CSGP
CoStar Group, Inc.
$29.50
Stable Earnings Power
75%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 87.2% above fair value
You pay
$29.50
Bear
$12.61
Fair
$15.76
Bull
$18.91
Bear
$12.61
-57.3%
$0.74 × 17x P/E
Fair
$15.76
-46.6%
$0.74 × 21x P/E
Bull
$18.91
-35.9%
$0.74 × 26x P/E
Adjust Assumptions
21.3x
0.74$
Key Value Driver
Normalized P/E multiple (21x base case)
Implied Market Multiple
39.9x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (27 analysts)
$36.36
Divergence from AlphaVal
57%
Summary
Applying a 21x P/E to adjusted EPS of $0.74, the base-case value is $15.76 per share.
Warnings
The company's reported profits differ from official accounting profits by 4358%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $36.36 (from 27 analysts). Our estimate is 57% below the consensus -- consider that gap carefully.
This stock is 63% below its 52-week high, with weak or declining earnings. That combination often signals real trouble, even though the valuation below is based on other fundamentals.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples