CoStar Group (CSGP) AI Stock Analysis

• Market Cap: $34.94B
• Dividend Yield: N/A
• Average Volume (3M): 2.81M
• Price to Earnings (P/E): 294.0
• Beta (1Y): 0.98
• Revenue Growth: 11.27%
• EPS Growth: -60.22%
• Country: US
• Employees: 6,593
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - Services
• EPS (TTM): 0.14
• Shares Outstanding: 421,886,660
• 10 Day Avg. Volume: 2,430,404
• 30 Day Avg. Volume: 2,805,330
• PEG Ratio: 3.45
• Price to Book (P/B): 4.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 72.91
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 2.47
• Enterprise Value/Gross Profit: 12.02
• Enterprise Value/Ebitda: 38.91
• 1Y Price Target: $88.30
• Price Target Upside: 4.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 72 Outperform
• Price Target: $86.00 ▲(1.78%Upside)

CoStar Group's strong earnings call performance and strategic corporate events boost its overall score. However, the high P/E ratio indicates overvaluation, and operational profitability challenges pose risks. Technical indicators suggest some stability, but bearish momentum persists.

Positive Factors

International Expansion

Domain would represent CoStar’s first major foray into the Asia-Pacific market, and international expansion is becoming a bigger priority for the company.

Long-term Market Positioning

There is increasing optimism about the long-term positioning of Homes.com in the residential market, with expectations of tangible monetization progress in the second quarter.

Salesforce and Bookings

Salesforce hiring is helping to boost momentum across all major business lines, with Homes.com seeing improved net new bookings.

Negative Factors

Investment Overhang

CoStar’s large investment into Homes.com has been a near-term overhang on the stock, especially with monetization being slow to build in the first year.

Traffic Generation Risk

Generating enough traffic is one of the bigger risks to medium-term success, especially given how entrenched Zillow is with home shoppers.

CoStar Group Business Overview & Revenue Model

Company Description

CoStar Group, Inc. (CSGP) is a leading provider of commercial real estate information, analytics, and online marketplaces. The company operates primarily in the sectors of commercial real estate, real estate investment, and real estate technology. CoStar Group's core products and services include comprehensive databases of real estate information, advanced analytics tools, and a suite of online marketplaces designed to connect buyers, sellers, and lessees of commercial properties.

How the Company Makes Money

CoStar Group generates revenue primarily through subscription fees for access to its extensive databases and analytics services. Clients, including real estate professionals, investors, and financial institutions, pay for subscriptions to obtain detailed information on commercial properties, market trends, and analytics. Additionally, CoStar Group earns money through its online marketplaces, such as LoopNet and Apartments.com, where it provides advertising services for property owners and managers seeking to reach potential tenants or buyers. Significant partnerships with industry organizations and continuous investments in technology and data acquisition further enhance its offerings, contributing to its revenue growth.

CoStar Group Financial Statement Overview

Summary

CoStar Group demonstrates solid revenue growth and a strong balance sheet with low leverage, positioning it well in the real estate services industry. However, challenges in operational profitability and cash flow volatility pose potential risks. Continued focus on enhancing operational efficiency and cash generation could bolster financial performance.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.81B	2.74B	2.46B	2.18B	1.94B	1.66B
Gross Profit	2.23B	2.18B	1.96B	1.77B	1.59B	1.35B
EBITDA	165.70M	151.60M	389.80M	662.83M	571.90M	406.15M
Net Income	117.20M	138.70M	374.70M	369.50M	292.60M	227.13M
Balance Sheet
Total Assets	10.43B	9.26B	8.92B	8.40B	7.26B	6.92B
Cash, Cash Equivalents and Short-Term Investments	3.97B	4.68B	5.22B	4.97B	3.83B	3.76B
Total Debt	1.14B	1.15B	1.11B	1.11B	1.12B	1.14B
Total Liabilities	1.87B	1.70B	1.58B	1.53B	1.55B	1.54B
Stockholders Equity	8.56B	7.55B	7.34B	6.87B	5.71B	5.38B
Cash Flow
Free Cash Flow	-34.00M	-245.30M	464.20M	420.05M	404.51M	437.76M
Operating Cash Flow	302.80M	392.60M	489.50M	478.62M	469.73M	486.11M
Investing Cash Flow	-1.44B	-912.90M	-238.60M	-69.06M	-381.34M	-464.16M
Financing Cash Flow	-35.10M	-13.70M	-3.70M	733.98M	-15.68M	2.66B

CoStar Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 84.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSGP, the sentiment is Positive. The current price of 84.5 is above the 20-day moving average (MA) of 81.34, above the 50-day MA of 78.20, and above the 200-day MA of 76.66, indicating a bullish trend. The MACD of 1.32 indicates Negative momentum. The RSI at 67.98 is Neutral, neither overbought nor oversold. The STOCH value of 81.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$12.09B	23.09	8.16%	―	13.63%	78.40%
CBRE	76 Outperform	$41.66B	43.12	12.15%	―	13.14%	1.70%
CWK	76 Outperform	$2.66B	17.09	9.53%	―	1.24%	1205.18%
CSGP	72 Outperform	$34.94B	294.02	1.47%	―	11.27%	-60.22%
BEKE	70 Outperform	$21.78B	34.13	6.53%	1.99%	34.99%	28.80%
NMRK	60 Neutral	$2.26B	31.11	5.32%	0.98%	13.87%	90.42%
Sector *	53 Neutral	$1.19B	3.45	0.13%	7.12%	-2.13%	-128.06%

CoStar Group Corporate Events

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.

The most recent analyst rating on (CSGP) stock is a Buy with a $105.00 price target. To see the full list of analyst forecasts on CoStar Group stock, see the CSGP Stock Forecast page.

CoStar Group to Acquire Majority of Domain Holdings

On May 9, 2025, CoStar Group entered into a binding Scheme Implementation Deed with Domain Holdings Australia Limited to acquire the remaining 83% of Domain’s shares it does not already own, for a total cash consideration of $4.43 AUD per share. This acquisition, valued at approximately $2.3 billion AUD, is subject to various approvals and conditions, including shareholder and court approvals, and is expected to significantly impact CoStar Group’s market positioning by expanding its presence in the Australian real estate market.