Is LegalZoom.com, Inc. overvalued or undervalued?

As of 8 August 2025, the valuation grade for LegalZoom.com, Inc. moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its current metrics, with a P/E ratio of 49, a Price to Book Value of 8.87, and an EV to EBITDA of 46.03. In comparison, peers such as Shift4 Payments, Inc. have a P/E of 14.01 and EV to EBITDA of 12.20, while CBIZ, Inc. shows a P/E of 47.91 and an EV to EBITDA of 26.38, highlighting the relative expense of LegalZoom.
Despite strong recent performance, with a year-to-date return of 47.8% compared to the S&P 500's 12.22%, the valuation metrics suggest that LegalZoom may not sustain such growth at its current price levels. Overall, the company's high valuation ratios and the peer comparison indicate that it is overvalued in the current market context.