CBRE Group Inc - Class A
Exchange: NYSESector: Real EstateIndustry: Real Estate Services
CBRE Group, Inc., a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com. We routinely post important information on our website, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD.
Did you know?
Trading 407% below its estimated fair value of $693.24.
Current Price
$136.60
+1.57%GoodMoat Value
$693.24
407.5% undervaluedProfile
Valuation (TTM)
Market Cap$40.65B
P/E35.14
EV$48.38B
P/B4.58
Shares Out297.59M
P/Sales1.00
Revenue$40.55B
EV/EBITDA18.57
CBRE Group Inc - Class A (CBRE) Stock Analysis
GoodMoat Analysis
CBRE Group is the world's largest commercial real estate services and investment firm, but its investment case is unfavourable from a value perspective. It fails the initial quality gate with a low moat score and weak financial indicators, while trading at a premium valuation with a low margin of safety.
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CBRE Group Inc. is the world's largest commercial real estate services and investment firm, offering a full suite of services including property sales, leasing, property management, and investment management. Applying the GoodMoat framework, the company shows a weak competitive profile. It likely scores low on the 14-point moat assessment, with potential points only for scale privilege and niche dominance in its field, but it lacks the high-margin, recurring revenue, and switching cost advantages typical of a durable moat. Financially, the quality indicators are weak: a profit margin of 2.9% and operating margin of 3.2% are low, the Debt/Equity ratio of 1.13 indicates a leveraged balance sheet, and the Free Cash Flow Yield of 2.0% is modest. The P/E of 34.7 is high relative to the company's growth and profitability profile. According to the Decision Framework, a business with a low moat score and multiple weak quality ratings fails the initial 'Moat & Quality Gate' and does not warrant further valuation analysis. The provided GoodMoat Target price of $693.24 suggests a significant premium to the current $134.75, but this appears disconnected from the fundamental metrics and the framework's conservative thresholds. For a value investor, the combination of a weak business model score, high valuation multiples, and low profitability margins makes this an unfavourable candidate for deeper investigation. Analysis based on data as of 2024-05-15.
Market Cap$40.65B
Current Price$136.60
P/E Ratio35.14
Forward P/E—
PEG Ratio-2.94
EPS$3.85
Book Value$29.83
P/B Ratio4.58
CBRE Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -2.4% FCF growth (CAGR)
Cash vs Debt
Net Debt: 8.0B
Revenue
23.9B
FY19
23.8B
FY20
27.7B
FY21
30.8B
FY22
31.9B
FY23
35.8B
FY24
40.5B
FY25
Net Income
1.3B
FY19
752M
FY20
1.8B
FY21
1.4B
FY22
986M
FY23
968M
FY24
1.2B
FY25
CBRE 52-Week Range
$113.94
$171.61
50-Day MA: $147.53200-Day MA: $153.67
Did you know?
Earnings per share grew at a -2.4% CAGR.
CBRE Group Inc - Class A (CBRE) Financial Summary
CBRE Group Inc - Class A (CBRE) is a Real Estate company in the Real Estate Services industry, listed on NYSE. The stock currently trades at $136.60 with a market capitalization of $40.65B.
Key valuation metrics include a P/E ratio of 35.14, price-to-book ratio of 4.58, and EPS of $3.85. The company reports a profit margin of 2.9% and return on equity of 13.0%.
CBRE Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $40.65B |
| P/E Ratio | 35.14 |
| EPS | $3.85 |
| P/B Ratio | 4.58 |
| P/S Ratio | 1.00 |
| EV/EBITDA | 18.57 |
| Profit Margin | 2.9% |
| Return on Equity | 13.0% |
| Debt/Equity | 1.13 |
CBRE Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $23.89B | $1.28B |
| FY20 | $23.83B | $751.99M |
| FY21 | $27.75B | $1.84B |
| FY22 | $30.83B | $1.41B |
| FY23 | $31.95B | $986.00M |
| FY24 | $35.77B | $968.00M |
| FY25 | $40.55B | $1.16B |
CBRE Group Inc - Class A (CBRE) Valuation
Based on GoodMoat's DCF model, CBRE Group Inc - Class A has a fair value estimate of $693.24. At the current price of $136.60, the stock appears 80.3% undervalued relative to our intrinsic value estimate.
CBRE Quality Indicators
CBRE Group Inc - Class A maintains a profit margin of 2.9% and an operating margin of 3.2%. Return on equity stands at 13.0%. The current ratio is 1.09. Debt-to-equity ratio is 1.13.
About CBRE Group Inc - Class A
CBRE Group, Inc., a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com. We routinely post important information on our website, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD.
CBRE Free Cash Flow
CBRE Group Inc - Class A generated $803.00M in trailing twelve-month free cash flow, representing an FCF yield of 1.98%. This low FCF yield may reflect heavy reinvestment or growth spending.
CBRE Shares Outstanding
CBRE Group Inc - Class A has 0.30 billion shares outstanding at a share price of $136.60, giving it a market capitalization of $40.65B.
CBRE Recent Insider Trades
Recent insider transactions at CBRE Group Inc - Class A include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Doellinger Chad J (Chief Legal & Admin. Officer) | SELL | 471 | $62883.21 |
| Giamartino Emma E. (CFO & Chief Investment Officer) | SELL | 9,223 | $1.37M |