CoStar Group, Inc. (CSGP) AI Stock Analysis
CSGP AI stock analysis summary
AI ResearchCoStar Group, Inc. (NASDAQ: CSGP) is an information, analytics, and online marketplace provider for commercial and residential real estate. While revenue increased 18.7% in FY2025 to $3.25B, net income fell to $7.0M amid margin compression. The stock has dropped 56.5% over the past year, trading at a trailing P/E of 179.5x and a forward P/E of 18.3x.
- Market cap
- $13.09B
- Revenue (TTM)
- $3.56B
- P/E
- 179.5x fwd 18.3x
- 1Y return
- -56.5% S&P 500 16.8%
- Avg. target
- $37.40 15.8% vs last close
Bull case
- Quarterly revenue grew 18.4% year-over-year in the quarter ended June 30, 2026, outpacing the peer median quarterly growth of 4.9%.
- Forward P/E of 18.3x trades at a discount to the S&P 500 Real Estate peer median forward P/E of 30.4x.
- Balance sheet strength is supported by a net cash balance of $111.0M and a current ratio of 2.21.
Bear case
- Annual net income dropped from $374.7M in FY2023 to $7.0M in FY2025 as operating margin turned negative to -2.2%.
- CSGP stock has dropped 56.5% over the past year, compared to a 16.8% gain for the S&P 500.
- Trailing twelve-month return on equity sits low at 0.9%, accompanied by an elevated trailing P/E of 179.5x.
What CoStar does
CoStar Group, Inc. provides information, analytics, and online marketplace services for professionals across the commercial real estate, hospitality, residential, and related sectors globally. Its commercial offerings include CoStar Property, CoStar COMPS, CoStar Market Analytics, CoStar Tenant, and lease analysis tools such as Lease Comps and Analysis. It also provides CoStar Real Estate Manager for lease administration and accounting compliance. For residential and marketplace transactions, CoStar operates platforms including ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, LoopNet Premium Lister, and the online real estate auction platform Ten-X.
Growth and profitability
CoStar grew revenue from $1.94B in FY2021 to $3.25B in FY2025, reflecting a 5-year revenue CAGR of 14.4%. However, profitability contracted over this period, with operating margin declining from 22.2% in FY2021 to -2.2% in FY2025, and net income dropping from $292.6M to $7.0M. R&D expense increased from $201.0M in FY2021 to $406.0M in FY2025. In the latest quarter ended June 30, 2026, revenue increased 18.4% year-over-year, and quarterly earnings grew 1261.0%. TTM revenue stood at $3.56B with an operating margin of 8.2% and EPS of $0.18.
Balance sheet and cash flow
As of June 30, 2026, CoStar held $1.27B in cash and short-term investments against total debt of $1.16B, leaving a net cash position of $111.0M. The company maintains a current ratio of 2.21 and a debt-to-equity ratio of 0.15. In FY2025, operating cash flow was $430.0M, supporting capital expenditures of $389.0M and generating free cash flow of $41.0M. During FY2025, CoStar allocated $575.0M to share buybacks, while its share count grew 2.5% over 5 years.
Valuation and performance
CoStar carries a market capitalization of $13.09B and an enterprise value of $11.39B. Its trailing P/E of 179.5x trades well above the 30.3x median of its S&P 500 Real Estate peers, while its forward P/E of 18.3x sits below the peer median of 30.4x. CoStar's price-to-sales multiple of 3.7x compares to 7.1x for peers, and EV/EBITDA is 28.9x versus the peer median of 17.2x. Over the past year, CSGP fell 56.5%, lagging the S&P 500 (SPY) return of 16.8%.
What analysts expect
Wall Street analysts hold 9 Strong Buy, 3 Buy, 8 Hold, 0 Sell, and 1 Strong Sell ratings on CSGP. The mean price target of $37.40 implies upside of 15.8% from the last close of $32.31. For the fiscal year ending December 31, 2026, analysts estimate EPS of $1.36 on revenue of $3.79B. CoStar beat EPS estimates in each of the last 4 quarters, with its next earnings release scheduled for October 27, 2026.
Key risks and what to watch
- R&D expense grew from $201.0M in FY2021 to $406.0M in FY2025, putting downward pressure on operating profitability.
- Free cash flow has fluctuated significantly, shifting from -$245.3M in FY2024 to $41.0M in FY2025.
- The stock trades 15.5% below its 200-day moving average and remains down 51.9% year-to-date.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this CSGP AI stock analysis
This page is an AI-written research summary of CoStar Group, Inc. (CSGP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: CSGP income statement, CSGP balance sheet, CSGP key metrics, CSGP analyst forecast, CSGP chart. See the CSGP stock overview for the latest quote and news.
CSGP AI stock analysis FAQ
Does CoStar Group pay a dividend?
No, CoStar Group does not currently pay a dividend. The company directs its capital toward business investments, capital expenditures ($389.0M in FY2025), and share repurchases ($575.0M in FY2025).
What is CoStar Group's forward earnings outlook?
For the fiscal year ending December 31, 2026, analysts forecast full-year EPS of $1.36 (up 56.3%) and revenue of $3.79B. For the following fiscal year, 5 analysts project EPS of $1.77 on revenue of $4.21B.
How does CoStar Group's valuation compare to sector peers?
CoStar trades at a trailing P/E of 179.5x and an EV/EBITDA of 28.9x, both higher than the S&P 500 Real Estate medians of 30.3x and 17.2x. However, its forward P/E of 18.3x and price-to-sales ratio of 3.7x sit below peer medians of 30.4x and 7.1x.
When does CoStar Group report earnings next?
CoStar Group is scheduled to report earnings on October 27, 2026. The company has surpassed EPS estimates in each of its last 4 quarters.