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CoStar Group

Nasdaq:CSGP
Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CSGP
Nasdaq
$23B
Market Cap
  1. Home
  2. US
  3. Commercial Services
Company description

CoStar Group, Inc. provides information, analytics, and online marketplaces to the commercial real estate industry in the United States and the United Kingdom. The last earnings update was 23 days ago. More info.


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CSGP Share Price and Events
7 Day Returns
-2.4%
NasdaqGS:CSGP
-2.8%
US Professional Services
-3.1%
US Market
1 Year Returns
43.8%
NasdaqGS:CSGP
6.8%
US Professional Services
-1.7%
US Market
CSGP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
CoStar Group (CSGP) -2.4% 6.1% 19.6% 43.8% 197.2% 316.3%
US Professional Services -2.8% -1% 8.2% 6.8% 42.6% 60.6%
US Market -3.1% -5.3% -1.2% -1.7% 28.2% 35%
1 Year Return vs Industry and Market
  • CSGP outperformed the Professional Services industry which returned 6.8% over the past year.
  • CSGP outperformed the Market in United States of America which returned -1.7% over the past year.
Price Volatility
CSGP
Industry
5yr Volatility vs Market
Related Companies

CSGP Value

 Is CoStar Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of CoStar Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for CoStar Group.

NasdaqGS:CSGP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:CSGP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.846 (1 + (1- 21%) (0.63%))
0.899
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.899 * 5.96%)
8.09%

Discounted Cash Flow Calculation for NasdaqGS:CSGP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for CoStar Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:CSGP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.09%)
2020 437.21 Analyst x7 404.49
2021 545.26 Analyst x5 466.70
2022 688.20 Analyst x2 544.95
2023 817.48 Analyst x2 598.88
2024 922.51 Est @ 12.85% 625.24
2025 1,013.03 Est @ 9.81% 635.20
2026 1,090.91 Est @ 7.69% 632.84
2027 1,158.55 Est @ 6.2% 621.77
2028 1,218.33 Est @ 5.16% 604.91
2029 1,272.30 Est @ 4.43% 584.43
Present value of next 10 years cash flows $5,719.41
NasdaqGS:CSGP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,272.30 × (1 + 2.73%) ÷ (8.09% – 2.73%)
$24,385.10
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $24,385.10 ÷ (1 + 8.09%)10
$11,201.34
NasdaqGS:CSGP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,719.41 + $11,201.34
$16,920.75
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $16,920.75 / 36.55
$462.97
NasdaqGS:CSGP Discount to Share Price
Calculation Result
Value per share (USD) From above. $462.97
Current discount Discount to share price of $618.85
= -1 x ($618.85 - $462.97) / $462.97
-33.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of CoStar Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for CoStar Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are CoStar Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CSGP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $8.03
NasdaqGS:CSGP Share Price ** NasdaqGS (2019-08-16) in USD $618.85
United States of America Professional Services Industry PE Ratio Median Figure of 39 Publicly-Listed Professional Services Companies 18.95x
United States of America Market PE Ratio Median Figure of 3,093 Publicly-Listed Companies 17.02x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of CoStar Group.

NasdaqGS:CSGP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CSGP Share Price ÷ EPS (both in USD)

= 618.85 ÷ 8.03

77.07x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CoStar Group is overvalued based on earnings compared to the US Professional Services industry average.
  • CoStar Group is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does CoStar Group's expected growth come at a high price?
Raw Data
NasdaqGS:CSGP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 77.07x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
18.5%per year
United States of America Professional Services Industry PEG Ratio Median Figure of 32 Publicly-Listed Professional Services Companies 1.79x
United States of America Market PEG Ratio Median Figure of 2,115 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

NasdaqGS:CSGP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 77.07x ÷ 18.5%

4.17x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CoStar Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on CoStar Group's assets?
Raw Data
NasdaqGS:CSGP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $87.49
NasdaqGS:CSGP Share Price * NasdaqGS (2019-08-16) in USD $618.85
United States of America Professional Services Industry PB Ratio Median Figure of 62 Publicly-Listed Professional Services Companies 2.52x
United States of America Market PB Ratio Median Figure of 5,261 Publicly-Listed Companies 1.67x
NasdaqGS:CSGP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CSGP Share Price ÷ Book Value per Share (both in USD)

