Is LegalZoom.com, Inc. overvalued or undervalued?

As of 12 June 2025, LegalZoom.com, Inc. has moved from an expensive valuation grade to fair. The company is currently fairly valued, with a P/E ratio of 49, an EV to EBITDA of 20.40, and a PEG ratio of 0.96. In comparison to its peers, Laureate Education, Inc. has a more attractive P/E of 15.34, while ICF International, Inc. is also fair with a P/E of 16.67, indicating that LegalZoom's valuation is higher than some of its competitors.
Despite the fair valuation, LegalZoom's return metrics show some volatility, with a year-to-date return of 15.18%, which outpaces the S&P 500's 2.44% during the same period. However, over the longer term, the company's performance has lagged, particularly over three years with a return of -32.1% compared to the S&P 500's 58.74%. This mixed performance suggests that while the current valuation is fair, investors should be cautious given the historical underperformance relative to broader market indices.