Latest Ratios: P/E Ratio 91.6x · EV/EBITDA 17.5x · ROE 11.6%. (2010–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.3B | $1.8B | $1.4B | $2.2B | $1.5B | $3.2B | — | — | — | — |
| Enterprise Value | $1.1B | $1.7B | $1.2B | $2.0B | $1.3B | $2.9B | — | — | — | — |
| P/E Ratio → | 91.63 | 124.13 | 46.94 | 157.38 | — | — | — | — | — | — |
| P/S Ratio | 1.66 | 2.43 | 2.01 | 3.32 | 2.44 | 5.54 | — | — | — | — |
| P/B Ratio | 7.88 | 10.67 | 14.73 | 13.01 | 10.65 | 16.11 | — | — | — | — |
| P/FCF | 8.51 | 12.40 | 13.74 | 23.70 | 29.30 | 75.05 | — | — | — | — |
| P/OCF | 7.06 | 10.29 | 10.12 | 17.67 | 20.53 | 58.78 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.19 | 1.82 | 3.00 | 2.16 | 5.12 | — | — | — | — |
| EV / EBITDA | 17.48 | 26.80 | 17.06 | 40.30 | — | — | — | — | — | — |
| EV / EBIT | 75.16 | 49.07 | 28.47 | 61.91 | — | — | — | — | — | — |
| EV / FCF | — | 11.19 | 12.40 | 21.36 | 25.86 | 69.41 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 65.9% | 65.9% | 64.8% | 63.8% | 66.0% | 67.1% | 67.2% | 66.5% | 48.5% | 49.8% |
| Operating Margin | 1.9% | 1.9% | 5.2% | 3.2% | -6.7% | -14.8% | 10.4% | 15.5% | 4.0% | -3.1% |
| Net Profit Margin | 2.0% | 2.0% | 4.4% | 2.1% | -7.9% | -18.9% | 2.1% | 1.8% | 7.8% | -3.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.6% | 11.6% | 22.9% | 9.0% | -28.7% | -55.0% | — | — | — | — |
| ROA | 3.4% | 3.4% | 7.3% | 3.3% | -11.7% | -31.8% | 4.4% | 5.9% | 27.2% | -11.3% |
| ROIC | — | — | — | — | — | — | — | — | — | — |
| ROCE | 9.0% | 9.0% | 24.4% | 12.4% | -23.3% | -66.9% | 104.8% | 243.5% | 80.6% | -75.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.14 | 0.14 | 0.08 | 0.05 | 0.08 | — | — | — | — | — |
| Debt / EBITDA | 0.39 | 0.39 | 0.11 | 0.18 | — | — | 7.47 | 6.52 | 0.02 | — |
| Net Debt / Equity | — | -1.04 | -1.44 | -1.28 | -1.25 | -1.21 | — | — | — | — |
| Net Debt / EBITDA | -2.89 | -2.89 | -1.85 | -4.41 | — | — | 5.81 | 5.90 | -2.48 | — |
| Debt / FCF | — | -1.21 | -1.34 | -2.34 | -3.44 | -5.64 | 4.86 | 13.66 | -3.76 | — |
| Interest Coverage | 26.07 | 26.07 | 97.60 | 64.88 | -182.36 | -3.27 | 1.46 | 1.27 | 41.03 | -248.47 |
Net cash position: cash ($203M) exceeds total debt ($24M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.75 | 0.75 | 0.72 | 1.04 | 0.97 | 1.16 | 0.67 | 0.44 | 0.95 | 0.81 |
| Quick Ratio | 0.75 | 0.75 | 0.72 | 1.04 | 0.97 | 1.10 | 0.67 | 0.44 | 0.95 | 0.81 |
| Cash Ratio | 0.64 | 0.64 | 0.53 | 0.86 | 0.76 | 1.05 | 0.57 | 0.31 | 0.63 | 0.62 |
| Asset Turnover | — | 1.42 | 1.82 | 1.48 | 1.53 | 1.33 | 1.87 | 2.04 | 2.92 | 3.39 |
| Inventory Turnover | — | — | — | — | — | 13.92 | — | — | — | — |
| Days Sales Outstanding | — | 11.51 | 6.54 | 6.50 | 8.21 | 6.75 | 6.63 | 9.09 | 8.54 | 6.54 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | 0.0% | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | 2.9% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2011 | FY 2010 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.1% | 0.8% | 2.1% | 0.6% | — | — | — | — | — | — |
| FCF Yield | 11.8% | 8.1% | 7.3% | 4.2% | 3.4% | 1.3% | — | — | — | — |
| Buyback Yield | 6.4% | 4.4% | 12.0% | 2.5% | 6.3% | 0.0% | — | — | — | — |
| Total Shareholder Yield | 6.4% | 4.4% | 12.0% | 2.5% | 6.3% | 0.0% | — | — | — | — |
| Shares Outstanding | — | $185M | $183M | $194M | $196M | $198M | $197M | $125M | $125M | $125M |
High Customer Acquisition Costs
Based on current market data, LegalZoom trades at a forward P/E of 8.19, which appears to contrast sharply with its trailing P/E of 75.88, suggesting that investors are pricing in a significant, yet unproven, expansion in bottom-line profitability relative to historical performance metrics.
