CoStar Group (CSGP) AI Stock Analysis

• Market Cap: $26.86B
• Dividend Yield: N/A
• Average Volume (3M): 4.80M
• Price to Earnings (P/E): 1271.2
• Beta (1Y): 0.79
• Revenue Growth: 14.61%
• EPS Growth: -87.93%
• Country: US
• Employees: 6,593
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.23
• Shares Outstanding: 423,822,780
• 10 Day Avg. Volume: 7,145,458
• 30 Day Avg. Volume: 4,801,937
• PEG Ratio: -3.33
• Price to Book (P/B): 3.85
• Price to Sales (P/S): 10.63
• P/FCF Ratio: -118.58
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 11.02
• Enterprise Value/Gross Profit: 13.90
• Enterprise Value/Ebitda: 222.29
• 1Y Price Target: $75.00
• Price Target Upside: 18.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 1.34
• Revenue Forecast (FY): $3.82B

• Rating: 59 Neutral
• Price Target: $64.00 ▲(0.98% Upside)

The score is held back most by weak technicals (price below key moving averages and negative MACD) and extremely high valuation (P/E 1199.61). These are partially offset by a solid balance sheet (low leverage) and a strong earnings-call picture showing accelerating revenue/EBITDA growth with upbeat full-year guidance, plus a positive buyback-driven corporate event.

Positive Factors

Recurring subscription + marketplace model

A subscription-heavy mix plus listing/advertising marketplaces creates durable, recurring revenue and high retention from long-term contracts. This reduces revenue volatility, supports predictable cash flows, and amplifies lifetime customer value, underpinning steady growth over multiple quarters.

Very high gross margins

Digital information products and marketplaces command low incremental costs, enabling sustained high gross margins. This structural margin advantage supports operating leverage as revenue scales, allowing incremental revenue to drop to the operating line and fund product investment and go-to-market expansion.

Low leverage and disciplined buybacks

A very low leverage profile preserves financial flexibility and reduces solvency risk, enabling the company to fund growth internally and return capital. The $1.5B buyback program and revised comp indicate disciplined capital allocation and alignment with shareholders that can enhance long-term returns.

Negative Factors

Sharp profitability deterioration

Despite revenue growth, a collapse in net margin signals structural pressure on bottom-line economics—driven by a negative EBIT margin and lower ROE—reducing sustainable earnings power. If not reversed, this impairs reinvestment capacity and the company’s ability to convert growth into durable shareholder value.

Material free cash flow deterioration

A severe drop in free cash flow growth constrains internal financing for product development and M&A, and raises reliance on external funding or equity actions. Persistent FCF weakness can limit strategic optionality and reduce the company's ability to sustain investments that drive long-term competitive advantage.

Heightened competitive/legal environment

Entry or intensified activity by large tech platforms and ongoing industry legal issues create durable competitive and regulatory risks. These can force higher sales/tech spend, compress pricing power, and introduce litigation/regulatory costs that structurally pressure long-term margins and growth durability.

CoStar Group Business Overview & Revenue Model

Company Description

CoStar Group, Inc. provides information, analytics, and online marketplace services to the commercial real estate, hospitality, residential, and related professionals industries in the United States, Canada, Europe, the Asia Pacific, and Latin America. It offers CoStar Property that provides inventory of office, industrial, retail, multifamily, hospitality, and student housing properties and land; CoStar COMPS, a robust database of comparable commercial real estate sales transactions; CoStar Market Analytics to view and report on aggregated market and submarket trends; and CoStar Tenant, an online business-to-business prospecting and analytical tool that provides tenant information. The company also provides Lease Comps and Analysis, a tool to capture, manage, and maintain lease data; CoStar Lease Analysis; Public Record, a searchable database of commercially-zoned parcels; CoStar Real Estate Manager, a real estate lease administration, portfolio management, and lease accounting compliance software solution; and CoStar Risk Analytics and CoStar Investment. In addition, it offers apartment marketing sites, such as ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, WestsideRentals.com, AFTER55.com, CorporateHousing.com, ForRentUniversity.com, Apartamentos.com, and Off Campus Partners; LoopNet Premium Lister; LoopNet Diamond, Platinum, and Gold Ads; LandsofAmerica.com, LandAndFarm.com, and LandWatch.com for rural land for-sale; BizBuySell.com, BizQuest.com, and FindaFranchise.com for operating businesses and franchises for-sale; Ten-X, an online auction platform for commercial real estate; and HomeSnap, an online and mobile software platform, as well as Homes.com, a homes for sale listings site. CoStar Group, Inc. was founded in 1987 and is headquartered in Washington, the District of Columbia.

How the Company Makes Money

CoStar Group generates revenue through several key streams, primarily from subscription-based services that provide access to its extensive databases and analytical tools. Subscribers pay recurring fees for access to the CoStar Suite, which offers detailed property information and market analytics. Additionally, CoStar earns revenue from transaction-based services, including listing fees and advertising on platforms like LoopNet and Apartments.com, where users can list properties for sale or lease. The company also benefits from long-term contracts with large clients, which provide a stable revenue base. Strategic partnerships with various real estate firms and industry organizations further enhance its market reach and revenue potential, allowing CoStar to maintain a strong competitive advantage in the commercial real estate sector.

