Cbre Group Stock Intrinsic Value – CBRE Group Cl A Stock Falls, Underperforms Market in 2023
March 9, 2023
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On Wednesday, CBRE ($NYSE:CBRE) Group Inc. Cl A stock declined, not keeping up with the market. This marks a stark contrast from the company’s performance in 2023, which saw it outperform the market, reaching record highs and generating positive returns for investors. Analysts attributed the stock’s decline to a number of factors, including weak earnings results, a decrease in the demand for real estate services, and concerns surrounding the economic outlook.
Additionally, the company has been hit by higher costs due to the ongoing pandemic and the resulting disruption of global operations. These factors, when taken together, have put a damper on the company’s performance and caused its stock to underperform the market. Investors are watching to see if CBRE Group Inc. Cl A can continue to rebound in the coming months and regain its former levels of success.
Share Price
On Thursday, CBRE Group Inc. Cl A stock opened at $83.6 and closed at $84.2, down by 0.2% from the prior closing price of 84.4. Despite closing slightly up from the opening, CBRE Group Inc.’s stock still ended the day down on the day. Investors seemed to be cautious about CBRE Group Inc.’s performance for the year 2023 and were taking a wait-and-see attitude towards the stock. While the overall market was up, CBRE Group Inc.’s stock failed to witness any growth which could be due to a number of factors such as investor sentiment, quarterly performance of the company, or other external factors. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cbre Group. More…
| Total Revenues | Net Income | Net Margin |
| 30.83k | 1.41k | 4.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cbre Group. More…
| Operations | Investing | Financing |
| 1.63k | -832.46 | -1.77k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cbre Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 20.51k | 11.91k | 25.03 |
Key Ratios Snapshot
Some of the financial key ratios for Cbre Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.9% | -0.1% | 5.6% |
| FCF Margin | ROE | ROA |
| 4.4% | 13.7% | 5.3% |
Analysis – Cbre Group Stock Intrinsic Value
At GoodWhale, we have conducted an analysis of CBRE Group‘s financials, and have determined the fair value of their shares to be around $90.7. This figure was calculated using our proprietary Valuation Line, which takes into account a variety of metrics such as balance sheet analysis and industry trends. Currently, CBRE Group stock is trading at $84.2, which places it at a 7.2% discount to its fair value. We believe that this is a great opportunity for investors who are looking to purchase the stock on the market and capitalize on the undervalued price. 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
Investment analysts have noted that CBRE Group Inc. Cl A stock has underperformed the market in 2023. Analysts attribute this decline to weaker than expected results from recent reports, which have impacted the stock price. Analysis suggests that this disparity may indicate that CBRE Group Inc. is currently carrying more debt than other similar companies in the same industry. As such, further research into the company’s financials is recommended for investors interested in making an informed decision on the stock.
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