In the video below, Zillow (NASDAQ:ZG) CEO Spencer Rascoff answers a question about the company's nosebleed price-to-earnings multiple. Lofty P/E ratios may scare some investors, but it's important to understand the underlying growth prospects that result in such premiums.
Austin Smith owns shares of Zillow. The Motley Fool recommends Zillow. The Motley Fool owns shares of Zillow. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.