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CoStar Group Inc (CSGP)

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Upturn Advisory Summary
12/24/2025: CSGP (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $91.94
1 Year Target Price $91.94
| 6 | Strong Buy |
| 6 | Buy |
| 3 | Hold |
| 0 | Sell |
| 1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -20.02% | Avg. Invested days 37 | Today’s Advisory PASS |
Upturn Star Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 28.35B USD | Price to earnings Ratio 1114.83 | 1Y Target Price 91.94 |
Price to earnings Ratio 1114.83 | 1Y Target Price 91.94 | ||
Volume (30-day avg) 16 | Beta 0.84 | 52 Weeks Range 62.00 - 97.43 | Updated Date 12/25/2025 |
52 Weeks Range 62.00 - 97.43 | Updated Date 12/25/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.06 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 0.66% | Operating Margin (TTM) -6.13% |
Management Effectiveness
Return on Assets (TTM) -0.4% | Return on Equity (TTM) 0.25% |
Valuation
Trailing PE 1114.83 | Forward PE 45.25 | Enterprise Value 27592206489 | Price to Sales(TTM) 9.28 |
Enterprise Value 27592206489 | Price to Sales(TTM) 9.28 | ||
Enterprise Value to Revenue 9.03 | Enterprise Value to EBITDA 196.81 | Shares Outstanding 423822791 | Shares Floating 418156280 |
Shares Outstanding 423822791 | Shares Floating 418156280 | ||
Percent Insiders 1.18 | Percent Institutions 104.03 |
Upturn AI SWOT
CoStar Group Inc