= 618.85 ÷ 87.49

7.07x

* Primary Listing of CoStar Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CoStar Group is overvalued based on assets compared to the US Professional Services industry average.
X
Value checks
We assess CoStar Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. CoStar Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CSGP Future Performance

 How is CoStar Group expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
18.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is CoStar Group expected to grow at an attractive rate?
  • CoStar Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • CoStar Group's earnings growth is expected to exceed the United States of America market average.
  • CoStar Group's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CSGP Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CSGP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 18.5%
NasdaqGS:CSGP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 14.3%
United States of America Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 32.1%
United States of America Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 6.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:CSGP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CSGP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,480 806 661 2
2022-12-31 2,168 684 557 2
2021-12-31 1,845 589 448 8
2020-12-31 1,603 489 369 11
2019-12-31 1,389 441 301 11
NasdaqGS:CSGP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 1,293 450 291
2019-03-31 1,247 411 271
2018-12-31 1,192 335 238
2018-09-30 1,130 292 199
2018-06-30 1,072 259 174
2018-03-31 1,012 243 153
2017-12-31 965 235 123
2017-09-30 930 215 108
2017-06-30 895 209 97
2017-03-31 864 217 90
2016-12-31 838 201 85
2016-09-30 812 210 78

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • CoStar Group's earnings are expected to grow by 18.5% yearly, however this is not considered high growth (20% yearly).
  • CoStar Group's revenue is expected to grow by 14.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:CSGP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from CoStar Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CSGP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 19.00 20.15 17.85 2.00
2022-12-31 15.84 16.58 15.09 2.00
2021-12-31 12.24 13.56 11.54 7.00
2020-12-31 9.98 10.91 9.32 9.00
2019-12-31 8.23 8.51 7.83 9.00
NasdaqGS:CSGP Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 8.03
2019-03-31 7.51
2018-12-31 6.61
2018-09-30 5.54
2018-06-30 4.98
2018-03-31 4.48
2017-12-31 3.70
2017-09-30 3.34
2017-06-30 3.01
2017-03-31 2.81
2016-12-31 2.64
2016-09-30 2.44

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • CoStar Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess CoStar Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
CoStar Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CSGP Past Performance

  How has CoStar Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare CoStar Group's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • CoStar Group has delivered over 20% year on year earnings growth in the past 5 years.
  • CoStar Group's 1-year earnings growth exceeds its 5-year average (66.6% vs 50.5%)
  • CoStar Group's earnings growth has exceeded the US Professional Services industry average in the past year (66.6% vs 34.4%).
Earnings and Revenue History
CoStar Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from CoStar Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CSGP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 1,293.28 290.69 526.35 107.78
2019-03-31 1,246.54 271.27 516.56 105.00
2018-12-31 1,191.83 238.33 516.52 100.94
2018-09-30 1,130.25 199.03 514.47 97.15
2018-06-30 1,072.26 174.45 496.54 90.89
2018-03-31 1,012.40 152.80 470.17 89.39
2017-12-31 965.23 122.70 451.49 88.85
2017-09-30 929.55 108.06 439.80 86.92
2017-06-30 894.73 97.09 437.09 84.74
2017-03-31 864.44 90.48 421.50 81.14
2016-12-31 837.63 85.07 419.78 76.40
2016-09-30 812.33 78.49 408.33 73.26
2016-06-30 788.70 49.93 413.92 70.95
2016-03-31 752.48 19.38 425.57 68.25
2015-12-31 711.76 -3.47 417.73 65.76
2015-09-30 674.85 -12.53 397.15 62.75
2015-06-30 638.83 5.79 351.62 59.92
2015-03-31 615.88 29.00 296.12 58.22
2014-12-31 575.94 44.87 254.22 55.43
2014-09-30 535.45 43.75 231.51 53.33
2014-06-30 494.70 41.84 211.01 50.66
2014-03-31 455.99 41.88 190.41 47.01
2013-12-31 440.94 29.73 195.66 46.76
2013-09-30 425.42 21.65 192.69 45.19
2013-06-30 409.12 17.38 188.75 43.35
2013-03-31 385.34 2.37 184.02 39.84
2012-12-31 349.94 9.92 156.07 32.76
2012-09-30 316.02 10.38 139.74 27.33

