Z Looks 59.3% Undervalued on GF Value™ at $32.12

Zillow (Z) faces legal setback as a court denies its injunction request against MRED, risking loss of Chicago listings. Stock fell 2% to $31.96. GF Value™ estimates Zillow is 59.5% undervalued at $31.96 vs. $78.88 intrinsic value. Insiders sold $15.1M shares over 12 months. GF Score™ is 64/100, with strong financial health but weak profitability.

Zillow is facing a shareholder lawsuit alleging antitrust risks and misleading statements regarding its deal with Redfin. The complaint claims executives sold $81M in stock before the FTC lawsuit and stock price drop. The plaintiff seeks damages and governance changes. Zillow denies wrongdoing, calling the deal pro-competitive.

Zillow faces antitrust scrutiny over agreements with Redfin and practices like conditioning agent referrals on using its lending service. The FTC settled with Zillow and states over claims of anticompetitive agreements, while a class-action lawsuit by real estate agents is ongoing. Compass previously sued but dismissed its case after Zillow changed its listing policy. The FTC's case focused on two agreements between Zillow and Redfin, including a $100 million partnership and an exclusive content

The FTC and five states filed a settlement requiring Zillow and Redfin to unwind a $100M deal where Zillow paid Redfin to exit the multifamily rental marketplace. The agreement, deemed anticompetitive, involved Redfin transferring customers and employees to Zillow and agreeing not to compete for up to nine years. The settlement mandates Redfin to rebuild its marketplace and imposes restrictions on Zillow to facilitate competition.

Zillow Group and Redfin Corp. settled with the FTC and NY AG, ending an agreement that restricted competition in apartment rental advertising. Redfin must rebuild its business, and both companies must pay $2 million. The settlement aims to restore competition and lower costs for renters and landlords.

Zillow paid Redfin $100M in 2025, leading Redfin to exit the apartment advertising business. The FTC filed a settlement in 2026, alleging the deal was anticompetitive. The FTC claims Zillow paid to reduce competition, while Zillow and Redfin argue it was pro-consumer. The settlement requires Redfin to relaunch its own business within six months. The FTC estimates Zillow customers paid 14.5% more per listing after Redfin's exit.