Company Overview
History and Background
CoStar Group Inc. was founded in 1987 by Andrew C. Florance and has since grown into a leading global provider of commercial real estate information, analytics, and online marketplaces. Key milestones include its IPO in 1998, significant acquisitions like LoopNet in 2009, and the expansion into residential real estate with Homes.com. The company has consistently focused on leveraging technology to aggregate vast amounts of data and provide valuable insights to real estate professionals.
Core Business Areas
- CoStar Suite: The flagship offering, providing comprehensive data, analytics, and software solutions for commercial real estate professionals. This includes property listings, transaction data, market trends, tenant information, and valuation tools.
- Apartments.com Network: A leading online marketplace for apartment rentals, including Apartments.com, ApartmentFinder.com, and Affordability.com. It connects renters with property managers and landlords.
- Homes.com: A rapidly growing online real estate marketplace focused on providing accurate and comprehensive information for residential property buyers, sellers, and agents. It aims to disrupt the residential real estate market.
- Ten-X: An online real estate marketplace facilitating the sale and disposition of commercial and residential properties through auctions and traditional listings.
- STR (Smith Travel Research): A leading provider of data benchmarking, analytics, and market insights for the global hospitality industry.
Leadership and Structure
CoStar Group is led by its founder and CEO, Andrew C. Florance. The company operates with a divisional structure, with each core business area managed by dedicated leadership teams. The organizational structure is designed to foster innovation and market responsiveness within each segment.
Top Products and Market Share
Key Offerings
- CoStar Property/Market Analytics: Provides detailed property information, market analytics, and comparable sales data for commercial real estate. Competitors include Moody's Analytics CRE, Real Capital Analytics (now MSCI Real Assets), and local brokerage research departments. Market share in commercial real estate data and analytics is significant, often considered the dominant player in its core segments.
- Apartments.com: A leading online multifamily rental platform. Its primary competitors include Zillow (including Trulia), Realtor.com, and local listing sites. Apartments.com is a significant player in the online multifamily advertising space.
- Homes.com: A comprehensive residential real estate marketplace. Competitors include Zillow Group (Zillow, Trulia), Realtor.com, and Redfin. Homes.com is aggressively positioning itself to gain market share through its 'Your Listing, Your Lead' model.
- STR: Provides performance data and analytics to the hotel industry. Competitors include CBRE Hotels, JLL Hotels & Hospitality, and various specialized hospitality data providers. STR is a recognized leader in hotel benchmarking.
Market Dynamics
Industry Overview
The commercial and residential real estate information and marketplaces industry is characterized by a high volume of data, increasing reliance on technology, and a shift towards online platforms. Digitization of real estate transactions and the demand for data-driven decision-making are key trends.
Positioning
CoStar Group is a dominant player in the commercial real estate information and analytics market. Its competitive advantages stem from its extensive proprietary database, sophisticated analytics capabilities, strong brand recognition, and integrated platform approach. In residential, Homes.com is aggressively challenging incumbents. Its ability to cross-sell services and leverage data across different real estate sectors is a key differentiator.
Total Addressable Market (TAM)
The TAM for real estate information, analytics, and marketplaces is vast and spans commercial, residential, and hospitality sectors globally. While specific TAM figures vary, it is estimated to be in the hundreds of billions of dollars. CoStar Group is well-positioned to capture a significant portion of this market through its diverse offerings and ongoing expansion.
Upturn SWOT Analysis
Strengths
- Extensive and proprietary real estate data coverage.
- Leading market position in commercial real estate information and analytics.
- Strong brand recognition and established customer base.
- Technological innovation and continuous development of analytics tools.
- Diversified revenue streams across multiple real estate segments.
- Aggressive growth strategy and successful integration of acquisitions.
Weaknesses
- High customer acquisition costs for new segments.
- Potential for disruption from new technologies or business models.
- Reliance on data accuracy and integrity.
- Integration challenges with newly acquired companies.
Opportunities
- Expansion into adjacent real estate markets and geographies.
- Leveraging AI and machine learning for advanced analytics.
- Growth of online marketplaces for both commercial and residential properties.
- Increasing demand for data and analytics in real estate decision-making.
- Further penetration into the residential real estate market.
- Cross-selling opportunities across its diverse product suite.
Threats
- Intensifying competition from established players and new entrants.
- Changes in real estate market conditions (e.g., economic downturns).
- Data security and privacy concerns.
- Regulatory changes impacting the real estate industry.
- Disruptive technologies that alter data aggregation and distribution methods.
Competitors and Market Share
Key Competitors
- Zillow Group, Inc. (Z)
- News Corp (Realtor.com) (NWSA)
- Redfin Corporation (RDFN)
- MSCI Inc. (MSCI)
Competitive Landscape
CoStar Group holds a dominant position in commercial real estate data and analytics but faces strong competition in residential marketplaces from Zillow Group and Realtor.com, which have extensive consumer reach. Its key advantage is its deep, proprietary data and sophisticated analytical tools, coupled with a highly recurring revenue model. In residential, its 'Your Listing, Your Lead' model is a differentiator aimed at agents.
Major Acquisitions
Homes.com (acquired the remaining stake in 2021, previously partially owned)
- Year: 2021
- Acquisition Price (USD millions):
- Strategic Rationale: To significantly expand its presence and disrupt the residential real estate marketplace, leveraging its data and technology expertise.
Ten-X
- Year: 2020
- Acquisition Price (USD millions): 100
- Strategic Rationale: To enhance its online transaction platform for commercial and residential properties, providing a comprehensive solution for property sales.
STR (Smith Travel Research)
- Year: 2019
- Acquisition Price (USD millions): 450
- Strategic Rationale: To establish a leading position in hospitality data and analytics, complementing its existing real estate data offerings.
LoopNet
- Year: 2009
- Acquisition Price (USD millions): 620
- Strategic Rationale: To significantly expand its online marketplace presence for commercial real estate listings, creating a dominant platform.
Growth Trajectory and Initiatives
Historical Growth: CoStar Group has a long history of consistent and robust growth, driven by organic expansion of its core businesses and strategic, accretive acquisitions. The company has successfully expanded its TAM by entering new real estate verticals and enhancing its service offerings.
Future Projections: Analyst estimates generally project continued strong revenue and earnings growth for CoStar Group, fueled by the ongoing digitization of real estate, expansion of its online marketplaces (especially Homes.com), and increased adoption of its data and analytics solutions. Growth in the multifamily and hospitality segments is also expected to contribute significantly.
Recent Initiatives: Recent strategic initiatives include the aggressive expansion and marketing of Homes.com to challenge established residential real estate portals, continued investment in technology and AI to enhance its data and analytics platforms, and the integration of recent acquisitions to broaden its service capabilities and market reach.
Summary
CoStar Group is a dominant force in commercial real estate data and analytics with a strong and growing presence in residential and hospitality markets. Its strengths lie in its vast proprietary data, technological innovation, and a recurring revenue model, driving consistent financial growth. While facing stiff competition in residential from Zillow, CoStar's strategic acquisitions and aggressive expansion, particularly with Homes.com, position it for continued success. The company needs to closely monitor technological disruptions and maintain its data integrity to sustain its market leadership.
Similar Stocks
Sources and Disclaimers
Data Sources:
- CoStar Group Inc. Investor Relations Filings (10-K, 10-Q)
- Financial Data Providers (e.g., Refinitiv, Bloomberg)
- Industry Analysis Reports
- Company Websites
Disclaimers:
This analysis is based on publicly available information and may not be exhaustive. Financial data is approximate and for illustrative purposes. Market share data is an estimation. Investors should conduct their own due diligence before making investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About CoStar Group Inc
Exchange NASDAQ | Headquaters Arlington, VA, United States | ||
IPO Launch date 1998-06-29 | President, Founder, CEO & Director Mr. Andrew C. Florance | ||
Sector Real Estate | Industry Real Estate Services | Full time employees 6593 | Website https://www.costargroup.com |
Full time employees 6593 | Website https://www.costargroup.com | ||
CoStar Group, Inc. provides information, analytics, and online marketplace services in the United States, Canada, Europe, the Asia Pacific, and Latin America. It offers CoStar Property that provides inventory of office, industrial, retail, multifamily, hospitality, and student housing properties and land; CoStar Leasing, a data on lease transactions and tools to manage user-entered lease data; CoStar Sales, a database of commercial real estate sales transactions; CoStar Owners provides detailed portfolio information; CoStar Markets to view and report on market and submarket trends; and CoStar Tenant that provides tenant information. The company also provides CoStar Benchmarking allows hotels to measure performance against competitors; CoStar Lender, a tool for lenders to manage loan portfolios and risk; and real estate and lease management technology solutions, such as lease administration, lease accounting, and abstraction services. In addition, it offers Apartamentos.com, an apartment marketing sites; LoopNet.com, a commercial property marketing sites; Homes.com, a homes for sale listings site; Ten-X, an online auction platform for commercial real estate; Land.com, a marketplace for rural land sales; and BizBuySell.com, a marketplace for operating businesses and franchises for sale. It serves sales, leasing, and mortgage brokers; property, real estate investment trust, insurance companies, and asset managers; and government agencies, property owners, mortgage-backed security issuers, appraisers, design and construction professionals, pension fund managers, real estate developers, reporters tenant vendors, bankers, building services vendors, mortgage bankers, communications providers, retailers, institutional advisors, hospitality owners, investors, and real estate agents. The company was founded in 1987 and is headquartered in Arlington, Virginia.

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