CBRE Group operates as a commercial real estate services and investment company worldwide. The company operates through Americas, Europe, Middle East and Africa, Asia Pacific, Global Investment Management, and Development Services segments. The company was founded in 1906 and is based in Los Angeles, California.
CBRE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Cbre Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Cbre Group Inc ranked in the 61th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 146.33% on a DCF basis. The most interesting components of our discounted cash flow analysis for Cbre Group Inc ended up being:
Cbre Group Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 24.24% of tickers in our DCF set.
CBRE's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than only 24.24% of tickers in our DCF set.
Relative to other stocks in its sector (Real Estate), Cbre Group Inc has a reliance on debt greater than only 11.13% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Real Estate that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CBRE, try PSB, PRSI, HST, HT, and WRI.