Costar Group Inc (CSGP) Stock Analysis
Verdict: WATCH (do not buy)
Aggressive residential expansion is cannibalizing elite CRE margins while Google enters the fray — catch the falling knife only at $26.
Investment score: 42/100
Analysis as of
Is Costar Group Inc stock worth reviewing? The TradeMates thesis
CoStar's core CRE business remains a gold mine, but its multibillion-dollar bet on residential is facing a direct challenge from Google. Financials show a bridge to nowhere currently: 2025 estimates project a massive net income drop to $7M from $138M in 2024. Until margins bottom or the Google threat is quantified, the model expects further valuation compression.
7-factor investment score
- Valuation: 15/100 (weight 20%)
- Financial Health: 55/100 (weight 15%)
- Technical Momentum: 25/100 (weight 15%)
- Earnings Quality: 75/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 70/100 (weight 10%)
- Risk-Adjusted Return: 40/100 (weight 15%)
Costar Group Inc opportunities and risks
What speaks for CSGP
- Dominant CRE Moat
What speaks against CSGP
- Alphabet (Google) Competitive Entry
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| CSGP | 521.9x | 3.8x | 36.4x | 77.4% | 0.7% | 1.8% |
| CBRE | 30.4x | 0.9x | 17.1x | 35.0% | 3.1% | 2.3% |
| JLL | 15.8x | 0.5x | 12.2x | 89.4% | 3.3% | 6.9% |
| Z | 129.5x | 3.0x | 21.5x | 73.3% | 2.3% | 4.1% |
| COMP | 487.2x | 0.7x | n/a | 19.1% | 0.2% | 0.3% |
| OPEN | n/a | 0.9x | n/a | 7.9% | -35.2% | 29.4% |
| Peer median | 30.4x | 0.9x | 12.2x | 35.0% | 2.3% | 4.1% |
Frequently asked questions about Costar Group Inc (CSGP)
Is CSGP stock a good investment?
The TradeMates model rates Costar Group Inc as WATCH (do not buy) with an investment score of 42/100. CoStar's core CRE business remains a gold mine, but its multibillion-dollar bet on residential is facing a direct challenge from Google. Financials show a bridge to nowhere currently: 2025 estimates project a massive net income drop to $7M from $138M in 2024. Until margins bottom or the Google threat is quantified, the model expects further valuation compression. This is algorithmic model output, not personal investment advice.
Is CSGP stock a buy?
The TradeMates model verdict for CSGP is WATCH (do not buy) with an investment score of 42/100. Treat this as a model signal to review, not a personal buy recommendation.