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • CoStar Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • CoStar Group used its assets more efficiently than the US Professional Services industry average last year based on Return on Assets.
  • CoStar Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess CoStar Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
CoStar Group has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CSGP Health

 How is CoStar Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up CoStar Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • CoStar Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • CoStar Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of CoStar Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • CoStar Group has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from CoStar Group Company Filings, last reported 1 month ago.

NasdaqGS:CSGP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 3,204.07 0.00 1,297.81
2019-03-31 3,128.61 0.00 1,232.82
2018-12-31 3,021.94 0.00 1,100.42
2018-09-30 2,928.31 0.00 1,071.79
2018-06-30 2,850.62 0.00 966.28
2018-03-31 2,800.96 0.00 931.43
2017-12-31 2,651.25 0.00 1,211.46
2017-09-30 1,762.43 305.50 623.00
2017-06-30 1,716.74 304.83 564.64
2017-03-31 1,683.76 304.11 572.47
2016-12-31 1,654.21 338.34 567.22
2016-09-30 1,618.70 337.52 523.27
2016-06-30 1,585.94 336.72 465.28
2016-03-31 1,565.48 350.92 462.81
2015-12-31 1,543.78 355.11 421.82
2015-09-30 1,509.96 370.00 375.51
2015-06-30 1,506.15 375.00 351.78
2015-03-31 1,514.96 380.00 541.77
2014-12-31 1,513.55 371.80 527.01
2014-09-30 1,492.37 390.00 486.20
2014-06-30 1,471.24 395.00 444.86
2014-03-31 929.79 148.75 223.44
2013-12-31 927.86 153.13 255.95
2013-09-30 899.32 157.50 222.94
2013-06-30 866.60 161.88 190.10
2013-03-31 850.65 166.25 167.39
2012-12-31 826.34 170.63 156.06
2012-09-30 815.85 170.63 130.28
  • CoStar Group has no debt.
  • CoStar Group has no debt compared to 5 years ago when it was 26.8%.
  • CoStar Group has no debt, it does not need to be covered by operating cash flow.
  • CoStar Group has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess CoStar Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. CoStar Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CSGP Dividends

 What is CoStar Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from CoStar Group dividends. Estimated to be 0% next year.
If you bought $2,000 of CoStar Group shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate CoStar Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate CoStar Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:CSGP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:CSGP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 2.00
2020-12-31 0.00 2.00
2019-12-31 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as CoStar Group has not reported any payouts.
  • Unable to verify if CoStar Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of CoStar Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as CoStar Group has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of CoStar Group's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess CoStar Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can CoStar Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. CoStar Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CSGP Management

 What is the CEO of CoStar Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Andy Florance
COMPENSATION $14,640,477
AGE 55
TENURE AS CEO 24.6 years
CEO Bio

