CoStar Group (CSGP)
Real Estate · $11.6B market cap · SEC CIK 0001057352
fundamentals score out of 100
Next reports on Oct 26, 2026, with analysts expecting $0.34 in earnings per share.
The case for CSGP
- Revenue up 22.0% on the year.
- Holds more cash ($1.6B) than long-term debt ($993M).
- Has compounded revenue at 14.4% a year over five years.
- Gross margin of 79% absorbs cost shocks.
- Moves less than the market (beta 0.80).
- Current assets cover the near-term bills 2.2 times over.
The case against
- Very expensive at 157.7× earnings. Years of growth are already in the price.
- Earnings per share down 30.5%.
- Down 66.7% over the past year.
- Return on equity of only 1%.
- Net margin of 2.1% leaves very little room for error.
- Near the bottom of its 52-week range, 68% below the high. Falling prices usually have a reason; find it first.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Real Estate companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 29 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 51 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 28 |
| Momentumhow the price has behaved lately | 16 |
| Stabilityhow violently it moves, what it owes and what it pays you | 44 |
- Each factor except momentum is half fixed thresholds, half rank among the 31 Real Estate companies.
Key numbers
| Price / earnings | 157.7× |
|---|---|
| Price / book | 1.46× |
| Price / sales | 3.3× |
| Revenue growth (YoY) | +22.0% |
| EPS growth (YoY) | -30.5% |
| Gross margin | 79% |
| Operating margin | 2% |
| Net margin | 2% |
| Return on equity | 1% |
| Debt / equity | 0.13× |
| Current ratio | 2.21 |
| Dividend yield | none |
| Beta | 0.80 |
| 52-week range | $25.89 – $89.80 |
| Position in that range | 5% of the way up |
| 3-month return | -3.6% |
| 1-year return | -66.7% |
Five years of financials, as filed
Pulled from CoStar Group's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $3.2B | $2.7B | $2.5B | $2.2B | $1.9B |
| Gross profit | $2.6B | $2.2B | $2.0B | $1.8B | $1.6B |
| Operating income | -$72.0M | $5.0M | $282M | $451M | $432M |
| Net income | $6.5M | $139M | $375M | $370M | $293M |
| Operating cash flow | $430M | $393M | $490M | $479M | $470M |
| Capital expenditure | $307M | $579M | $118M | $35.2M | $124M |
| Total assets | $10.5B | $9.3B | $8.9B | $8.4B | $7.3B |
| Total liabilities | $2.2B | $1.7B | $1.6B | $1.5B | $1.5B |
| Shareholder equity | $8.3B | $7.6B | $7.3B | $6.9B | $5.7B |
| Cash | $1.6B | $4.7B | $5.2B | $5.0B | $3.8B |
| Long-term debt | $993M | $992M | $991M | $989M | $988M |
| Free cash flow | $123M | -$186M | $372M | $444M | $346M |
| Gross margin | 78.9% | 79.6% | 80.0% | 81.0% | 81.6% |
| Operating margin | -2.2% | 0.2% | 11.5% | 20.7% | 22.2% |
| Net margin | 0.2% | 5.1% | 15.3% | 16.9% | 15.1% |
| Diluted shares | 421M | 408M | 407M | 398M | 394M |
Share count is up 6.7% over 4 years. Mild issuance.
What CoStar Group says it does
" in this Report. Non-GAAP Financial Measures We prepare and publicly release quarterly unaudited financial statements prepared in accordance with GAAP. We also disclose and discuss certain non-GAAP financial measures in our public releases, investor conference calls, and filings with the SEC. The non-GAAP financial measures that we may disclose include EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted EPS. EBITDA is our net income (loss) before interest income or expense, net, other expense or income, net, loss on debt extinguishment, income taxes, depreciation and amortization. We typically disclose EBITDA on a consolidated and an operating segment basis in our earnings releases, investor conference calls, and filings with the SEC. Adjusted EBITDA is different from EBITDA because we further adjust EBITDA for stock-based compensation expense, acquisition- and integration-related costs, restructuring…
Risk factors CSGP lists in its 10-K
- Risks related to our data, intellectual property and listings
- Risks related to our international operations
- Risks related to regulatory compliance and legal matters
- Our operating results and revenue are subject to fluctuations, and our quarterly financial results may be subject to market cyclicality, each of which could negatively affect our stock price
- Global economic uncertainties and downturns or a downturn or consolidation in the real estate industry may decrease customer demand for our services and adversely affect our business and results of operations
- If we are unable to hire qualified persons for, or retain and continue to develop our sales force, or if our sales force is unproductive, our revenue could be adversely affected
- Our business depends on retaining and attracting highly capable management and operating personnel
- Our internal and external investments may place downward pressure on our operating margins
- Introducing new products may be difficult and expensive. If we are unable to do so successfully, our brands may be adversely affected, and we may not be able to maintain or grow our current revenue and profit levels
- We may be unable to increase awareness of our brands, including CoStar, LoopNet, Matterport, BizBuySell, STR, Apartments.com, Homes.com, Land.com, OnTheMarket, and Domain which could adversely affect our business
- If real estate professionals or other advertisers reduce or cancel their advertising spending with us and we are unable to attract new advertisers, our operating results would be harmed
- If we are not able to successfully identify, finance, integrate, and/or manage costs related to acquisitions, our business operations and financial position could be adversely affected
- We may not be able to complete certain strategic transactions if a proposed transaction is subject to review or approval by regulatory authorities pursuant to applicable laws or regulations
- We may be unable to realize the benefits of the acquisition of either Matterport or Domain, which could have an adverse effect on us