CoStar Group, Inc. logo CSGP - CoStar Group, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 18
HOLD 5
SELL 2
STRONG
SELL
0
| PRICE TARGET: $51.89 DETAILS
HIGH: $73.00
LOW: $26.00
MEDIAN: $50.00
CONSENSUS: $51.89
UPSIDE: 82.78%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Distressed or Transitioning 75% confidence

Primary model: Current FCF × Depressed Multiple

Valuation Signal Overvalued Strong
Trading 95.8% above fair value
Current Price $28.39
Bear Case $13.08 53.9% downside ($13.08 - $28.39) / $28.39 = -53.9% FCF continues to decline, 4x multiple
Fair Value $14.50 48.9% downside ($14.50 - $28.39) / $28.39 = -48.9% Current FCF stabilizes, 6x multiple
Bull Case $16.00 43.7% downside ($16.00 - $28.39) / $28.39 = -43.7% Credible recovery, multiple re-rates to 8x

Adjust Assumptions

6.0x

Key Value Driver

Whether the core business model is intact or structurally impaired

Implied Market Multiple 268.4x

Plain-Language Summary

Our base-case estimate uses Current FCF × Depressed Multiple. We then blend that result with the average analyst price target of $51.89 from 25 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $14.50 per share.

Warnings

Don't assume past cash flow levels will return — the company's troubles may have permanently reduced its ability to generate profits.
A stock can look cheap on paper and still lose half its value if the underlying business is permanently damaged.
The wide range between our best and worst cases is intentional — pretending to know a precise value for a troubled company would be misleading.
Wall Street's average price target is $51.89 (from 25 analysts). Our estimate is 96% below the consensus -- consider that gap carefully.

Key Risks

  • Bullish DCF projections are fundamentally unknowable for distressed companies
  • M&A speculation can floor the stock above intrinsic value temporarily
  • Management credibility is a key input — new CEO expands the bull case