CoStar Group provides information, analytics, and online marketplaces services to the commercial real estate industry in the United States, Canada, the United Kingdom, and France. The company was founded in 1987 and is based in Washington, the District of Columbia.
CSGP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Costar Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Costar Group Inc ranked in the 21th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 71%. In terms of the factors that were most noteworthy in this DCF analysis for CSGP, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 97. Notably, its equity weight is greater than 96.03% of US equities in the Real Estate sector yielding a positive free cash flow.
The business' balance sheet reveals debt to be 3% of the company's capital (with equity being the remaining amount). Approximately merely 12.03% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
CSGP'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 46.66% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DOC, ALX, CLNC, WPC, and RPAI can be thought of as valuation peers to CSGP, in the sense that they are in the Real Estate sector and have a similar price forecast based on DCF valuation.
CoStar Group, Inc. (CSGP) is the self-proclaimed “number one provider of information, analytics and online marketplaces to the commercial real estate industry in the United States and the United Kingdom.” Indeed, it has a leading commercial real estate database, research department and operates several online marketplaces for commercial real estate...
CoStar Group (CSGP) put together a solid quarter in a real estate environment that has not been this beaten down since the Great Recession. Shares of CSGP provide a creative and attractive countercyclical addition to any REIT portfolio. Costar's sustainable subscription revenue model and a sizable war chest for acquisitions...