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: $44.22 DETAILS
HIGH: $67.00
LOW: $26.00
MEDIAN: $44.00
CONSENSUS: $44.22
UPSIDE: 60.45%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Distressed or Transitioning 75% confidence

Primary model: Current FCF × Depressed Multiple

Valuation Signal Overvalued Strong
Trading 119.0% above fair value
Current Price $27.56
Bear Case $11.35 58.8% downside ($11.35 - $27.56) / $27.56 = -58.8% FCF continues to decline, 4x multiple
Fair Value $12.58 54.3% downside ($12.58 - $27.56) / $27.56 = -54.3% Current FCF stabilizes, 6x multiple
Bull Case $13.88 49.6% downside ($13.88 - $27.56) / $27.56 = -49.6% 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 260.1x

Plain-Language Summary

Our base-case estimate uses Current FCF × Depressed Multiple. We then blend that result with the average analyst price target of $44.22 from 25 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $12.58 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 $44.22 (from 25 analysts). Our estimate is 95% 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