates various brands such as Zillow, Zillow Home Loans, Zillow Rentals, Zillow New Construction, Trulia, StreetEasy, Out East, HotPads, Follow Up Boss, ShowingTime, dotloop, and Zillow Closing. Its ecosystem spans the entire home journey from shopping to renting, buying, selling, and financing real estate.
64GF Score
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