CoStar Group, Inc.

NasdaqGS:CSGP Stock Report

Market Cap: US$29.6b

CoStar Group Valuation

Is CSGP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CSGP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CSGP ($76.27) is trading below our estimate of fair value ($98.98)

Significantly Below Fair Value: CSGP is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CSGP?

Key metric: As CSGP is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for CSGP. This is calculated by dividing CSGP's market cap by their current revenue.
What is CSGP's PS Ratio?
PS Ratio11.7x
SalesUS$2.67b
Market CapUS$29.55b

Price to Sales Ratio vs Peers

How does CSGP's PS Ratio compare to its peers?

The above table shows the PS ratio for CSGP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3x
CBRE CBRE Group
1.2x8.7%US$39.8b
BEKE KE Holdings
2.3x10.8%US$24.8b
ZG Zillow Group
8.1x11.9%US$17.4b
JLL Jones Lang LaSalle
0.5x6.4%US$12.3b
CSGP CoStar Group
11.7x13.4%US$29.6b

Price-To-Sales vs Peers: CSGP is expensive based on its Price-To-Sales Ratio (11.7x) compared to the peer average (3x).

Price to Sales Ratio vs Industry

How does CSGP's PS Ratio compare vs other companies in the US Real Estate Industry?

33 CompaniesPrice / SalesEstimated GrowthMarket Cap
JLL Jones Lang LaSalle
0.5x6.4%US$12.26b
COMP Compass
0.6x11.5%US$3.21b
CWK Cushman & Wakefield
0.3x5.6%US$3.19b
EXPI eXp World Holdings
0.4x5.7%US$1.97b
CSGP 11.7xIndustry Avg. 2.4xNo. of Companies33PS03.67.210.814.418+
33 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: CSGP is expensive based on its Price-To-Sales Ratio (11.7x) compared to the US Real Estate industry average (2.4x).

Price to Sales Ratio vs Fair Ratio

What is CSGP's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CSGP PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio11.7x
Fair PS Ratio6.8x

Price-To-Sales vs Fair Ratio: CSGP is expensive based on its Price-To-Sales Ratio (11.7x) compared to the estimated Fair Price-To-Sales Ratio (6.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CSGP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$76.27
US$90.08
+18.1%
10.0%US$103.00US$75.00n/a13
Nov ’25US$72.50
US$90.08
+24.2%
10.0%US$103.00US$75.00n/a13
Oct ’25US$74.65
US$94.54
+26.6%
10.9%US$108.00US$76.00n/a13
Sep ’25US$77.30
US$94.14
+21.8%
10.7%US$108.00US$76.00n/a14
Aug ’25US$77.14
US$93.71
+21.5%
10.2%US$107.00US$76.00n/a14
Jul ’25US$73.88
US$102.50
+38.7%
8.6%US$111.00US$80.00n/a14
Jun ’25US$78.17
US$102.50
+31.1%
8.6%US$111.00US$80.00n/a14
May ’25US$90.36
US$102.50
+13.4%
8.6%US$111.00US$80.00n/a14
Apr ’25US$94.52
US$98.38
+4.1%
11.2%US$111.00US$79.00n/a13
Mar ’25US$88.27
US$91.79
+4.0%
8.8%US$105.00US$79.00n/a14
Feb ’25US$84.60
US$93.50
+10.5%
9.7%US$106.00US$76.00n/a14
Jan ’25US$87.39
US$91.50
+4.7%
10.5%US$105.00US$70.00n/a14
Dec ’24US$85.28
US$89.14
+4.5%
11.5%US$104.00US$70.00n/a14
Nov ’24US$73.67
US$87.79
+19.2%
11.4%US$104.00US$70.00US$72.5014
Oct ’24US$76.89
US$96.93
+26.1%
10.3%US$114.00US$76.00US$74.6515
Sep ’24US$82.57
US$95.93
+16.2%
10.8%US$114.00US$76.00US$77.3015
Aug ’24US$83.12
US$95.93
+15.4%
10.8%US$114.00US$76.00US$77.1415
Jul ’24US$89.00
US$88.60
-0.4%
13.3%US$105.00US$65.00US$73.8815
Jun ’24US$79.73
US$85.57
+7.3%
11.6%US$102.00US$65.00US$78.1714
May ’24US$76.11
US$84.43
+10.9%
10.4%US$100.00US$65.00US$90.3614
Apr ’24US$68.85
US$83.64
+21.5%
10.6%US$100.00US$65.00US$94.5214
Mar ’24US$70.03
US$83.50
+19.2%
10.8%US$100.00US$65.00US$88.2714
Feb ’24US$79.01
US$90.38
+14.4%
9.9%US$102.00US$73.00US$84.6013
Jan ’24US$77.28
US$90.29
+16.8%
9.6%US$102.00US$73.00US$87.3914
Dec ’23US$82.95
US$89.31
+7.7%
9.3%US$102.00US$73.00US$85.2813
Nov ’23US$81.19
US$88.42
+8.9%
9.1%US$102.00US$73.00US$73.6712

Analyst Forecast: Target price is less than 20% higher than the current share price.

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