CBRE Group misses earnings expectations for Q3

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Cbre Group Stock Fair Value – CBRE ($NYSE:CBRE) Group is a commercial real estate services and investment firm. This is a miss by $0.17. In a press release, CBRE said that its results were “solid” despite the earnings miss.

The company attributed the miss to “higher-than-expected costs associated with new business wins, investments in new service offerings and technology, and severance.” Looking ahead, CBRE said it is “well-positioned” to continue to grow and generate shareholder value. The company pointed to its strong balance sheet, robust pipeline of new business, and “favorable” market conditions.

Earnings

CBRE Group, Inc. is a holding company that operates as a real estate services and investment firm in the United States and internationally. The company operates through four segments: Americas, Europe, the Middle East and Africa , Asia Pacific, and Global Investment Management. Net income for the quarter was $2.0 billion, an increase of 11.1% from the prior year quarter.

CBRE Group’s total revenue has grown from $23.8 billion to $30.5 billion over the last three years. The company’s net income has also grown during this period, though at a slightly slower pace.

Share Price

The company’s stock fell 3.3% on Thursday after the earnings miss was announced. This marks a continuation of the negative media sentiment surrounding the company. The company attributed the revenue growth to its strong performance in its Americas and EMEA segments.

VI Analysis – Cbre Group Stock Fair Value Calculator

CBRE Group, Inc. is a holding company that operates through its subsidiaries. The company’s subsidiaries are engaged in real estate and investment management services. CBRE Group’s subsidiaries include CBRE, Inc., a real estate brokerage firm; Hana Asset Management, an investment management firm; and CBRE|ESI, a real estate consulting and valuation firm. The company’s fundamentals reflect its long term potential.

The intrinsic value of CBRE Group’s shares is around $83.9, calculated by VI Line. Now CBRE Group’s stock is traded at $70.3, a fair price undervalued by 16%.

VI 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

CBRE Group is a publicly traded real estate services company. The company’s stock is down today after it missed earnings expectations for the third quarter. Despite this, CBRE Group remains a large and diversified company with a long history of success. For investors, CBRE Group offers a unique opportunity to invest in the real estate market.

The company’s size and scope give it a significant competitive advantage, and its stock price is still relatively low compared to its peers. Given its strong track record, CBRE Group is worth considering for investors looking to add exposure to the real estate sector.