CoStar Group (CSGP) AI Stock Analysis

• Market Cap: $37.86B
• Dividend Yield: N/A
• Average Volume (3M): 3.06M
• Price to Earnings (P/E): 350.6
• Beta (1Y): 0.96
• Revenue Growth: 12.18%
• EPS Growth: -51.21%
• Country: US
• Employees: 6,593
• Sector: Real Estate
• Sector Strength: 52
• Industry: Real Estate - Services
• EPS (TTM): 0.17
• Shares Outstanding: 423,650,360
• 10 Day Avg. Volume: 2,790,971
• 30 Day Avg. Volume: 3,057,169
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 10.70
• Enterprise Value/Gross Profit: 13.64
• Enterprise Value/Ebitda: 141.49
• 1Y Price Target: $97.58
• Price Target Upside: 9.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 73 Outperform
• Price Target: $100.00 ▲(11.79% Upside)

CoStar Group's overall stock score reflects strong financial performance and positive earnings call highlights, including robust revenue growth and strategic international expansion. However, high valuation metrics and operational challenges, such as negative EBIT and free cash flow, weigh on the score.

Positive Factors

Bookings and Revenue Growth

Recent strength in shares has been driven by strong bookings in Apartments and Residential segments.

Brand Awareness

Management noted improving brand awareness for Homes.com with the intention to grow unaided awareness to the 40% range.

Salesforce Expansion

CSGP intends to grow the salesforce by 20% in 2025, including significant growth in Homes.com sellers.

Negative Factors

Expense Management

Management provided a lower margin outlook due to the timing of expenses related to its sales force expansion efforts.

Spending Levels

There could be some downside to 2026 estimates if spending levels remain elevated.

CoStar Group Business Overview & Revenue Model

Company Description

CoStar Group, Inc. is a leading provider of commercial real estate information, analytics, and online marketplaces. Founded in 1987, the company operates primarily in the commercial real estate sector, offering a range of products and services that include property data, market analytics, and research for various stakeholders such as real estate professionals, investors, and corporate users. CoStar's portfolio includes well-known brands such as CoStar, LoopNet, and Apartments.com, catering to different segments of the real estate market.

How the Company Makes Money

CoStar Group generates revenue primarily through subscription-based services, where clients pay for access to its extensive databases and analytical tools. Key revenue streams include fees from commercial real estate professionals who subscribe to CoStar's platforms for property data and analytics, as well as advertising revenues from listings on its online marketplaces like LoopNet and Apartments.com. Additionally, CoStar offers specialized research services and custom analytics, contributing to its earnings. The company also benefits from partnerships with various real estate firms and organizations that rely on its data and insights, enhancing its market presence and leading to recurring revenue opportunities.

CoStar Group Financial Statement Overview

Summary

CoStar Group's financial performance is marked by solid revenue growth and a strong balance sheet with low leverage. However, challenges in operational profitability and cash flow volatility present potential risks.

Income Statement

CoStar Group's TTM revenue grew by 2.77% from the previous year, indicating steady growth in the real estate services industry. Despite this, the company experienced a slight net income decline, impacting the net profit margin, which decreased to 4.17%. The EBIT margin turned negative, signaling operational challenges. However, the EBITDA margin remains positive at 4.21%, suggesting some resilience in operational cash generation.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.02, highlighting minimal leverage and financial stability. The equity ratio stands at a healthy 82.02%, reflecting strong asset backing by equity. Return on equity is modest at 1.37%, indicating room for improvement in profitability.

Cash Flow

CoStar Group's free cash flow turned positive in the TTM, showing a recovery from previous negative figures. However, the free cash flow growth rate is volatile. The operating cash flow to net income ratio is 2.58, suggesting efficient cash conversion, yet the free cash flow to net income ratio is only 0.38, indicating limited free cash generation relative to net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.74B	2.46B	2.18B	1.94B	1.66B
Gross Profit	2.18B	1.96B	1.77B	1.59B	1.35B
EBITDA	151.60M	389.80M	662.83M	571.90M	406.15M
Net Income	138.70M	374.70M	369.50M	292.60M	227.13M
Balance Sheet
Total Assets	9.26B	8.92B	8.40B	7.26B	6.92B
Cash, Cash Equivalents and Short-Term Investments	4.68B	5.22B	4.97B	3.83B	3.76B
Total Debt	1.13B	1.11B	1.11B	1.12B	1.14B
Total Liabilities	1.70B	1.58B	1.53B	1.55B	1.54B
Stockholders Equity	7.55B	7.34B	6.87B	5.71B	5.38B
Cash Flow
Free Cash Flow	-245.30M	464.20M	420.05M	404.51M	437.76M
Operating Cash Flow	392.60M	489.50M	478.62M	469.73M	486.11M
Investing Cash Flow	-912.90M	-238.60M	-69.06M	-381.34M	-464.16M
Financing Cash Flow	-13.70M	-3.70M	733.98M	-15.68M	2.66B

CoStar Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 89.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 89.45 is below the 20-day moving average (MA) of 91.49, above the 50-day MA of 87.53, and above the 200-day MA of 79.25, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 49.16 is Neutral, neither overbought nor oversold. The STOCH value of 61.80 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	78 Outperform	$14.47B	26.26	8.40%	―	13.47%	47.52%
CWK	75 Outperform	$3.67B	18.00	11.62%	―	4.63%	887.64%
CBRE	74 Outperform	$49.09B	46.22	13.13%	―	14.96%	19.11%
CSGP	73 Outperform	$37.86B	350.61	1.30%	―	12.18%	-51.21%
BEKE	70 Outperform	$23.21B	35.59	5.60%	2.02%	32.76%	-2.01%
NMRK	66 Neutral	$3.24B	43.12	6.00%	0.66%	16.29%	69.89%
Sector *	63 Neutral	$7.00B	13.45	-0.52%	6.98%	3.61%	-22.78%

CoStar Group Corporate Events

CoStar Group Completes Acquisition of Domain Holdings

On August 27, 2025, CoStar Group completed its acquisition of Domain Holdings Australia Limited, acquiring the remaining 83% of Domain’s shares. This strategic move is expected to enhance competition and value in Australia’s property market by combining CoStar’s global scale and technology with Domain’s local expertise. The acquisition aims to create a more balanced marketplace for agents, vendors, and homebuyers, challenging existing models that prioritize profit over value. CoStar plans to leverage its experience in the U.S. market to offer better tools and lower costs, thereby setting new standards in the Australian real estate industry.

CoStar Group Reports Strong Q2 2025 Revenue Growth

CoStar Group reported a 15% increase in revenue for Q2 2025, reaching $781 million, with net new bookings hitting an all-time high of $93 million. The company’s Homes.com platform saw a 56% increase in members, and its digital marketing package, Boost, was launched successfully. The company expects continued growth with projected revenue of $3.135 billion to $3.155 billion for the full year 2025.

CoStar Group Approves 2025 Stock Incentive Plan

On June 26, 2025, CoStar Group, Inc. held its Annual Meeting of Stockholders where the 2025 Stock Incentive Plan was approved, replacing the 2016 Plan. This plan allows grants of stock options and other incentives to employees and directors, potentially impacting the company’s talent retention and motivation strategies. Additionally, the meeting saw the election of board members and the ratification of Ernst & Young LLP as the independent accounting firm for 2025, while a proposal for transparency in political spending was not approved.