CoStar Group (CSGP) AI Stock Analysis

• Market Cap: $27.98B
• Dividend Yield: N/A
• Average Volume (3M): 4.09M
• Price to Earnings (P/E): 1284.4
• Beta (1Y): 0.91
• 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: 4,061,247
• 30 Day Avg. Volume: 4,093,352
• 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: 1.23
• Enterprise Value/Revenue: 11.30
• Enterprise Value/Gross Profit: 14.26
• Enterprise Value/Ebitda: 227.94
• 1Y Price Target: $92.88
• Price Target Upside: 41.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 0.84
• Revenue Forecast (FY): $3.24B

• Rating: 62 Neutral
• Price Target: $75.00 ▲(14.47% Upside)

CoStar Group's overall stock score reflects a mix of strong earnings performance and significant growth in key segments, particularly residential portals, as highlighted in the earnings call. However, the stock faces challenges from a high P/E ratio, bearish technical indicators, and operational efficiency issues. The company's robust balance sheet and optimistic guidance provide some support, but liquidity concerns and market competition pose risks.

Positive Factors

Revenue Growth

Consistent double-digit revenue growth over 58 quarters indicates strong market demand and effective business strategies, ensuring long-term stability.

AI Integration

Successful AI integration enhances user experience and operational efficiency, potentially increasing customer retention and revenue over time.

Balance Sheet Strength

Low leverage provides financial flexibility and reduces risk, enabling the company to invest in growth opportunities and weather economic downturns.

Negative Factors

Operational Challenges

Negative EBIT margin indicates operational inefficiencies, which could impact profitability if not addressed, affecting long-term financial health.

Free Cash Flow Concerns

Negative free cash flow limits the company's ability to reinvest in growth and may necessitate external financing, impacting financial flexibility.

Seasonal Trends Impact

Seasonal impacts on bookings can lead to revenue volatility, requiring strategic adjustments to maintain consistent financial performance.

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-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 shows strong revenue growth and gross profit margins, but faces challenges in operational efficiency and profitability, as reflected in declining net profit margins and negative EBIT. The balance sheet remains robust with low leverage, though profitability from equity is limited. Cash flow concerns arise from significant declines in free cash flow growth, necessitating attention to liquidity management.

Income Statement

CoStar Group's income statement shows a stable revenue growth rate of 4.84% TTM, though slower compared to previous years. The gross profit margin remains strong at 79.25%, indicating efficient cost management. However, the net profit margin has significantly decreased to 0.66% TTM, primarily due to negative EBIT margins, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity position with a low debt-to-equity ratio of 0.021 TTM, indicating low financial leverage and risk. However, the return on equity has decreased to 0.24% TTM, suggesting limited profitability from equity investments. The equity ratio remains healthy, supporting financial stability.

Cash Flow

Cash flow analysis reveals a concerning decline in free cash flow growth, down by 613.95% TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is 0.47 TTM, showing reduced cash generation efficiency. Despite this, the free cash flow to net income ratio is relatively strong at 0.78 TTM, suggesting some resilience in cash flow management.

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: 65.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• 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 65.52 is below the 20-day moving average (MA) of 69.71, below the 50-day MA of 76.82, and below the 200-day MA of 80.38, indicating a bearish trend. The MACD of -3.03 indicates Negative momentum. The RSI at 25.79 is Positive, neither overbought nor oversold. The STOCH value of 15.28 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	72 Outperform	$14.31B	23.25	9.14%	―	12.51%	32.34%
CBRE	69 Neutral	$45.17B	37.44	14.26%	―	14.61%	30.19%
CWK	68 Neutral	$3.47B	15.72	12.21%	―	6.77%	150.72%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CSGP	62 Neutral	$27.98B	1,284.44	0.25%	―	14.61%	-87.93%
BEKE	62 Neutral	$19.47B	40.32	4.91%	2.14%	25.33%	-13.60%
NMRK	55 Neutral	$2.83B	26.76	8.08%	0.78%	22.22%	94.52%

CoStar Group Corporate Events

CoStar Group’s Earnings Call Highlights Robust Growth

The recent earnings call for CoStar Group conveyed a generally positive sentiment, highlighting robust revenue and EBITDA growth, successful AI integration, and beneficial impacts from recent acquisitions. However, the company is navigating challenges related to market competition, including legal issues faced by Zillow, and some seasonal impacts on bookings.

CoStar Group Reports Strong Q3 Revenue Growth

CoStar Group, Inc. is a leading provider of online real estate marketplaces, information, analytics, and 3D digital twin technology, primarily operating in the commercial real estate sector. The company is known for its comprehensive market intelligence and innovative technology solutions.

CoStar Group Enhances Transparency with Website Updates

CoStar Group plans to use its corporate website as a primary channel for distributing important company information, such as investor presentations. This move highlights the company’s commitment to transparency and accessibility, potentially enhancing its communication with stakeholders and aligning with modern digital information dissemination practices.

The most recent analyst rating on (CSGP) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on CoStar Group stock, see the CSGP Stock Forecast page.

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.

The most recent analyst rating on (CSGP) stock is a Buy with a $97.00 price target. To see the full list of analyst forecasts on CoStar Group stock, see the CSGP Stock Forecast page.