Is Zillow Group, Inc. overvalued or undervalued?

As of 2 November 2021, Zillow Group, Inc. has moved from an attractive to a risky valuation grade. The company appears to be overvalued based on its current financial metrics. Key ratios include a Price to Book Value of 3.56, an EV to EBITDA of 136.12, and an EV to Sales of 6.91, which indicate significant valuation concerns relative to its peers.
In comparison to its peers, Block, Inc. is rated attractive with a P/E of 12.44 and an EV to EBITDA of 17.05, while Broadridge Financial Solutions, Inc. has a fair rating with a P/E of 46.07 and an EV to EBITDA of 24.67. Zillow's negative P/E and high EV to EBITDA ratio highlight its struggles in profitability and valuation. Over the past year, Zillow's stock has returned 38.20%, significantly outperforming the S&P 500's 17.14%, but this strong performance may not be sustainable given the company's current valuation metrics.