CoStar Group (CSGP) AI Stock Analysis

• Market Cap: $40.08B
• Dividend Yield: N/A
• Average Volume (3M): 2.86M
• Price to Earnings (P/E): 371.1
• Beta (1Y): 0.97
• Revenue Growth: 12.18%
• EPS Growth: -51.21%
• Country: US
• Employees: 6,593
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - Services
• EPS (TTM): 0.17
• Shares Outstanding: 423,650,360
• 10 Day Avg. Volume: 3,634,971
• 30 Day Avg. Volume: 2,857,073
• PEG Ratio: -35.42
• Price to Book (P/B): 4.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -695.50
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 3.21
• Enterprise Value/Gross Profit: 15.61
• Enterprise Value/Ebitda: 50.38
• 1Y Price Target: $97.36
• Price Target Upside: 2.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 75 Outperform
• Price Target: $102.00 ▲(7.82%Upside)

CoStar Group's strong revenue growth, strategic acquisitions, and positive earnings call sentiment drive a solid overall stock score. However, high valuation concerns and operational challenges, such as negative cash flow and EBIT margin, temper the outlook. Technical indicators support the current upward trend but indicate caution due to overbought signals.

Positive Factors

Earnings

CoStar reported better-than-expected second-quarter results with record net new bookings of $93 million.

Revenue Growth

Second-quarter revenue of $781 million was up 15% year-over-year, exceeding estimates.

Salesforce Expansion

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

Negative Factors

Competitive Threats

There is concern about Zillow as a rising competitive threat to Apartments.com.

Margins

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

Monetization

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.

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 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'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: Positive
• Last Price: 94.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 94.6 is above the 20-day moving average (MA) of 88.35, above the 50-day MA of 82.50, and above the 200-day MA of 77.84, indicating a bullish trend. The MACD of 3.74 indicates Negative momentum. The RSI at 74.85 is Negative, neither overbought nor oversold. The STOCH value of 86.01 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
CBRE	77 Outperform	$45.81B	43.13	13.13%	―	14.96%	19.11%
JLL	77 Outperform	$12.60B	24.00	8.16%	―	13.63%	78.40%
CSGP	75 Outperform	$40.08B	371.13	1.30%	―	12.18%	-51.21%
CWK	74 Outperform	$2.82B	17.61	9.53%	―	1.24%	1205.18%
BEKE	70 Outperform	$21.74B	34.83	6.53%	1.98%	34.99%	28.80%
NMRK	66 Neutral	$2.80B	35.90	5.49%	0.79%	16.74%	69.89%
Sector *	63 Neutral	$6.75B	14.42	-1.87%	7.29%	3.96%	-36.04%

CoStar Group Corporate Events

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.

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 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.