Nasdaq · Services-Business Services, NEC
Quote as of Oct 9, 2:31 PM ET · delayed
Fairly Valued. Our fair value estimate is USD 25.97 against a price of USD 29.69, -13% implied downside. Reasoning and scenarios are in CoStar stock: strong Q2, but today’s small move has no clear cause.
CoStar stock is up 0.8% at $28.09, but the available company filing does not identify a new catalyst for today’s move. The latest quarter showed a return to operating profit; valuation still asks investors to pay for a recovery that has not yet fully arrived.
StockLarge CapReal EstateNo earnings notes for this company yet.
Revenue (USD, billions)
Margins (%)
Free cash flow (USD, billions)
Estimated ROIC (%)
Net debt (USD, billions)
Monetary values are in USD; revenue, FCF and net debt are in billions; EPS is per share. Missing values appear as gaps and “Not available.” Source: SEC EDGAR XBRL filings, latest restated values; quarterly cash flow derived from year-to-date figures; Q4 = fiscal year minus nine months. ROIC is NOPAT (21% tax) over debt plus equity.
| Period | Revenue | Gross % | Op % | FCF | EPS | ROIC % | Net debt |
|---|---|---|---|---|---|---|---|
| FY2016 | 0.84 | 79.3 | 17.3 | Not available | 2.62 | 5.75 | -0.23 |
| FY2017 | 0.97 | 77.2 | 18.0 | Not available | 3.66 | 5.18 | -1.21 |
| FY2018 | 1.19 | 77.3 | 22.9 | Not available | 6.54 | 7.15 | -1.10 |
| FY2019 | 1.40 | 79.3 | 26.0 | 0.46 | 0.86 | 8.43 | -1.07 |
| FY2020 | 1.66 | 81.4 | 17.4 | 0.49 | 0.59 | 3.58 | -2.69 |
| FY2021 | 1.94 | 81.6 | 22.2 | 0.35 | 0.74 | 5.09 | -2.80 |
| FY2022 | 2.18 | 81.0 | 20.7 | 0.44 | 0.93 | 4.53 | -4.00 |
| FY2023 | 2.46 | 80.0 | 11.5 | 0.37 | 0.92 | 2.67 | -4.20 |
| FY2024 | 2.74 | 79.6 | 0.18 | -0.19 | 0.34 | 0.05 | -3.68 |
| FY2025 | 3.25 | 78.9 | -2.22 | 0.12 | 0.02 | -0.67 | -1.49 |
Current price
USD 29.69
Fair value estimate
USD 25.97
Implied upside
-12.5%
Bear
25%USD 15
Direct equity valuation using assumed 20× trailing free cash flow.
The business does not convert continued investment and revenue growth into sufficiently durable cash generation, leaving little support for a premium cash-flow multiple.
Base
50%USD 26
Direct equity valuation using assumed 35× trailing free cash flow.
CoStar sustains a growing information business, but the present cash-flow base and uneven operating returns limit the value justified today.
Bull
25%USD 37
Direct equity valuation using assumed 50× trailing free cash flow.
Investors assign a high multiple to CoStar’s cash flows because the company demonstrates that product investment can support lasting growth and stronger profitability.
No news items logged for this company yet.