Evaluating CoStar Group (CSGP): How Recent Platform Growth and Analyst Support Shape Its Valuation Outlook

CoStar Group (CSGP) is catching fresh interest from investors after a new surge in online traffic on its Homes.com platform, which just hit a one-year high. Apartments.com is now outperforming Zillow Rentals.

See our latest analysis for CoStar Group.

Beyond strong web traffic, CoStar Group’s competitive positioning has sharpened with Apartments.com overtaking a major rival and continued legal actions grabbing headlines. The stock’s recent momentum is promising, with a 1-year total shareholder return of 13.5%, which signals investors are warming to the company’s growth narrative after a period of volatility.

If you’re tracking standout moves in real estate and tech, it’s a smart moment to broaden your search and discover fast growing stocks with high insider ownership

With analyst targets still above current prices and organic growth gaining traction, investors are left to consider whether CoStar’s recent momentum signals room for further upside or if the stock’s future potential is already reflected in today’s valuation.

Most Popular Narrative: 13.6% Undervalued

With the fair value set at $97.12, CoStar Group’s last close of $83.90 leaves a notable gap, attracting attention to the bullish scenario if the narrative plays out. This spread highlights investor excitement, especially if growth and margin expansion are delivered as projected.

Robust user growth, tech innovation, and regulatory trends are strengthening CoStar's role as an industry standard, supporting sustainable pricing and expanding profit margins. Major investments in residential real estate, international expansion, and advanced analytics are unlocking new revenue streams and accelerating long-term growth opportunities.

Read the complete narrative.

Want to uncover the key behind this high fair value? The most surprising driver is a sharp jump in future profits and a bold margin leap. See what assumptions are baked into the story and decide for yourself, as there is more beneath the headline growth rate than meets the eye.

Result: Fair Value of $97.12 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rapid expansion and aggressive investments could raise operating expenses and weigh on margins if Homes.com adoption or profit improvements fall short of expectations.

Find out about the key risks to this CoStar Group narrative.

Another View: What Do Multiples Say?

Taking a broader look, CoStar Group is trading at a price-to-sales ratio of 12.2x. This is far higher than industry peers at 2.7x and its fair ratio of 5.4x. This premium points to bigger valuation risk, especially if future growth stumbles or expectations reset lower. Is optimism outpacing reality?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own CoStar Group Narrative

If you see the story playing out differently or want your analysis to take center stage, dive into the data and craft your own view, all in just minutes. Do it your way

A great starting point for your CoStar Group research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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