CSGP Fair Value Estimate
$10.8171.1% overvalued
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.
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) Valuation
GoodMoat Analysis
CoStar Group's current price of $41.41 is deeply unfavourable from a value investing perspective, trading nearly 284% above the GoodMoat Target of $10.81. This indicates a significant negative margin of safety. The stock's extreme valuation multiples, including a P/E of over 2,500x, are disconnected from its current minimal profitability.
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A valuation assessment using the GoodMoat framework reveals severe overvaluation. The primary tool, the DCF-derived GoodMoat Target, is $10.81, implying the current price of $41.41 offers a negative margin of safety of approximately -283%. This falls deep into the 'Unfavourable' band, far from the >20% threshold required for a favourable assessment. Supporting valuation metrics are equally extreme. The trailing P/E of 2,507x is astronomically high, indicating the market is pricing in decades of perfect future growth against current earnings of just $0.02 per share. While the company shows strong revenue growth of 26.9% YoY, its profitability metrics are weak, with a 0.2% profit margin and a negative operating margin of -2.2%. This disconnect between price and fundamental earnings power is a critical red flag. The free cash flow yield of 0.2% is negligible, further suggesting the price is not justified by current cash generation. For a value investor, the stock appears expensive relative to its current quality, trading on future potential rather than present financial strength, which introduces significant execution risk. Analysis based on data as of 2024-05-15.
CSGP Valuation Metrics
FCF$41.00M
FCF Growth Rate-31.91%
EPS Growth (CAGR)-46.98%
WACC10.00%
Fair Value Models
Graham Number, PEG-based, and Earnings-based models
View Fair Value →CSGP Valuation & Fair Value Analysis
Costar Group Inc (CSGP) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.
The GoodMoat Fair Value target for Costar Group Inc is $10.81. The current stock price is $37.38, suggesting the stock is 245.8% overvalued.
The price-to-earnings (P/E) ratio is 2263.21. Price-to-book ratio is 1.90. Price-to-sales ratio is 4.88. Enterprise value to EBITDA is 47.35. PEG ratio is -84.87.
GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Costar Group Inc's intrinsic value.