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CoStar Group (CSGP) Fair Value & Analysis

Real Estate · US · Market cap $12.2B

CG CoStar Group logo CoStar Group CSGP · US
Price$33.05
Fair Value$4.64
Upside-86.0%
Quality52/100
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Healthy Growth
Thin margins · 0.7% net margin
Low debt · generates free cash flow
Trails peers (3/14)
Narrow moat 27/100
Evidence: High Range $3.33 – $8.10 Share as image

Fair value as of: Aug 13, 2026

From 15 valuation models · updated yesterday

Fair value updated Aug 13, 2026, revised from $4.75 to $4.64 (−2.3%) since Jul 18, 2026. Share price +19.4% over the past month.

A solid business, but screening 86% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case ($8.10). The favourable scenario is already priced in.
  • Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range ($3.33 to $8.10) leaves room in how you read the outcome.
  • As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.
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Price vs Fair Value (5 years)

$99.74 $27.14 Fair Value $4.64 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range $27.14 – $99.74 · fair‑value band $3.33 – $8.10 · the $33.05 price screens above the $4.64 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

CoStar Group (CSGP) currently trades at $33.05, while our model-based Fair Value estimate is $4.64, implying the stock looks roughly 86.0% overvalued today. The Quality Score stands at 52/100 (solid quality), in the Real Estate sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, CoStar Group generated revenue of $3.4B at a net margin of 0.7%. Revenue grew 22.5% year over year. It earns a return on equity of 0.3%. The balance sheet holds a net cash position of $589M. Fundamentals as of Aug 13, 2026

Our scenario range runs from $3.33 (bear case) to $8.10 (bull case); at $33.05, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 66% below its 52-week high and 5% above its 52-week low, currently below its 200-day average. For context, the median of 10 Real Estate peers we cover trades at 15% fair-value upside, at -86%, CSGP screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely ($0.2900 to $13.67). Read the values as a conservative anchor, not as a price target.
Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF $3.27 $4.77 $7.53 80
Residual Income $13.63 $12.57 $8.36 76
Rev-Margin DCF $2.92 $3.87 $5.25 74
All 15 models by family
DCF Models
FCF DCF $3.32 $4.47 $7.56 38
5Y Revenue Exit $2.92 $3.85 $5.35 39
5Y EBITDA Exit $5.90 $10.46 $17.52 41
10Y Revenue Exit $3.00 $4.05 $5.54 36
10Y EBITDA Exit $5.10 $9.40 $17.24 37
Dividend Discount
Gordon GGM $0.5200 $1.08 $1.71 70
DDM Multi-Stage $0.5200 $0.9100 $1.13 61
Multiples
P/S Multiple $0.2200 $0.2900 $0.3600 58
P/B Multiple $0.2200 $0.2900 $0.3600 55
EV/EBITDA $7.12 $8.89 $10.66 54
EV/Revenue $2.73 $3.12 $3.51 43
Asset-Based
NCAV (Graham) $10.20 $13.67 $20.41 50
Growth DCF
Growth DCF $3.27 $4.77 $7.53 80
Rev-Margin DCF $2.92 $3.87 $5.25 74
Economic Profit
Residual Income $13.63 $12.57 $8.36 76

Widest divergence: Asset-Based ($13.67) versus Multiples ($0.2900). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) $3.4B
Revenue growth (YoY) +22.5%
Net margin 0.7%
Return on equity 0.3%
Free cash flow $41.0M FY2025
P/E ratio 472.1
More key figures
Operating margin 0.3%
EPS (TTM) $0.0700
EPS growth (YoY) -25.9%
Net cash $589M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 51 · Market factors (momentum, volatility) 27

Profitability 21
Margins and returns on capital today
Quality Growth 51
Are margins and returns improving?
Cashflow 43
Earnings quality: real cash, not paper profit
Fin. Strength 83
Balance sheet, leverage, solvency risk
Investment 57
Disciplined investing over empire-building
Low Volatility 59
Calm price path (market factor)
Momentum 18
Price trend over the last 3–12 months (market factor)
52W Momentum 5
Distance to the 52-week high (market factor)
Net Issuance 56
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

CoStar Group, Inc. provides information, analytics, and online marketplace services to real estate and related business communities in the United States, Australia, Canada, Europe, the Asia Pacific, and Latin America.

