CSGP GoodMoat Verdict
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Costar Group Inc
Exchange: NASDAQSector: Real EstateIndustry: Real Estate Services
CoStar Group is a global leader in commercial real estate information, analytics, online marketplaces, and 3D digital twin technology. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives. CoStar Group’s major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; and Homes.com, the fastest-growing residential real estate marketplace. CoStar Group’s industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible, STR, a global leader in hospitality data and benchmarking, Ten-X, an online platform for commercial real estate auctions and negotiated bids and OnTheMarket, a leading residential property portal in the United Kingdom. CoStar Group’s websites attracted over 130 million average monthly unique visitors in the first quarter of 2025, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information.
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Trading 71% above its estimated fair value of $10.81.
Current Price
$37.38
-3.59%GoodMoat Value
$10.81
71.1% overvaluedProfile
Valuation (TTM)
Market Cap$15.84B
P/E2263.21
EV$17.64B
P/B1.90
Shares Out423.82M
P/Sales4.88
Revenue$3.25B
EV/EBITDA47.35
Costar Group Inc (CSGP) Quality Analysis
GoodMoat Analysis
CoStar Group exhibits a potentially strong competitive moat but presents a deeply unfavourable quality profile for a value investor. The business is currently unprofitable on an operating basis and generates extremely low returns on capital, failing key quality thresholds. Its valuation appears extreme relative to its current financial performance.
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Applying the GoodMoat framework, CoStar Group's quality indicators are predominantly weak. The company's operating margin of -2.2% and GAAP profitability of just $0.02 EPS indicate it is not currently earning an economic profit, a core tenet of value investing. While revenue growth is strong at 26.9% YoY, this is not translating to bottom-line returns or robust cash flow, with a Free Cash Flow (FCF) Yield of only 0.2%. This fails the framework's test for strong, growing FCF conversion. The Return on Equity (ROE) of 0.1% is far below the sustainable high threshold of >15-20% for quality. The balance sheet is a neutral point, with a low Debt/Equity ratio of 0.14, indicating financial flexibility. However, the lack of operating leverage, where expense growth outpaces revenue gains to create negative margins, is a significant concern. From a moat perspective, the company likely scores well on criteria like proprietary data (its extensive real estate database) and high switching costs for its mission-critical information services, which supports its competitive position. Yet, for a value investor, a strong moat must be paired with the ability to convert that advantage into high returns on capital, which CoStar is demonstrably not doing at present. The current financials show a business investing heavily for growth at the expense of current profitability.
CSGP Profitability
Profitability trend analysis coming soon
CSGP Growth
Growth trend analysis coming soon
CSGP Financial Health
Financial health indicators coming soon
CSGP Quality & Fundamental Analysis
Costar Group Inc (CSGP) is a Real Estate company in the Real Estate Services industry, listed on NASDAQ. This quality analysis page evaluates Costar Group Inc's financial health using the Piotroski F-Score methodology, profitability ratios, growth trajectory, and balance sheet strength.
Costar Group Inc has a Piotroski F-Score of N/A out of 9, measuring profitability, leverage, and operating efficiency. The company operates with a profit margin of 0.22% and a return on equity (ROE) of 0.08%. Return on assets (ROA) stands at 0.07%.
The debt-to-equity ratio is 0.14, with a current ratio of 2.84. Operating margin is -2.22%.
GoodMoat's quality analysis uses AI-powered insights to evaluate whether Costar Group Inc is a fundamentally sound investment. The GoodMoat Verdict synthesizes profitability, growth, and financial health scores into a clear investment quality rating. Use these metrics alongside valuation tools like the DCF calculator and fair value models to make informed investment decisions.