CoStar Group, Inc.

Valuation Analysis

About the Company

CoStar Group, Inc. provides information, analytics, and online marketplace services to real estate and related business communities in the United States, Australia, Canada, Europe, the Asia Pacific, and Latin America. It offers CoStar Property that provides inventory of office, industrial, retail, multifamily, hospitality, and student housing, and land properties; CoStar Leasing, a data on lease transactions and tools to manage user-entered lease data; CoStar Sales, a database of commercial real estate sales transactions; CoStar Owners provides detailed portfolio information; CoStar Markets to view and report on market and submarket trends; and CoStar Tenant that provides tenant information. The company also provides hospitality benchmarking that allows hotels to measure performance agains

CoStar Group, Inc. Stock at a Glance

CoStar Group, Inc. (CSGP) is currently trading at $32.84 with a market capitalization of $13.4B. The trailing P/E ratio stands at 469.14x, with a forward P/E of 18.26x. The 52-week range spans from $31.36 to $97.43; the current price is 66.3% below the yearly high. Year-over-year revenue growth stands at +22.5%. The net profit margin stands at 0.73%.

💰 Dividend

CoStar Group, Inc. currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

20 analysts rate CoStar Group, Inc. (CSGP) on consensus: Buy. The average price target is $48.85, implying +48.75% from the current price. Analyst price targets range from $33.00 to $70.00.

CoStar Group, Inc.: The Investment Case in Detail

CoStar Group, Inc. (CSGP) operates in the Real Estate — specifically Real Estate Services — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 22.5% pace year-over-year, suggesting the business model continues to find new customers and pricing power. With a gross margin near 78.63%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Wall Street consensus sits at Buy with an average price target implying roughly 48.75% upside from current levels — analyst sentiment is firmly constructive.

The Bear Case

With a net margin of just 0.73%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

With a PEG ratio of 0.12, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 49.22x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

What to Watch Next

• The forward P/E of 18.26x is meaningfully below the trailing 469.14x — analysts expect earnings to step up; the next earnings release is the test.
• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.
• The analyst consensus price target implies 48.75% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to relatively defensive market behavior.

Trading Data

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