A Business at a Glance
0 of 5 daily views used (5 remaining). Sign up free for 10 daily views, or try AAPL for a full preview.
COSTAR GROUP, INC.
CSGP
$9.7B
Mkt Cap
$27.66
+1.92%
COSTAR GROUP, INC. (CSGP) has a current P/E ratio of 1383.0, compared to its historical median P/E of 76.8. The stock is currently considered Expensive based on its historical valuation range.
COSTAR GROUP, INC. (CSGP) has a 5-year average return on invested capital (ROIC) of 7.4%. This is below average and may indicate limited pricing power.
COSTAR GROUP, INC. (CSGP) has a market capitalization of $11.5B. It is classified as a large-cap stock.
COSTAR GROUP, INC. (CSGP) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 8.61%.
Based on historical P/E analysis, COSTAR GROUP, INC. (CSGP) appears expensive. The current P/E of 1383.0 is 1702% above its historical median of 76.8. The estimated fair value CAGR (P/E method) is -14.5%.
COSTAR GROUP, INC. (CSGP) operates in the Services-Business Services, Nec industry, within the Industrials sector.
COSTAR GROUP, INC. (CSGP) reported annual revenue of $3.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
CoStar Group is a leading provider of online real estate marketplaces, information, analytics, and 3D digital twin technology operating across the U.S., Australia, Europe, Canada, and Asia-Pacific. The company operates through two segments: Commercial Real Estate, which includes subscription-based platforms (CoStar, LoopNet) offering comprehensive property databases, leasing and sales analytics, tenant information, and risk management tools, along with complementary services like Matterport's 3D digital twins and Ten-X's commercial auction platform; and Residential Real Estate, which operates consumer-facing marketplaces (Apartments.com, Homes.com, Land.com, Domain, OnTheMarket) that aggregate renter and buyer demand and sell marketing services and leads to agents, owners, and property managers. The business model is predominantly subscription-based with 96% subscription revenue and 80% annual contracts, generating recurring revenue from fixed monthly fees based on factors such as organization size, geographic location, number of properties, and service types, supplemented by transaction-based revenue from premium listings, data capture services, and auction fees. CoStar's competitive moat rests on 35+ years of proprietary database development comprising hundreds of data fields on properties, tenants, sales comparables, and market trends, combined with the largest commercial real estate research department in the industry, a large in-house product development team, and AI-driven data collection and quality systems that create operational efficiencies across its standardized platform. The company serves industry professionals, consumers, brokers, lenders, owners, and investors globally, with particular strength in commercial real estate information and residential marketplace aggregation.
【Accelerating margin expansion ahead】 Management expects significant EBITDA growth and margin expansion through 2026 and beyond, with adjusted EBITDA margins projected to increase by approximately five percentage points each quarter throughout 2026 as marketing investments normalize and operational efficiencies from AI and personnel cost initiatives take hold. The residential segment is expected to reach profitability in Q2 2026 and eventually achieve 50% adjusted EBITDA margins, while the commercial segment continues to benefit from strong sales force productivity and international expansion, particularly with planned launches of CoStar and LoopNet in Australia and Europe. Management is prioritizing revenue growth through continued sales force expansion, new product launches including lease benchmarking and debt solutions capabilities, and cross-selling opportunities across the platform, with confidence in achieving low-to-mid-teens organic revenue growth targets embedded in the company's financial framework through 2030.
| Metric | Target | Period |
|---|---|---|
| Revenue | $3.78 billion–$3.82 billion | Full year 2026 |
| Adjusted EBITDA | $780 million–$820 million | Full year 2026 |
| Adjusted EPS | $1.32–$1.39 | Full year 2026 |
Revenue (Full year 2026): “For full year 2026, we are reaffirming our previous revenue guidance range of $3.78 billion-3.82 billion, a 16%-18% annual growth rate.”
Adjusted EBITDA (Full year 2026): “we now expect adjusted EBITDA to range from $780 million-820 million. This is an increase of $30 million at its midpoint and a full percentage point increase in margin.”
Adjusted EPS (Full year 2026): “Our new adjusted EPS guidance range is $1.32 to $1.39, an increase of $0.09 at the midpoint.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q1 FY2025 Earnings Call, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q4 FY2024 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 3.4B | 3.2B | 2.7B | 2.5B | 2.2B | 1.9B |
| Net Income | 25M | 7.0M | 139M | 375M | 370M | 293M |
| EPS | $0.06 | $0.02 | $0.34 | $0.92 | $0.93 | $0.74 |
| Free Cash Flow | 230M | 123M | -186M | 372M | 444M | 346M |
| ROIC | -0.2% | 0.1% | - | 6.9% | 11.7% | 11.0% |
| Gross Margin | 78.6% | 78.9% | 79.6% | 80.0% | 55.5% | 53.2% |
| Debt/Equity | 0.13 | 0.14 | 0.15 | 0.15 | 0.16 | 0.20 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | -26M | -72M | - | 282M | 451M | 432M |
| Operating Margin | -0.8% | -2.2% | - | 11.5% | 20.7% | 22.2% |
| ROE | 0.3% | 0.1% | 1.9% | 5.3% | 5.9% | 5.3% |
| Shares Outstanding | 414M | 350M | 409M | 408M | 397M | 395M |
COSTAR GROUP, INC. passes 4 of 9 quality checks, suggesting mixed fundamentals.
On a free-cash-flow basis, the stock trades at 94.4x vs a median of 47.9x. The company's 5-year average ROIC is 7.4% with a gross margin of 69.4%. Total shareholder yield (buybacks) is 8.6%. At current prices, the estimated annualized return to fair value is -19.4%.
COSTAR GROUP, INC. (CSGP) has a net profit margin of 0.2%. This is a modest margin.
COSTAR GROUP, INC. (CSGP) generated $123 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
COSTAR GROUP, INC. (CSGP) has a debt-to-equity ratio of 0.14. This indicates a conservatively financed balance sheet.
COSTAR GROUP, INC. (CSGP) reported earnings per share (EPS) of $0.02 in its most recent fiscal year.
COSTAR GROUP, INC. (CSGP) has a return on equity (ROE) of 0.1%. This indicates moderate shareholder returns.
COSTAR GROUP, INC. (CSGP) has a 5-year average gross margin of 69.4%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 17 years of financial data for COSTAR GROUP, INC. (CSGP), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
COSTAR GROUP, INC. (CSGP) has a book value per share of $23.81, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects significant EBITDA growth and margin expansion through 2026 and beyond, with adjusted EBITDA margins projected to increase by approximately five percentage points each quarter throughout 2026 as marketing investments normalize and operational efficiencies from AI and personnel cost initiatives take hold. The residential segment is expected to reach profitability in Q2 2026 and eventually achieve 50% adjusted EBITDA margins, while the commercial segment continues to benefit from strong sales force productivity and international expansion, particularly with planned launches of CoStar and LoopNet in Australia and Europe. Management is prioritizing revenue growth through continued sales force expansion, new product launches including lease benchmarking and debt solutions capabilities, and cross-selling opportunities across the platform, with confidence in achieving low-to-mid-teens organic revenue growth targets embedded in the company's financial framework through 2030.
Based on recent SEC filings and earnings calls, COSTAR GROUP, INC. (CSGP) has provided the following forward guidance: Revenue: $3.78 billion–$3.82 billion (Full year 2026); Adjusted EBITDA: $780 million–$820 million (Full year 2026); Adjusted EPS: $1.32–$1.39 (Full year 2026).