CoStar Group (CSGP) AI Stock Analysis

• Market Cap: $18.31B
• Dividend Yield: N/A
• Average Volume (3M): 6.80M
• Price to Earnings (P/E): 4003.7
• Beta (1Y): 0.83
• 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): 0.31
• Shares Outstanding: 419,793,300
• 10 Day Avg. Volume: 5,301,365
• 30 Day Avg. Volume: 6,797,478
• PEG Ratio: -42.12
• Price to Book (P/B): 3.36
• Price to Sales (P/S): 8.63
• P/FCF Ratio: 683.55
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 5.59
• Enterprise Value/Gross Profit: 7.21
• Enterprise Value/Ebitda: 89.62
• 1Y Price Target: $63.53
• Price Target Upside: 43.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 1.3
• Revenue Forecast (FY): $3.81B

• Rating: 56 Neutral
• Price Target: $45.00 ▲(1.69% Upside)
• Action: Reiterated Date: 03/16/26
• Date: Action: Reiterated 03/16/26

The score is held back primarily by the 2025 profitability reset and weaker free cash flow, alongside bearish technical trend signals. Offsetting these, the earnings call points to strong demand (bookings) and solid growth with positive guidance, while the balance sheet remains conservative; valuation remains the largest standalone negative due to the extremely high P/E.

Positive Factors

Recurring subscription model & network effects

A subscription-heavy business with marketplace monetization creates durable recurring revenue and network effects. Large proprietary datasets and multi-user, multi-year contracts support predictable revenue, high retention and pricing power versus one-off transactional competitors.

Consistent high revenue growth and marketplace scale

Sustained double-digit top-line growth across many quarters signals strong product-market fit and scaling advantages. Growing marketplace volume enlarges addressable audiences, supports ad monetization, and provides durable tailwinds for recurring bookings and cross-sell over the medium term.

Conservative balance sheet and financial flexibility

Low leverage and rising equity provide optionality for M&A, product investment, or buybacks without stressing liquidity. A conservative capital structure reduces refinancing risk and preserves flexibility to support the business through cyclical real estate markets.

Negative Factors

Sharp profitability deterioration in 2025

A material step-down in operating and net margins reduces the company’s ability to compound returns. If higher operating costs persist, the long-term return profile and reinvestment capacity weaken, making future organic growth less accretive absent margin recovery.

Weakened and volatile free cash flow conversion

Poor and inconsistent free cash flow undermines funding for strategic initiatives, debt service and buybacks. Lower cash conversion versus earnings raises execution risk: investments or acquisitions may need external financing, and capital returns become less sustainable.

Governance and disclosure friction from activist pressure

Public disputes over segment reporting and activist scrutiny can force costly governance changes, distract management, and create uncertainty around strategic choices. Reduced perceived transparency can impair investor trust and complicate long-term capital-allocation decisions.

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 primarily makes money through (1) subscription revenue from real estate data, analytics, and workflow platforms and (2) marketplace/online advertising revenue from its real estate listing sites. 1) Subscriptions (information & analytics): CoStar sells recurring subscriptions—typically under multi-user and/or multi-year agreements—to commercial real estate professionals (e.g., brokers, owners, lenders, investors, appraisers) and other organizations that need property-level data, market research, comparables, and prospecting tools. Customers pay for access to CoStar’s proprietary database, research content, and platform features that support leasing, investment sales, underwriting, and market analysis. This subscription model is designed to be recurring and is a core driver of revenue. 2) Marketplaces and advertising (online platforms): CoStar operates high-traffic online real estate marketplaces and monetizes them primarily via advertising and listing-related products. Property owners, managers, and brokers pay to promote listings, generate leads, and increase visibility to renters/buyers. Examples include: - Multifamily rentals: Apartments.com generates revenue largely from paid advertising packages and performance/lead-oriented marketing solutions purchased by property owners and managers. - Commercial listings: LoopNet monetizes through paid listing enhancements, advertising, and marketing products that help commercial property listers reach potential tenants and buyers. - Residential portal: Homes.com is designed to generate revenue through advertising and marketing products aimed at real estate agents and other housing market participants (specific product packaging can evolve over time). 3) Other/ancillary revenue: The company may also earn revenue from related services tied to its platforms (e.g., additional marketing products, other digital services, or adjacent offerings). If specific line-item details are not publicly available in a given context, they are not enumerated here. Key factors supporting earnings: CoStar’s scale depends on continuously collecting, verifying, and updating a large proprietary real estate dataset and converting that advantage into recurring subscriptions and paid marketplace visibility. Network effects (more listings and users attracting more users) and brand traffic on its marketplaces can support pricing power and lead volume, which in turn drives advertiser demand.

CoStar Group Financial Statement Overview

Summary

Strong revenue growth and a conservative, low-leverage balance sheet are positives, but 2025 profitability deteriorated sharply (operating profit turning negative and net income near break-even) and free cash flow weakened meaningfully versus prior years, lowering earnings quality and cash conversion.

Income Statement

Revenue growth has been solid over the period, with 2025 annual revenue up meaningfully versus 2024. However, profitability has deteriorated sharply: operating profit turned negative in 2025 (down from modestly positive in 2024 and strong levels in 2022–2023), and net income fell to near break-even in 2025 after healthy profits in prior years. Gross margin remains high, but the step-down in operating and net margins points to elevated operating costs and weaker earnings quality in the most recent year.

