CoStar Group, Inc. CSGP
CoStar Group's operational inflection is becoming credible — Q2 2026 operating income of $76M marks a sharp improvement from the -$27.2M operating loss in Q2 2025, and the company has now beaten EPS estimates in eight consecutive quarters, most recently delivering $0.32 versus the $0.2858 consensus. Revenue growth remains robust at 18.4% YoY in Q2 2026, and CEO Andrew Florance's $2.49M open-market purchase of 83,300 shares at $29.89 on August 4 signals confidence from the top.
However, the stock trades at 174x earnings versus CBRE's 33x, the 200-day moving average sits at $44.28 — well above the $31.98 close — and FY2025 operating margin remains negative at -2.2%, meaning the market is pricing in a recovery that is still in early innings. Hold pending evidence that operating leverage can sustainably compound.
What could go wrong
- Extreme valuation premium. P/E of 174x is 429% above the peer median of 33x; any deceleration in revenue growth or margin recovery could trigger a sharp de-rating.
- Gross margin compression. Gross margin declined from 80.0% in FY2023 to 75.2% in FY2025, indicating that marketplace expansion is diluting the core data/analytics economics.
- Stock below 200-day MA. Last close of $31.98 is 28% below the 200-day moving average of $44.28, signaling a downtrend that has not yet reversed despite recent stabilization above the 50-day MA of $30.19.
- Acquisition integration risk. The $800M cash acquisition of Zonda completed August 2026 adds integration risk and capital pressure on top of already elevated debt of $1.14B as of FY2025.
What would change my mind
Where this comes from: quarterly_results · earnings_surprises · quarterly_results · insider transactions. Orin's read on CSGP; not advice.
Twelve months actual closes to 2026-09-23 · actual filings
50-day average 200-day average · volume below
On file
All CSGP filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Vanguard Portfolio Management | $1.1B | 0.0% of fund |
| Vanguard Capital Management | $755.7M | 0.0% of fund |
| Bamco /Ny/ | $612.5M | 0.9% of fund |
| State Street | $521.4M | 0.0% of fund |
| Geode Capital Management | $343.3M | 0.0% of fund |
| Aqr Capital Management | $239.2M | 0.1% of fund |
93 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 79 Form 4 filings, net −$151K. Of the 50 on hand, 7 were open-market purchases and 2 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about CSGP
Orin answers questions about CSGP from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 153.8× | — | 56.8× |
| EV/EBITDA | 27.1× | 80.3× | — |
| P/S | 3.22× | 14.03× | — |
| P/B | 1.4× | 4.5× | — |
Its P/E sits 60th percentile of its own last 5 years (−0.48σ from its own mean).
45.1%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.0B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$36
$26 – $44 · +29% against today's price
- 16 buy or overweight
- 9 hold
- 2 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| CSGPCoStar Group, Inc. | $11B | 153.8× | 27.1× | 76.5% | 2.1% | 1% |
| CBRECBRE Group, Inc. | $39B | 31.1× | 17.9× | 17.7% | 3.0% | 15% |
The median is of the 1 peers listed above and nothing else — check it against the column. This company trades 395.3% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Discounted cash flow
| Model | Fair value | Against | Computed |
|---|---|---|---|
| Standard DCF | $16 | $34.62 · −54% | 2026-06-10 |
| Levered DCF | $40 | $34.62 · +14% | 2026-06-10 |
The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.