Cbre Group Intrinsic Value – CBRE Group Reports Total Revenue of USD 7719.9 Million in Q2 FY2023, Down 0.7% Year-on-Year

🌥️Earnings Overview

CBRE GROUP ($NYSE:CBRE) released their second quarter FY2023 earnings results on June 30 2023, showing total revenue of USD 7719.9 million, a decrease of 0.7% compared to the same quarter in FY2022. Net income for the quarter was USD 201.4 million, down 58.7% from the previous year.

Analysis – Cbre Group Intrinsic Value

GoodWhale has conducted an extensive analysis of CBRE GROUP‘s financials and we believe that the intrinsic value of their stock is approximately $93.1, calculated by our proprietary Valuation Line. This shows that CBRE GROUP’s stock is currently undervalued by 10.6%, as it is currently trading at $83.2. We believe that this is a good opportunity for investors to buy CBRE GROUP shares at a fair price. Our analysis indicates that there is potential upside to these shares and that they should outperform the market over the long term. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Cbre Group. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Cbre Group. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Cbre Group. More…

Key Ratios Snapshot

Some of the financial key ratios for Cbre Group are shown below. More…

Peers

CBRE Group Inc is the world’s largest commercial real estate services firm, with 2018 revenue of $23.9 billion and more than 90,000 employees in over 700 offices worldwide. The company provides a broad range of services to occupiers and investors, including leasing, property and facilities management, investment sales and capital markets, valuation, consulting, research and appraisal, and mortgage banking. CBRE’s competitors in the commercial real estate services industry include Jones Lang LaSalle Inc, Newmark Group Inc, and Cushman & Wakefield PLC. These companies are all large, global firms with a broad range of services and a significant presence in the commercial real estate market.

– Jones Lang LaSalle Inc ($NYSE:JLL)

JLL is a professional services and investment management company specializing in real estate. It has a market cap of $7.43B and a ROE of 13.87%. The company has over 230 offices in 80 countries and offers a variety of services such as property management, facilities management, project and development management, lease administration, and investment management.

– Newmark Group Inc ($NASDAQ:NMRK)

The Newmark Group is a publicly traded company with a market capitalization of 1.51 billion as of 2022. The company has a return on equity of 35.51%. The Newmark Group is a provider of commercial real estate services in the United States. The company offers a range of services, including leasing, property and facilities management, lending, valuation, consulting, and capital markets services.

– Cushman & Wakefield PLC ($NYSE:CWK)

Cushman & Wakefield PLC is a commercial real estate services company. It has a market cap of 2.5B as of 2022 and a Return on Equity of 27.74%. The company provides services such as property management, leasing, capital markets, valuation, and other advisory services.

Summary

Investors in CBRE Group saw a drop in stock price on June 30th as the company reported its second quarter earnings results for FY2023. Total revenue was reported at USD 7719.9 million, representing a 0.7% drop compared to the same quarter in the previous year. Net income decreased significantly, down 58.7%, to USD 201.4 million.

While these numbers do not paint a positive picture of the company’s performance, investors should take into account the current global economic conditions which may have had a significant impact on CBRE Group’s results. With that in mind, investors should monitor the company’s progress in the coming quarters to get a better gauge of its future prospects.