CSGP Stock Analysis — CoStar Group
Sector: Cloud Software
AI Verdict
CoStar trades at 18.6x next year's earnings with sky-high growth forecasts, so it's cheap for the growth you're getting if its data dominance translates to real profits, but the huge gap between trailing and forward P/E means execution risk is still front and center.
Competitive Moat
CoStar Group owns the dominant data and analytics platform for commercial real estate, creating high switching costs for brokers, investors, and property managers who rely on its proprietary listings and market intelligence. Its defensibility comes from a deep, exclusive dataset accumulated over decades, which competitors struggle to replicate.
Summary
A massive 881.9% forward EPS growth estimate and a sharp drop in P/E to 18.6x next year have put CoStar back on value screens despite a bruising 63.89% 1-year drawdown.
Where It Stands
The stock is down 63.89% in the past year, trades at 18.6x forward earnings (well below the 35x software sector median), and sits at a neutral RSI of 60.1.
Key Metrics
- RSI: 60.1 — Near Overbought
- Trailing P/E: 182.8x
- Forward P/E: 18.6x
- PEG Ratio: 0.21
- Earnings Growth: +8.8%
- Revenue Growth: +0.2%
- Market Cap: $13.1B
- 1-Year Return: -63.89%
- 52-Week High: $91.89
- 52-Week Low: $25.89
Analyst Consensus
16 Buy · 11 Hold · 1 Sell (28 analysts)
Bull Case
With analysts forecasting 881.9% EPS growth and a forward P/E of 18.6x, you're paying a bargain price if CoStar's commercial real estate data moat delivers on these expectations.
Bear Case
If the 182.8x trailing P/E doesn't collapse to the 18.6x forward multiple, another round of disappointment could drive the stock even lower from its already bruised base.
Catalyst to Watch
Watch for the next quarterly earnings — if actual EPS ramps anywhere near the 881.9% forecast, the valuation reset could stick.