CoStar Group (CSGP) AI Stock Analysis

• Market Cap: $19.39B
• Dividend Yield: N/A
• Average Volume (3M): 7.41M
• Price to Earnings (P/E): 952.1
• Beta (1Y): 0.84
• 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: 7,077,810
• 30 Day Avg. Volume: 7,407,717
• 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: 1.02
• Enterprise Value/Revenue: 6.49
• Enterprise Value/Gross Profit: 8.19
• Enterprise Value/Ebitda: 130.95
• 1Y Price Target: $73.08
• Price Target Upside: 49.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 1.33
• Revenue Forecast (FY): $3.81B

• Rating: 56 Neutral
• Price Target: $53.00 ▲(8.30% Upside)

The score is held back primarily by weak technicals (downtrend across all key moving averages, negative MACD) and very expensive valuation (P/E ~1006). Financials are mixed—strong balance sheet but materially weaker profitability and free cash flow trends. Offsetting these risks, the latest earnings call and guidance point to strong growth in revenue, EBITDA, and bookings momentum, with corporate actions (buyback and compensation changes) supportive but secondary.

Positive Factors

Very low leverage / strong balance sheet

A debt-to-equity of 0.021 signals durable financial flexibility. Low leverage reduces default risk, funds continued product investment and M&A, and supports share repurchases or downturn resilience without forcing dilutive financing.

Sticky subscription marketplaces

High renewal (99%) and strong NPS indicate entrenched customer relationships and predictable recurring revenue. Marketplace scale and retention support long-term monetization, limit churn-driven revenue volatility, and underpin durable margin expansion.

Consistent revenue growth and marketplace margins

Decades of sustained revenue growth and a ~47% margin in core commercial/info marketplaces reflect a scalable, high-margin business model. This structural performance provides durable cash-generating capacity from core franchises even as new investments mature.

Negative Factors

Sharp profitability deterioration

The collapse in net margin and negative EBIT signal lasting operational stress despite revenue growth. Lower profitability limits reinvestment, erodes returns on equity, and raises the bar for new initiatives to contribute positively to consolidated results.

Severe free cash flow decline

A >600% drop in FCF growth materially weakens internal funding for strategic projects, buybacks, or M&A. Sustained negative FCF trends force dependence on external capital or slower investment, magnifying risk if core margins do not recover.

Governance and capital-allocation conflict over Homes.com

Persistent activist pressure and calls to reshape the board reflect deep shareholder concern about Homes.com spend and strategy. Ongoing governance fights can distract management, create strategic uncertainty, and delay decisive capital-allocation fixes.

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

Mixed fundamentals: steady TTM revenue growth (4.84%) and a very strong balance sheet with low leverage (debt-to-equity 0.021), but profitability has deteriorated sharply (TTM net margin 0.66% vs. 15.26% in 2023, negative EBIT margin) and free cash flow growth is deeply negative (-613.95%).

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: Negative
• Last Price: 48.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 48.94 is below the 20-day moving average (MA) of 55.91, below the 50-day MA of 61.49, and below the 200-day MA of 75.83, indicating a bearish trend. The MACD of -4.80 indicates Positive momentum. The RSI at 33.74 is Neutral, neither overbought nor oversold. The STOCH value of 26.92 is Neutral, 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	79 Outperform	$13.54B	19.15	11.10%	―	12.51%	32.34%
CWK	69 Neutral	$2.86B	14.22	12.21%	―	6.77%	150.72%
CBRE	67 Neutral	$41.69B	39.47	13.38%	―	14.61%	30.19%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
BEKE	62 Neutral	$20.05B	41.65	4.91%	2.26%	25.33%	-15.12%
NMRK	59 Neutral	$2.64B	25.29	8.08%	0.68%	22.22%	94.52%
CSGP	56 Neutral	$19.39B	952.14	0.25%	―	14.61%	-87.93%

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.