Should You Revisit CoStar Group After the 13% Drop This Month?

Simply Wall St.11-27

Wondering if CoStar Group is trading at a bargain or an overhyped premium? You are not alone—this stock is on many radars for just that reason. After a strong 2.7% uptick over the past week, CoStar’s ...

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After a strong 2.7% uptick over the past week, CoStar’s ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/real-estate-management-and-development/nasdaq-csgp/costar-group/news/should-you-revisit-costar-group-after-the-13-drop-this-month\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Should You Revisit CoStar Group After the 13% Drop This Month?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nShould You Revisit CoStar Group After the 13% Drop This Month?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-27 19:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/real-estate-management-and-development/nasdaq-csgp/costar-group/news/should-you-revisit-costar-group-after-the-13-drop-this-month><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Wondering if CoStar Group is trading at a bargain or an overhyped premium? You are not alone—this stock is on many radars for just that reason. After a strong 2.7% uptick over the past week, CoStar’s ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/real-estate-management-and-development/nasdaq-csgp/costar-group/news/should-you-revisit-costar-group-after-the-13-drop-this-month\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4585","symbol_name":"ETF&股票定投概念","start_time":0,"source_url":"https://simplywall.st/stocks/us/real-estate-management-and-development/nasdaq-csgp/costar-group/news/should-you-revisit-costar-group-after-the-13-drop-this-month","article_id":"2586228750","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9612012-choice1-main-header/1585186781062"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/real-estate-management-and-development/nasdaq-csgp/costar-group/news/should-you-revisit-costar-group-after-the-13-drop-this-month","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2586228750","pubTimestamp":1764243314,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Wondering if CoStar Group is trading at a bargain or an overhyped premium? You are not alone—this stock is on many radars for just that reason.\nAfter a strong 2.7% uptick over the past week, CoStar’s momentum looks different when you zoom out. The stock is down 13.2% this month and still in the red at -17.3% over the last year.\nRecent headlines reflect shifting sentiment, with sector trends and macroeconomic updates spurring renewed interest from investors. 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You are not alone—this stock is on many radars for just that reason. After a strong 2.7% uptick over the past week, CoStar’s momentum looks different when you zoom out. The stock is down 13.2% this month and still in the red at -17.3% over the last year. Recent headlines reflect shifting sentiment, with sector trends and macroeconomic updates spurring renewed interest from investors. These news stories have focused on evolving real estate technology demand and strategic moves by competitors, both of which play a role in the current valuation debate for CoStar. On our valuation checks, CoStar Group scores just 2 out of 6. This raises some real questions about its relative value, depending on the lens you use. Next, let’s dive into how different valuation approaches stack up, and at the end of this article you will find a new way to cut through the noise.  CoStar Group scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. AdvertisementApproach 1: CoStar Group Discounted Cash Flow (DCF) Analysis The Discounted Cash Flow (DCF) model estimates a company’s intrinsic value by projecting its future cash flows and discounting them back to today’s value. This process helps gauge what those cash flows are really worth in present terms, providing a grounded view of what the stock should be valued at based on its fundamentals. For CoStar Group, the current Free Cash Flow is -$60.2 Million, marking a challenging starting point. However, analysts expect a significant turnaround, projecting Free Cash Flow to steadily rise over the next decade. By 2028, the forecasted Free Cash Flow is $1.14 Billion, and by 2035, Simply Wall St’s model extrapolates this figure to over $2.37 Billion. It is worth noting that while analyst data covers the next five years, the estimates after that are model-driven extrapolations. Using this 2 Stage Free Cash Flow to Equity model, the estimated intrinsic fair value for CoStar Group lands at $67.87 per share. At current prices, this means the stock is trading at about a 0.1% discount to its calculated value. In other words, its valuation is lined up almost exactly with model-based fundamentals. Result: ABOUT RIGHT CoStar Group is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. CSGP Discounted Cash Flow as at Nov 2025 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for CoStar Group. Approach 2: CoStar Group Price vs Sales (P/S) Ratio Analysis The Price-to-Sales (P/S) ratio is often considered a suitable valuation metric for companies like CoStar Group, particularly when profits are slim or volatile and revenue growth remains robust. This ratio provides a clearer snapshot of a company’s valuation by removing the impact of accounting choices that affect earnings and focusing directly on sales performance. Growth expectations and risk profiles significantly influence what constitutes a fair P/S ratio. If investors expect stronger future growth or lower risk, they will generally assign a higher multiple. In contrast, slower growth or higher risk can justify a lower ratio. This context is important because for high-growth real estate tech companies, a higher P/S ratio might be reasonable compared to mature players in the industry. Currently, CoStar’s P/S ratio stands at 9.4x. In comparison, the industry average is 2.36x and the peer average is 2.57x, indicating a significant premium. Simply Wall St’s proprietary Fair Ratio for CoStar is 5.0x, which incorporates industry and peer performance along with factors such as CoStar’s growth rates, profit margins, market capitalization, and risk profile. This provides a more tailored benchmark than a simple industry comparison and reflects a broader view of how the company could be valued today. Since CoStar’s actual P/S ratio of 9.4x is noticeably higher than its Fair Ratio of 5.0x, the stock appears overvalued based on this approach. Result: OVERVALUED NasdaqGS:CSGP PS Ratio as at Nov 2025 PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1432 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your CoStar Group Narrative Earlier we mentioned there is an even better way to understand valuation, so let's introduce you to Narratives. Simply Wall St’s unique solution empowers every investor to easily capture the story behind their numbers. A Narrative is more than a fair value estimate or a financial model; it is a clear, concise statement of your perspective on a company, linked directly to your forecasts for revenue, earnings, and margins, all backed by your reasoning and up-to-date assumptions. Narratives connect the dots between the company’s real-world story, what you believe about its future, and what you consider a fair price. That means you do not just look at numbers in isolation; you see how changing news or business trends ripple through your forecast and valuation. Narratives live on Simply Wall St’s Community page, where millions of investors update their views any time fresh information, like quarterly earnings or breaking news, comes out. This keeps your decision-making sharp and responsive in real time. How does this work in practice? One investor might see margin expansion and technology leadership driving a fair value for CoStar Group at $107. Another might focus on regulatory risks and rising costs, resulting in a much more cautious $60 fair value. By comparing your personal Narrative to the current share price, you can quickly decide if it is time to buy, hold, or sell, using a method that is transparent, dynamic, and truly yours. Do you think there's more to the story for CoStar Group? Head over to our Community to see what others are saying! NasdaqGS:CSGP Community Fair Values as at Nov 2025  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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