LEGALZOOM.COM, Inc. (LZ) intrinsic value & 10-year financials

LEGALZOOM.COM, Inc. (LZ) has a Graham intrinsic value of $2.28 per share. At $6.06 on Oct 17, 2026, the stock trades 166% above that value. Over the last 8 fiscal years revenue grew 10.8% a year to $756.0M, with an average return on invested capital of 7.2%.

Graham intrinsic value
$2.28
Share price (Oct 17, 2026)
$6.06
Price vs Graham value
166% above
Market cap
$1.1B
Revenue (FY2025)
$756.0M
Revenue growth (8-yr CAGR)
10.8%
ROIC (10-yr avg)
7.2%
Free cash flow (FY2025)
$147.9M

LZ 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $756.0M $15.4M $0.08 $147.9M 3.3% -39.0%
FY2024 $681.9M $30.0M $0.16 $99.9M 5.2% -53.4%
FY2023 $660.7M $14.0M $0.07 $92.7M 3.2% -24.0%
FY2022 $620.0M -$48.7M -$0.25 $51.7M -6.7% 105.0%
FY2021 $575.1M -$108.7M -$0.67 $42.4M -14.8% 80.7%
FY2020 $470.6M $9.9M $0.06 $82.5M 10.4% -26.2%
FY2019 $408.4M $7.4M $0.04 $34.3M 11.3% —
FY2018 — — — — — —

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

LEGALZOOM.COM, INC. revenue growth over the past decade is N/A; insufficient history prevents a reliable 10-year CAGR calculation.

LEGALZOOM.COM, INC. has historically struggled to out-earn its cost of capital, averaging just 7.2% ROIC.

LEGALZOOM.COM, INC. capital allocation metrics are N/A for the decade; share count and net debt history are incomplete.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, LEGALZOOM.COM, INC. is modeled at 12.2% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $2.28 per share.

LZ stock: frequently asked questions

What is the intrinsic value of LEGALZOOM.COM, Inc. (LZ) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 12.2% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, LZ's intrinsic value is about $2.28 per share.

Is LZ stock undervalued?

At $6.06 (close on Oct 17, 2026), LZ trades 166% above its Graham value of $2.28. On Graham's terms the shares look fully priced. A formula is a starting point for research, not a recommendation.

Does LEGALZOOM.COM, Inc. generate free cash flow?

LEGALZOOM.COM, Inc. generated $147.9M of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 7 of the last 7 reported years.

What is LZ's return on invested capital?

Average ROIC over the last 8 fiscal years was 7.2%, and average return on equity was 10.5%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this LZ data come from?

From LEGALZOOM.COM, Inc.'s annual 10-K filings on SEC EDGAR, most recently filed Aug 5, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

Similar computer processing & data preparation stocks