Mr. Andrew C. Florance founded CoStar Group, Inc. in 1987. Mr. Florance serves as the Chief Executive Officer, President and Director at CoStar Group, Inc. He is a frequent speaker on commercial real estate at industry events. He co-authored a study about the utilization and usefulness of a massive data set to track apartment rents effectively, titled “What’s Really Happening With Apartment Rents.” The study received a 2016 Manuscript Prize Award from the American Real Estate Society (ARES), an association of real estate thought leaders. He conceived of and co-authored the study resulting in the 2010 launch of the CoStar Commercial Repeat-Sale Indices (CCRSI), which is believed to be the most comprehensive and thorough commercial real estate repeat-sale price index available in the market today. The study was recognized as “Best Manuscript” by the James R. Webb American Real Estate Society (ARES) Foundation. He also co-authored the first comprehensive analysis of leasing and sales activity in energy-efficient office buildings in the United States. The study, which was published in The Journal of Real Estate Portfolio Management, was selected by the ARES as the “Best Paper” published in this prestigious academic real estate journal in 2008. The groundbreaking study was also cited as a critical factor in the Company’s selection as the only commercial real estate-related company to win an ENERGY STAR award for excellence from the U.S. Environmental Protection Agency in 2009. In addition, Mr. Florance is the recipient of numerous other awards recognizing his accomplishments as an entrepreneur and corporate leader, including: Cornell Real Estate Review’s Real Estate Industry Executive of the Year for 2009; Transwestern’s 2007 Public Company Trendsetter of the Year for revolutionizing the way the commercial real estate industry gathers, analyzes and uses information on commercial property and markets; and Ernst & Young’s Entrepreneur of the Year award in 2000 for his pioneering work in real estate information services. Mr. Florance was honored by the Leadership Enterprise for a Diverse America Organization for his entrepreneurial leadership and commitment to education. He served on the Board of Directors of Walker & Dunlop, Inc. from November 2012 to May 2016. Mr. Florance currently serves on several non-profit boards of Directors, including the Board of Directors of ARES, the governing Board of Management Leadership for Tomorrow, a nonprofit working to develop diverse leaders and expand talent pipelines, the St. Albans School Governing Board, and the Board of the Children’s Hospital Foundation. Mr. Florance is a Member of the Cathedral Chapter overseeing the Washington National Cathedral. Mr. Florance received a B.A. in economics from Princeton University.

CEO Compensation
  • Andy's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Andy's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the CoStar Group management team in years:

5.2
Average Tenure
54
Average Age
  • The average tenure for the CoStar Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Michael Klein

TITLE
Chairman of the Board
COMPENSATION
$316K
AGE
77
TENURE
32.6 yrs

Andy Florance

TITLE
Co-Founder
COMPENSATION
$15M
AGE
55
TENURE
24.6 yrs

Scott Wheeler

TITLE
Chief Financial Officer
COMPENSATION
$5M
AGE
55
TENURE
3.6 yrs

Max Linnington

TITLE
Executive Vice President of Sales
COMPENSATION
$3M
AGE
50
TENURE
5.2 yrs

Lisa Ruggles

TITLE
Senior Vice President of Portfolio Research
COMPENSATION
$4M
AGE
52

Frank Simuro

TITLE
Chief Technology Officer
AGE
52
TENURE
4.4 yrs

Rich Simonelli

TITLE
Vice President of Investor Relations & Public Relations

Jonathan Coleman

TITLE
General Counsel & Secretary
AGE
54
TENURE
14.1 yrs

Tim Trainor

TITLE
Communications Director

Martin Johnson

TITLE
Vice President of Corporate Development & Partnerships
TENURE
0.6 yrs
Board of Directors Tenure

Average tenure and age of the CoStar Group board of directors in years:

11.2
Average Tenure
61
Average Age
  • The average tenure for the CoStar Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Michael Klein

