CoStar Group (CSGP) AI Stock Analysis

• Market Cap: $37.23B
• Dividend Yield: N/A
• Average Volume (3M): 2.55M
• Price to Earnings (P/E): 344.7
• Beta (1Y): 0.95
• Revenue Growth: 12.18%
• EPS Growth: -51.21%
• Country: US
• Employees: 6,593
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.17
• Shares Outstanding: 423,650,360
• 10 Day Avg. Volume: 2,274,630
• 30 Day Avg. Volume: 2,548,572
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 10.70
• Enterprise Value/Gross Profit: 13.48
• Enterprise Value/Ebitda: 172.00
• 1Y Price Target: $97.36
• Price Target Upside: 10.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 70 Outperform
• Price Target: $98.00 ▲(11.53% Upside)

CoStar Group's overall stock score reflects strong revenue growth and a robust balance sheet, supported by positive earnings call sentiment. However, high valuation metrics and operational challenges, particularly in cash flow and profitability, weigh on the score. Technical indicators suggest potential weakness, further impacting the overall assessment.

Positive Factors

Revenue Growth

Consistent double-digit revenue growth over 57 quarters highlights CoStar's strong market position and effective business model, ensuring sustained financial health.

International Expansion

The acquisition of Domain Holdings enhances CoStar's global footprint, providing access to new markets and supporting long-term growth and diversification.

Strong Balance Sheet

A low debt-to-equity ratio indicates financial stability, allowing CoStar to invest in growth opportunities without over-leveraging, ensuring long-term resilience.

Negative Factors

Profitability Challenges

Ongoing profitability issues with Matterport could strain CoStar's overall margins, requiring strategic adjustments to improve operational efficiency and profitability.

Negative Free Cash Flow

Negative free cash flow presents a risk to CoStar's financial flexibility, potentially limiting its ability to fund new initiatives or weather economic downturns.

Traffic Decline in Rental Portals

Decreasing traffic on rental portals could impact advertising revenue and market share, necessitating strategic efforts to enhance user engagement and platform value.

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 a robust balance sheet with low leverage. However, challenges with negative EBIT and free cash flow are concerns. The company has a solid equity base but needs to improve profitability and cash flow management.

Income Statement

CoStar Group has demonstrated a strong revenue growth trajectory, with a 13.6% increase in revenues from 2023 to TTM 2025. However, the current EBIT margin is negative at -0.22% in the TTM period, reflecting operational challenges. Despite this, the company maintains a positive net income margin of 3.57%. Gross profit margin remains robust at 78.42%, indicating strong cost management.

Balance Sheet

The company exhibits a strong financial position with a low debt-to-equity ratio of 0.12, indicating low leverage. The equity ratio is high at 81.86%, showcasing a solid equity base. Return on equity is modest at 1.21%, suggesting room for improvement in efficiency.

Cash Flow

CoStar Group's cash flow analysis reveals a decline in free cash flow, with a negative free cash flow in the TTM period. The operating cash flow to net income ratio is 3.78, indicating high cash generation relative to net income. The free cash flow to net income ratio is negative due to the negative free cash flow, presenting a risk factor.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.92B	2.74B	2.46B	2.18B	1.94B	1.66B
Gross Profit	2.31B	2.18B	1.96B	1.77B	1.59B	1.35B
EBITDA	181.30M	151.60M	389.80M	588.90M	571.86M	406.15M
Net Income	104.20M	138.70M	374.70M	369.50M	292.60M	227.13M
Balance Sheet
Total Assets	10.51B	9.26B	8.92B	8.40B	7.26B	6.92B
Cash, Cash Equivalents and Short-Term Investments	4.04B	4.68B	5.22B	4.97B	3.83B	3.76B
Total Debt	1.02B	1.13B	1.11B	1.11B	1.12B	1.14B
Total Liabilities	1.91B	1.70B	1.58B	1.53B	1.55B	1.54B
Stockholders Equity	8.60B	7.55B	7.34B	6.87B	5.71B	5.38B
Cash Flow
Free Cash Flow	-55.20M	-245.30M	464.20M	420.05M	404.51M	437.76M
Operating Cash Flow	394.60M	392.60M	489.50M	478.62M	469.73M	486.11M
Investing Cash Flow	-1.50B	-912.90M	-238.60M	-69.06M	-381.34M	-464.16M
Financing Cash Flow	-96.80M	-13.70M	-3.70M	733.98M	-15.68M	2.66B

CoStar Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 87.87
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 87.87 is below the 20-day moving average (MA) of 88.69, below the 50-day MA of 89.66, and above the 200-day MA of 80.14, indicating a neutral trend. The MACD of -0.37 indicates Negative momentum. The RSI at 52.11 is Neutral, neither overbought nor oversold. The STOCH value of 51.74 is Neutral, 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	15.02B	27.25	8.01%	―	13.47%	47.52%
CBRE	74 Outperform	48.90B	46.04	13.21%	―	14.96%	19.11%
CWK	73 Outperform	3.85B	18.90	10.81%	―	4.63%	887.64%
BEKE	72 Outperform	24.33B	43.32	5.70%	1.77%	32.76%	-2.01%
CSGP	70 Outperform	$37.23B	344.72	1.30%	―	12.18%	-51.21%
NMRK	66 Neutral	3.39B	44.24	4.94%	0.62%	16.29%	69.89%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

CoStar Group Corporate Events

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.