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:
Below please find a table outlining a discounted cash flow forecast for CBRE, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Cbre Group Inc ranked in the 57th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 64.83%. 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 8%; for context, that number is higher than only 16.45% 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 16.45% 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 just 10.76% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Cbre Group Inc? See EQR, ALX, WSR, CIGI, and RLJ.
Introduction CBRE Group (CBRE) is the world's largest real estate services and investment firm by revenue. The company has leading market positions within leasing, property sales, occupier outsourcing, and valuation services. CBRE Group provides its services to real estate occupiers and investors across the globe. The company works in three...
Andrew Cournoyer on Seeking Alpha | October 2, 2020
Hang Lung Properties, chaired by billionaire developer Ronnie Chan Chi-chung, has picked up a multibillion-dollar property project owned by the US government in Hong Kong for a discount to market valuations, just as US-China relations have deteriorated to their worst in decades.Hang Lung won a closed tender for six multistorey mansions at 37 Shouson Hill Road for HK$2.56 billion (US$330 million), according to an announcement by CBRE Group in Los Angeles, which was hired by the US State…