CBRE Group (CBRE): Examining Current Valuation Following Recent Share Price Gains

CBRE Group (CBRE) has been drawing attention lately as investors reassess the company’s performance and outlook following recent trading activity. With its shares relatively steady over the past month, there is renewed curiosity about the factors behind CBRE’s current valuation.

See our latest analysis for CBRE Group.

Momentum has been quietly building for CBRE Group, with its share price notching a solid 6.2% gain over the past month and a robust year-to-date price return of nearly 25%. This recent performance adds to a longer track record of shareholder returns. CBRE’s total return stands at about 16% over the past year and has more than doubled over the last three years, suggesting that investors remain optimistic about its growth potential amid evolving market dynamics.

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With shares hovering near recent highs, the question now becomes whether CBRE Group offers attractive value at today’s prices or if the market has already accounted for its expected growth. Could there still be a buying opportunity here?

Most Popular Narrative: 7.5% Undervalued

CBRE Group closed at $162.21, while the most popular valuation narrative sets fair value at $175.45. This notable gap has investors watching closely for what might justify this premium. These expectations stem from forecasts that connect growth, margin expansion, and capital management to stronger shareholder value in the coming years.

CBRE's strategic realignment of its Project Management and Building Operations & Experience segments has resulted in strong financial performance and is expected to drive future growth by enhancing operational synergies, including shared client access and opportunities for mergers and acquisitions. This is likely to positively impact both revenue and net margins.

Read the complete narrative.

Want to know what future targets drive this bullish stance? Discover the key calculations behind the narrative—shifting profits, rising margins, and a bold path to growth. One crucial prediction shapes everything. Ready to see which financial lever makes all the difference?

Result: Fair Value of $175.45 (UNDERVALUED)

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

However, key risks remain. Tariff-related uncertainty and slowdowns in leasing activity could challenge the optimistic forecast and test CBRE’s growth momentum.

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

Another View: Market Ratios Tell a Different Story

While the most popular valuation method suggests CBRE Group is undervalued, a look at the actual price-to-earnings ratio paints a much less attractive picture. CBRE is trading at 38.7x earnings, well above the US real estate industry average of 30.3x and even higher than the peer average of 28.3x. The market could eventually move toward the fair ratio of 27x, indicating real valuation risk at current prices. Is the enthusiasm already priced in, or is there something the multiples are missing?

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

Build Your Own CBRE Group Narrative

If you want a different perspective or would rather delve into the numbers firsthand, crafting your own CBRE Group story takes under three minutes. Do it your way

A great starting point for your CBRE Group research is our analysis highlighting 2 key rewards and 1 important warning sign 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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