Costar Group Stock Fair Value – CoStar Group Posts Record Quarterly Results, Raises Outlook for Future Profitability
April 26, 2023
Trending News ☀️
COSTAR ($NASDAQ:CSGP): The CoStar Group, Inc. is a leading provider of commercial real estate information, analytics and online marketplaces. Recently, the company has posted record quarterly results, exceeding expectations in both revenue and earnings per share. CoStar reported Non-GAAP earnings per share of $0.29, surpassing expectations by $0.04, as well as revenue of $584M, beating estimates by $4.64M.
Additionally, CoStar raised its outlook for future profitability. This impressive performance was primarily driven by robust growth in subscription services and the strength of the Marketplace businesses. The CoStar Group’s strong performance is an indication of the increasing demand for its services and products, which will likely continue to drive profitability in the coming quarters. With a strong financial position, the company is well-positioned to capitalize on growth opportunities and drive long-term value for shareholders.
Price History
On Tuesday, CoStar Group, a leading provider of commercial real estate information, analytics and online marketplaces, reported record quarterly results and raised its outlook for future profitability. Despite the strong results, CoStar Group’s stock opened at $69.8 and closed at $68.5, down 2.5% from its prior closing price of $70.3. This may be attributed to the investor’s cautious optimism surrounding the company’s long-term growth prospects. The company stated that it is continuing to invest in its core business, with plans to expand its portfolio through product and geographic expansion, acquisitions, and technological innovation.
Given its record quarterly performance and higher outlook for future profitability, CoStar Group is well-positioned to capitalize on opportunities in the commercial real estate industry over the long-term. The company is confident that its investments in technology and talent, combined with its strong market position and leadership team, should drive long-term revenue growth and profitability. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Costar Group. More…
| Total Revenues | Net Income | Net Margin |
| 2.18k | 369.45 | 16.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Costar Group. More…
| Operations | Investing | Financing |
| 478.62 | -69.06 | 733.98 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Costar Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.4k | 1.53k | 16.89 |
Key Ratios Snapshot
Some of the financial key ratios for Costar Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 16.0% | 7.4% | 20.7% |
| FCF Margin | ROE | ROA |
| 19.2% | 4.2% | 3.4% |
Analysis – Costar Group Stock Fair Value
At GoodWhale, we have conducted an analysis of COSTAR GROUP’s fundamentals to evaluate the worth of its stock. After extensive research and analysis, we have concluded that the intrinsic value of COSTAR GROUP shares is around $87.8, as calculated by our proprietary Valuation Line. This shows that the current market price of $68.5 is significantly undervalued by 21.9%. We believe that investors have the opportunity to acquire COSTAR GROUP shares at a discounted rate and benefit from potential appreciation in the shares. More…
Peers
CoStar Group Inc is a commercial real estate information and analytics company. Its competitors are Altus Group Ltd, Aroundtown SA, and Belpointe PREP LLC.
– Altus Group Ltd ($TSX:AIF)
Altus Group is a leading provider of independent advisory services, software and data solutions to the global commercial real estate industry. Our integrity, innovative technology and comprehensive data and analytics enable us to help our clients make informed decisions and drive business value. We have a deep understanding of the forces shaping the commercial real estate industry and a proven track record of helping our clients achieve their business objectives.
– Aroundtown SA ($LTS:0RUH)
The company’s market capitalization is $2.75 billion and its return on equity is 7.46%. The company is a real estate investment trust that owns, operates, and develops properties in Germany.
– Belpointe PREP LLC ($NYSEAM:OZ)
As of 2022, Belpointe PREP LLC has a market cap of 302.88M and a Return on Equity of -1.62%. The company is a provider of educational services. It offers a variety of services to its students, including academic advising, tutoring, and college counseling. Belpointe PREP LLC is committed to providing its students with the skills and knowledge necessary to succeed in their academic pursuits.
Summary
COSTAR GROUP reported Non-GAAP EPS of $0.29, beating the estimates by $0.04. Revenues of $584M beat the estimates by $4.64M. The company also raised its outlook for future performance. Investors appear to be looking favorably on the company as this report indicates strong performance despite the current economic climate.
The company appears to be well-positioned to continue its positive momentum in the near future. This should be a compelling investment opportunity for those interested in COSTAR GROUP.