CoStar Group Financial Statement Overview

Summary

CoStar Group shows strong revenue growth and a robust balance sheet with low leverage. However, profitability has declined, evidenced by a reduced net profit margin and negative EBIT margin. Cash flow challenges are evident with a significant drop in free cash flow growth.

Income Statement

CoStar Group shows a steady revenue growth trend, with a TTM revenue growth rate of 4.84%. However, the net profit margin has significantly decreased to 0.66% in the TTM period from 15.26% in 2023, indicating a decline in profitability. The negative EBIT margin in the TTM period suggests operational challenges. Despite these issues, the company maintains a strong gross profit margin of 79.25%, reflecting efficient cost management.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.021, indicating low leverage and financial stability. The return on equity has decreased to 0.24% in the TTM period, reflecting reduced profitability. However, the equity ratio remains strong, suggesting a solid capital structure.

Cash Flow

CoStar Group's cash flow statement reveals a significant decline in free cash flow growth, with a negative rate of -613.95% in the TTM period. The operating cash flow to net income ratio is 0.47, indicating moderate cash generation relative to net income. The free cash flow to net income ratio of 0.78 suggests that the company is generating adequate free cash flow relative to its net income, despite recent challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.06B	2.74B	2.46B	2.18B	1.94B	1.66B
Gross Profit	2.42B	2.18B	1.96B	1.77B	1.59B	1.35B
EBITDA	151.50M	151.60M	389.80M	588.90M	571.86M	406.15M
Net Income	20.30M	138.70M	374.70M	369.50M	292.60M	227.13M
Balance Sheet
Total Assets	10.82B	9.26B	8.92B	8.40B	7.26B	6.92B
Cash, Cash Equivalents and Short-Term Investments	2.03B	4.68B	5.22B	4.97B	3.83B	3.69B
Total Debt	1.13B	1.04B	1.11B	1.11B	1.11B	1.12B
Total Liabilities	2.20B	1.70B	1.58B	1.53B	1.55B	1.54B
Stockholders Equity	8.62B	7.55B	7.34B	6.87B	5.71B	5.38B
Cash Flow
Free Cash Flow	283.70M	-245.30M	464.20M	420.05M	404.51M	437.76M
Operating Cash Flow	362.50M	392.60M	489.50M	478.62M	469.73M	486.11M
Investing Cash Flow	-3.10B	-912.90M	-238.60M	-69.10M	-381.34M	-464.16M
Financing Cash Flow	-162.00M	-13.70M	-3.70M	733.98M	-15.68M	2.66B

CoStar Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 63.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSGP, the sentiment is Neutral. The current price of 63.38 is below the 20-day moving average (MA) of 64.72, below the 50-day MA of 66.37, and below the 200-day MA of 78.17, indicating a neutral trend. The MACD of -1.26 indicates Negative momentum. The RSI at 51.07 is Neutral, neither overbought nor oversold. The STOCH value of 60.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CSGP.

CoStar Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JLL	79 Outperform	$16.71B	27.26	9.14%	―	12.51%	32.34%
CBRE	70 Outperform	$50.84B	42.38	14.26%	―	14.61%	30.19%
CWK	69 Neutral	$3.95B	18.03	12.21%	―	6.77%	150.72%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
BEKE	62 Neutral	$19.98B	41.99	4.91%	2.26%	25.33%	-15.12%
CSGP	59 Neutral	$26.86B	1,271.21	0.25%	―	14.61%	-87.93%
NMRK	59 Neutral	$3.17B	30.30	8.08%	0.68%	22.22%	94.52%

CoStar Group Corporate Events

CoStar Group Updates Executive Pay, Launches Share Buyback

On January 7, 2026, CoStar Realty Information, Inc., a subsidiary of CoStar Group, amended the employment agreement of founder and CEO Andrew C. Florance, effective January 1, 2026, to remove a long-standing tax gross-up provision related to Sections 280G and 4999 of the Internal Revenue Code, and simultaneously adopted an Executive Severance Plan that standardizes severance benefits, including salary-based payouts, bonus entitlements, subsidized COBRA coverage, and equity vesting acceleration for vice president-level executives and above in the event of involuntary termination, subject to release of claims. On the same date, the company also issued a press release outlining its full-year 2026 financial outlook and medium-term and long-term targets for its Homes.com investment, while unveiling a new $1.5 billion share repurchase program and revising its executive compensation framework in response to shareholder feedback, signaling a broader effort to align leadership incentives with investor interests and enhance capital return to shareholders.

The most recent analyst rating on (CSGP) stock is a Hold with a $70.00 price target. To see the full list of analyst forecasts on CoStar Group stock, see the CSGP Stock Forecast page.

CoStar Group Enhances Transparency with Website Updates

CoStar Group plans to use its corporate website as a primary channel for distributing important company information, such as investor presentations. This move highlights the company’s commitment to transparency and accessibility, potentially enhancing its communication with stakeholders and aligning with modern digital information dissemination practices.

The most recent analyst rating on (CSGP) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on CoStar Group stock, see the CSGP Stock Forecast page.