TITLE
Chairman of the Board
COMPENSATION
$316K
AGE
77
TENURE
32.6 yrs

Andy Florance

TITLE
Co-Founder
COMPENSATION
$15M
AGE
55
TENURE
32.6 yrs

Chris Nassetta

TITLE
Director
COMPENSATION
$248K
AGE
56
TENURE
17.2 yrs

John Hill

TITLE
Director
COMPENSATION
$255K
AGE
65
TENURE
6.9 yrs

Michael Glosserman

TITLE
Director
COMPENSATION
$246K
AGE
73
TENURE
11.2 yrs

David Steinberg

TITLE
Director
COMPENSATION
$240K
AGE
61
TENURE
8.2 yrs

Laura Kaplan

TITLE
Director
COMPENSATION
$231K
AGE
49
TENURE
3.3 yrs
Who owns this company?
Recent Insider Trading
  • CoStar Group individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
01. Aug 19 Sell Matthew F. Linnington Individual 31. Jul 19 31. Jul 19 -1,618 $617.39 $-998,937
30. Jul 19 Sell Andrew Florance Individual 26. Jul 19 26. Jul 19 -24,210 $628.64 $-15,219,374
30. Jul 19 Sell Scott Wheeler Individual 26. Jul 19 26. Jul 19 -2,233 $629.50 $-1,405,674
25. Jun 19 Sell John Hill Individual 24. Jun 19 24. Jun 19 -315 $553.23 $-174,267
04. Mar 19 Sell Lisa Ruggles Individual 01. Mar 19 01. Mar 19 -1,538 $466.62 $-717,662
04. Mar 19 Sell Matthew F. Linnington Individual 01. Mar 19 01. Mar 19 -4,185 $477.31 $-1,997,542
04. Mar 19 Sell Scott Wheeler Individual 01. Mar 19 01. Mar 19 -5,396 $476.11 $-2,569,090
28. Dec 18 Sell John Hill Individual 26. Dec 18 26. Dec 18 -1,042 $330.88 $-344,777
30. Oct 18 Sell Christopher Nassetta Individual 29. Oct 18 29. Oct 18 -571 $349.67 $-199,662
X
Management checks
We assess CoStar Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. CoStar Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CSGP News

Simply Wall St News

Introducing CoStar Group (NASDAQ:CSGP), The Stock That Soared 326% In The Last Five Years

There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Over half a decade, CoStar Group managed to grow its earnings per share at 40% a year. … NasdaqGS:CSGP Past and Future Earnings, August 14th 2019 We know that CoStar Group has improved its bottom line over the last three years, but what does the future have in store?

Simply Wall St -

This Insider Has Just Sold Shares In CoStar Group, Inc. (NASDAQ:CSGP)

Check out our latest analysis for CoStar Group CoStar Group Insider Transactions Over The Last Year The Co-Founder, Andrew Florance, made the biggest insider sale in the last 12 months. … CoStar Group insiders didn't buy any shares over the last year. … CoStar Group insiders own about US$377m worth of shares (which is 1.7% of the company).

Simply Wall St -

What Are Analysts Saying About The Future Of CoStar Group, Inc.'s (NASDAQ:CSGP)?

View our latest analysis for CoStar Group What can we expect from CoStar Group in the longer term? … To understand the overall trajectory of CSGP's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope. … NasdaqGS:CSGP Past and Future Earnings, August 2nd 2019 By 2022, CSGP's earnings should reach US$412m, from current levels of US$238m, resulting in an annual growth rate of 18%.

Simply Wall St -

CoStar Group, Inc. (NASDAQ:CSGP) Has Attractive Fundamentals

By this I mean, I look at stocks holistically, from their financial health to their future outlook. … CSGP has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future. … NasdaqGS:CSGP Income Statement, July 24th 2019 Next Steps: For CoStar Group, I've compiled three essential aspects you should further examine: Future Outlook: What are well-informed industry analysts predicting for CSGP’s future growth?

Simply Wall St -

Are CoStar Group, Inc. (NASDAQ:CSGP) Investors Paying Above The Intrinsic Value?

Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $432.7m $578.4m $720.4m $837.6m $932.8m $1.0b $1.1b $1.1b $1.2b $1.3b Growth Rate Estimate Source Analyst x6 Analyst x2 Analyst x1 Analyst x1 Est @ 11.36% Est @ 8.77% Est @ 6.96% Est @ 5.69% Est @ 4.8% Est @ 4.18% Present Value ($, Millions) Discounted @ 8.12% $400.2 $494.8 $570.0 $613.0 $631.4 $635.2 $628.4 $614.3 $595.5 $573.8 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $5.8b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … NasdaqGS:CSGP Intrinsic value, July 15th 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

What Does CoStar Group, Inc.'s (NASDAQ:CSGP) P/E Ratio Tell You?

The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for CoStar Group: P/E of 75.35 = $565.5 ÷ $7.51 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good? … How Does CoStar Group's P/E Ratio Compare To Its Peers? … The Bottom Line On CoStar Group's P/E Ratio With a P/E ratio of 75.3, CoStar Group is expected to grow earnings very strongly in the years to come.