Full company description

CoStar Group, Inc. provides information, analytics, and online marketplace services to real estate and related business communities in the United States, Australia, Canada, Europe, the Asia Pacific, and Latin America. It offers CoStar Property that provides inventory of office, industrial, retail, multifamily, hospitality, and student housing, and land properties; CoStar Leasing, a data on lease transactions and tools to manage user-entered lease data; CoStar Sales, a database of commercial real estate sales transactions; CoStar Owners provides detailed portfolio information; CoStar Markets to view and report on market and submarket trends; and CoStar Tenant that provides tenant information. The company also provides hospitality benchmarking that allows hotels to measure performance against competitors; Debt Solutions, a tool for lenders to manage loan portfolios and risk; and real estate and lease management technology solutions, such as lease administration, lease accounting, and transaction management services. In addition, it offers Apartamentos.com, an apartment marketing sites; LoopNet.com, a commercial property marketing sites; Homes.com, a home for sale listings site; Ten-X, an online auction platform for commercial real estate; Land.com, a marketplace for rural land sales; and BizBuySell.com, a marketplace for operating businesses and franchises for sale. It serves sales, leasing, and mortgage brokers; property, real estate investment trust, insurance companies, and asset managers; and government agencies, property owners, mortgage-backed security issuers, appraisers, design and construction professionals, pension fund managers, real estate developers, reporters tenant vendors, bankers, building services vendors, mortgage bankers, communications providers, retailers, institutional advisors, hospitality owners, investors, and real estate agents. The company was founded in 1986 and is headquartered in Arlington, Virginia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

CoStar Group reported revenue of $3.2B in FY2025 versus $1.9B in FY2021, a compound +13.7%/yr. Reported net income was $7.0M in FY2025, compounding −60.7%/yr from FY2021.

Growth Quality 85/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$3.2B
Latest YoY
+18.7%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+14.2%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+14.4%
Avg. growth/yr (28Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+24.0%
Revenue +13.7%/yr
FY21 $1.9B
FY22 $2.2B
FY23 $2.5B
FY24 $2.7B
FY25 $3.2B
Net income −60.7%/yr
FY21 $293M
FY22 $370M
FY23 $375M
FY24 $139M
FY25 $7.0M
Character of growth · EPS growth decomposed (2014-2025) +14.1 % p.a.
Revenue per share +13.1 pp

of which total revenue +16.5 pp · buybacks/dilution −3.5 pp

EBIT margin −11.7 pp
Tax rate +1.7 pp
Residual (interest, one-offs) +11.0 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

CSGP screens 86% overvalued. Compare with Plaza S.A →

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Cite: Fair Value Calculator (2026). "CoStar Group Fair Value". https://www.fairvalue-calculator.com/stock/CSGP

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Real Estate Services · 529 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 51 · Below median
Fair Value upside −86% · Bottom 25%
Return on equity (TTM) 0% · Below median
Return on assets -0% · Bottom 25%
Net margin (TTM) 1% · Below median
Operating margin (TTM) 0% · Bottom 25%
Revenue growth 23% · Top 25%
Debt / equity 0.12× · Lower than median

Valuation Multiples vs Real Estate Services median · lower = cheaper

P/E (TTM) 472.1× · Pricier than 75% of peers
P/B 1.46× · Pricier than 75% of peers
P/S (TTM) 3.56× · Pricier than median
P/FCF 296.6× · Pricier than 75% of peers
EV/EBITDA 42.0× · Pricier than 75% of peers
PEG 0.11× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 35
FUTURE 100 · sector 10
PAST 1 · sector 16
HEALTH 94 · sector 85
DIVIDEND 0 · sector 50

VALUE 0: the price sits above our fair-value range.

Insider activity: 66/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Real Estate Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Plaza S.A MALLPLAZA 3,989 CLP 4,571 CLP +15%
PT Solusi Tunas Pratama Tbk SUPR 43,850 IDR 15,049 IDR -66%
Cencosud Shopping S.A CENCOMALLS 2,412 CLP 2,976 CLP +23%
PT Sarana Menara Nusantara Tbk. owns and TOWR 392.00 IDR 1,012 IDR +158%
PT Metropolitan Kentjana Tbk MKPI 22,000 IDR 19,160 IDR -13%
PT Bangun Kosambi Sukses Tbk, CBDK 3,610 IDR 3,464 IDR -4%
IRSA Inversiones y Representaciones Sociedad Anónima, IRSA 2,495 ARS 2,990 ARS +20%
PT Plaza Indonesia Realty Tbk PLIN 2,510 IDR 2,698 IDR +7%
PT MNC Tourism Indonesia Tbk, KPIG 74.00 IDR 122.12 IDR +65%
PT Indonesian Paradise Property Tbk INPP 770.00 IDR 291.52 IDR -62%

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Frequently asked questions

Is CoStar Group (CSGP) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of $4.64 versus a price of $33.05, about −86% (overvalued).
What is the fair value of CSGP?
Our model-based fair value for CoStar Group is $4.64 (as of Aug 13, 2026), built from audited fundamentals. The current price is $33.05.
What is the quality score of CSGP?
CoStar Group has a Quality Score of 52/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of CoStar Group (CSGP)?
CoStar Group reported trailing-twelve-month revenue of about $3.4B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of CSGP?
The net profit margin of CoStar Group is about 0.7%, meaning it keeps roughly 0.7% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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