Balance Sheet

The balance sheet looks conservative with low leverage: debt-to-equity is consistently low and improved further by 2025, while equity has grown over time. Total assets and equity both trend upward, providing financial flexibility. The main weakness is that returns on equity were modest in the years provided and profitability weakened materially in 2025, which can limit the balance sheet’s ability to compound value if earnings do not recover.

Cash Flow

Operating cash flow remains positive and relatively stable, but free cash flow has become volatile and weak recently. After strong free cash flow in 2020–2023, 2024 turned negative and 2025 remained positive but far below historical levels, reflected in a very large year-over-year decline in 2025. Cash generation versus earnings also looks less supportive lately, with operating cash flow not fully covering net income in 2024–2025 and free cash flow only a small fraction of net income in 2025.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.25B	2.74B	2.46B	2.18B	1.94B
Gross Profit	2.44B	2.18B	1.96B	1.77B	1.59B
EBITDA	272.00M	151.60M	389.80M	588.90M	571.86M
Net Income	7.00M	138.70M	374.70M	369.50M	292.60M
Balance Sheet
Total Assets	10.54B	9.26B	8.92B	8.40B	7.26B
Cash, Cash Equivalents and Short-Term Investments	1.73B	4.68B	5.22B	4.97B	3.83B
Total Debt	1.14B	1.04B	1.11B	1.11B	1.11B
Total Liabilities	2.17B	1.70B	1.58B	1.53B	1.55B
Stockholders Equity	8.33B	7.55B	7.34B	6.87B	5.71B
Cash Flow
Free Cash Flow	41.00M	-245.30M	464.20M	420.05M	404.51M
Operating Cash Flow	430.00M	392.60M	489.50M	478.62M	469.73M
Investing Cash Flow	-2.82B	-912.90M	-238.60M	-69.10M	-381.34M
Financing Cash Flow	-559.00M	-13.70M	-3.70M	733.98M	-15.68M

CoStar Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSGP, the sentiment is Negative. The current price of 44.25 is below the 20-day moving average (MA) of 46.56, below the 50-day MA of 53.86, and below the 200-day MA of 73.08, indicating a bearish trend. The MACD of -2.54 indicates Negative momentum. The RSI at 36.06 is Neutral, neither overbought nor oversold. The STOCH value of 14.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CSGP.

CoStar Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JLL	69 Neutral	$14.08B	20.11	11.09%	―	12.51%	32.34%
CBRE	68 Neutral	$39.87B	41.44	13.63%	―	14.61%	30.19%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
BEKE	62 Neutral	$19.93B	49.85	5.02%	2.26%	25.33%	-15.12%
CWK	60 Neutral	$2.87B	42.44	4.65%	―	6.77%	150.72%
CSGP	56 Neutral	$18.31B	4,003.66	0.09%	―	14.61%	-87.93%
NMRK	56 Neutral	$2.66B	24.52	8.82%	0.68%	22.22%	94.52%

CoStar Group Corporate Events

CoStar Group Appoints Nana Banerjee to Board of Directors

On March 15, 2026, CoStar Group, Inc. appointed Nana Banerjee to its Board of Directors, with the new director immediately joining the company’s existing governance structure and becoming eligible to participate in its standard director compensation program. While Banerjee has not yet been assigned to any board committee, the move reflects CoStar’s ongoing efforts to strengthen its board composition, with the appointment formally disclosed in a press release issued on March 16, 2026.

The most recent analyst rating on (CSGP) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on CoStar Group stock, see the CSGP Stock Forecast page.

CoStar Expands Use of Website for Investor Disclosures

CoStar Group announced that it plans to use its corporate website as a primary channel for distributing material company information, including investor presentations. The company noted that while these materials will be available online for stakeholders, the information posted on its website will not be incorporated by reference into its SEC filings or other official reports.

This approach underscores a broader reliance on digital channels for investor communication, potentially improving accessibility and timeliness of information for shareholders and analysts. At the same time, CoStar is clearly delineating the legal status of website content to maintain a separation between informal disclosures and formal regulatory documents filed with the SEC.

The most recent analyst rating on (CSGP) stock is a Buy with a $67.00 price target. To see the full list of analyst forecasts on CoStar Group stock, see the CSGP Stock Forecast page.

CoStar Amends Executive Severance Plan Amid Activist Pressure

On February 13, 2026, CoStar Group amended its Executive Severance Plan to delete a board-composition-based clause from the definition of “change in control,” while leaving all other provisions intact. The removed director clause, previously developed with independent advisors to support management continuity and aligned with peer practices, was dropped at management’s request to avoid the cost and distraction of litigation in Delaware tied to threatened proxy contests by activist investors Third Point LLC and D. E. Shaw & Co., L.P., signaling the company’s effort to reduce governance-related friction with shareholders while preserving its broader severance framework.

The most recent analyst rating on (CSGP) stock is a Hold with a $53.00 price target. To see the full list of analyst forecasts on CoStar Group stock, see the CSGP Stock Forecast page.

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.