Table 32: Zillow estimate summary

Table 32: Zillow estimate summary 1Q17 2017 2017 2018 Revenue BofAML est. $239 $261 $1,062 $1,307 Growth Y/Y% 25% 23% Street $236 $257 $1,048 $1,258 BofAML vs. Street Above Above Above Above EBITDA BofAML est. $40 $51 $215 $313 Street $39 S46 $211 $298 BofAML vs. Street Above Above Above Above EPS BofAML est. $0.06 $0.11 $0.48 $0.89 Street $0.05 $0.07 $0.44 $0.80 BofAML vs. Street Above Above Above Above Source: BofA Merrill Lynch Global Research estimates Zillow has effectively captured the online U.S. real estate market, allowing them to accelerate monetization and access to a large TAM with $87bn in total real estate commissions paid in 2016 and Zillow powering just 5% of the commissions through its Premier Agent platform. Although there is potential for the mortgage business to create a headwind if the CFPB issued a negative ruling against Zillow, we still like the stock into the quarter, as we prefer business with minimal competition, and believe that the high ROI of the real estate premium platform to real estate agents will ensure agents buy placements on Zillow regardless of mortgage broker involvement. We maintain our $42 PO based on a 6x our 2018E EV/Sales and supported by our DCF valuation. Our multiple is roughly in-line for online real estate lead generation sites in other countries operating in developed countries. Bankof America 2 Internet/e-Commerce | 06 April2017 49 Merrill Lynch HOUSE_OVERSIGHT_014935