Simply Wall St -

How Should Investors React To CoStar Group, Inc.'s (NASDAQ:CSGP) CEO Pay?

First, this article will compare CEO compensation with compensation at other large companies. … View our latest analysis for CoStar Group How Does Andy Florance's Compensation Compare With Similar Sized Companies? … We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m.

Simply Wall St -

Is There Now An Opportunity In CoStar Group, Inc. (NASDAQ:CSGP)?

Given that CoStar Group’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … If you are no longer interested in CoStar Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

Simply Wall St -

Can CoStar Group, Inc. (NASDAQ:CSGP) Save Your Portfolio?

Below I take a look at three key characteristics of what makes a strong defensive stock investment: its size, financial health and track record. … This consistent market outperformance illustrates a robust track record of delivering strong returns over a number of years, increasing my conviction in CoStar Group as an investment over the long run. … Next Steps: CoStar Group makes for a robust long-term investment based on its scale, financial health and track record.

Simply Wall St -

Is CoStar Group, Inc.'s (NASDAQ:CSGP) Stock Available For A Good Price After Accounting For Growth?

CSGP is trading at a very high price-to-earnings (PE) ratio of 66.38x, meaning CoStar Group is overvalued based on current earnings compared to the Professional Services industry average of 21.98x , and overvalued compared to the US market average ratio of 18.07x. … However, since CoStar Group is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio. … So, when we include the growth factor in our analysis, CoStar Group appears overvalued , based on its fundamentals.

Simply Wall St -

CSGP Company Info

Description

CoStar Group, Inc. provides information, analytics, and online marketplaces to the commercial real estate industry in the United States and the United Kingdom. The company offers CoStar Property Professional service that offers inventory of office, industrial, retail, and multifamily properties and land. It also provides CoStar COMPS Professional that covers comparable commercial real estate sales information; CoStar Tenant, an online business-to-business prospecting and analytical tool; CoStar Lease Comps, a solution to capture, manage, and maintain lease data; CoStar Lease Analysis, a workflow tool; CoStar Advertising to market a space for lease or a property for sale; CoStar Private Sale Network, which provides custom-designed and branded Websites; and CoStar and CoStar Go CoStar mobile apps. In addition, the company offers CoStar Real Estate Manager, a real estate and asset management, and lease accounting software; CoStar Risk Analytics, a commercial real estate risk management tool; CoStar Brokerage Applications; CoStar Investment Analysis Request, a business intelligence software; and CoStar Investment Analysis Portfolio Maximizer, a real estate portfolio management software. Further, it provides apartment marketing sites, such as Apartments.com, ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, Apartamentos.com, WestsideRentals.com, and Cozy.co; LoopNet Premium Lister and LoopNet Power Listings for commercial real estate professionals; LoopLink, an online real estate marketing and database services suite; Listing Manager, an online listing tool; Realla, a commercial property listings and data management platform; LandsofAmerica, LandAndFarm, and LandWatch online marketplaces for rural land for sale; and BizBuySell and BizQuest online marketplaces for operating businesses for sale. The company has a strategic relationship with Buxton Company. The company was founded in 1987 and is headquartered in Washington, the District of Columbia.

Details
Name: CoStar Group, Inc.
CSGP
Exchange: NasdaqGS
Founded: 1987
$22,618,134,527
36,548,654
Website: http://www.costargroup.com
Address: CoStar Group, Inc.
1331 L Street, NW,
Washington,
District Of Columbia, 20005,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CSGP Common Stock Nasdaq Global Select US USD 01. Jul 1998
DB RLG Common Stock Deutsche Boerse AG DE EUR 01. Jul 1998
BMV CSGP * Common Stock Bolsa Mexicana de Valores MX MXN 01. Jul 1998
Number of employees
Current staff
Staff numbers
3,705
CoStar Group employees.
Industry
Research and Consulting Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/16 23:38
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/07/26
Last earnings filing: 2019/07/24
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.