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  "documentTitle": "Zillow Group, Inc. (Z)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-03-05 00:00:00",
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  "notes": "The slide highlights that Zillow's Adj. EBITDA is heavily impacted by stock-based compensation, arguing for FCF-based valuation.",
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      "text": "Considering that Zillow's Adj. EBITDA is virtually all stock-based compensation, Spruce Point believes free cash flow is a much better figure to value the Company. Zillow trades at a much higher multiple of free cash flow then nearly all its peers. At over 6x sales and ~37x+ FCF, we believe that Zillow is one of the most richly valued stocks among its peer group.",
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      "kind": "disclaimer",
      "text": "Comparable company estimates based on consensus; Zillow estimates based on Spruce Point analysis",
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      "kind": "metric",
      "text": "EV / FCF: 36.8x",
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      "text": "Peer comparison table showing Stock Price, Ent. Value, Margins, and Multiples (EV/Sales, EV/EBITDA, EV/FCF) for Zillow and peers.",
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      "kind": "title",
      "text": "Zillow's Fundamentals Don't Deserve A Growth Multiple",
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      "arcName": "Overcoming the Monster",
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      "evidence": "The document concludes with a predicted victory for Spruce Point's short thesis, with a 40-60% downside risk to Zillow's stock price.",
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