The wide divergence between trailing and forward multiples implies that the market is betting on a rapid transition from a high-CAC transactional model to a high-margin subscription ecosystem. However, given the persistent compression in operating margins, this valuation may be overly optimistic if the company fails to achieve the necessary scale to offset its aggressive marketing expenditures.
As reported in recent financial statements, LegalZoom maintains a robust gross margin of 64.0%, yet the operating margin has dwindled to 1.3%, indicating that the company's core service delivery is highly efficient while its overhead and marketing costs remain disproportionately high relative to revenue.
The disconnect between gross and operating profitability suggests that the company's competitive advantage in document automation is being eroded by the high cost of maintaining brand salience. Investors should monitor whether the company can successfully pivot toward higher-value compliance services to improve its operating leverage, as the current structure appears to struggle with scalability.
According to quarterly filings, LegalZoom's asset turnover ratio has remained stagnant near 0.40, reflecting a capital-intensive operational model that requires significant investment in digital infrastructure and marketing to generate each dollar of revenue compared to more efficient software-as-a-service peers in the industry.
The low asset turnover suggests that the company's growth is heavily dependent on continuous reinvestment rather than organic efficiency gains. This warrants further investigation into whether the current customer acquisition strategy is yielding a sufficient return on invested capital, or if the company is simply buying market share in a highly competitive environment.
Based on the most recent quarterly data, LegalZoom reports a current ratio of 0.71, which indicates that the company's short-term liquidity position is currently strained and may leave little room for error should there be a sudden downturn in new business formation volumes.
A current ratio below 1.0 suggests that the company is relying on the continuous inflow of cash from new subscriptions to meet its immediate obligations. While the company maintains a cash balance of $203M, the lack of a significant liquidity buffer may force management to prioritize short-term cash preservation over long-term strategic investments.
The most commonly misapplied metric for LegalZoom is the standard P/S ratio, which obscures the company's high reliance on low-margin transactional revenue and fails to account for the significant stock-based compensation that dilutes the true economic value of the company's subscription-led growth strategy.
Investors should instead focus on the 'Attach Rate' of ancillary services and the 'Subscription Renewal Rate' as more accurate indicators of long-term value creation. Relying on P/S multiples ignores the reality that not all revenue is created equal, particularly when a large portion of the top line is driven by one-time filings that carry high customer acquisition costs.
Includes 30+ ratios · 9 years · Updated daily
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Quick answers to the most common questions about buying LZ stock.
LegalZoom.com, Inc.'s current P/E ratio is 91.6x. The historical average is 109.5x. This places it at the 33th percentile of its historical range.
LegalZoom.com, Inc.'s current EV/EBITDA is 17.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 28.1x.
LegalZoom.com, Inc.'s return on equity (ROE) is 11.6%. The historical average is -8.0%.
Based on historical data, LegalZoom.com, Inc. is trading at a P/E of 91.6x. This is at the 33th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
LegalZoom.com, Inc. has 65.9% gross margin and 1.9% operating margin.
LegalZoom.com, Inc.'s Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.