Assessing CoStar Group (CSGP) Valuation After Third Point’s Activist Campaign

Simply Wall St.01-28

Third Point has launched an activist campaign at CoStar Group (CSGP), accusing leadership of poor capital allocation, weak oversight, and residential missteps, while arguing that the core commercial ...

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This suggests that longer term...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","BK4079":"房地产服务","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","BK4588":"碎股","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD","BK4548":"巴美列捷福持仓","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","LU0672654240.SGD":"FTIF - Franklin US Opportunities A Acc SGD-H1","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","LU0345774631.USD":"NINETY ONE GSF AMERICAN FRANCHISE \"A\" (USD) INC","LU1267930730.SGD":"富兰克林美国机遇基金AS Acc SGD (CPF)","LU0109391861.USD":"富兰克林美国机遇基金A Acc","CSGP":"科斯塔","LU0708995401.HKD":"FRANKLIN U.S. OPPORTUNITIES \"A\" (HKD) ACC","LU0823421333.USD":"BNP PARIBAS DISRUPTIVE TECHNOLOGY \"C\" (USD) ACC","BK4585":"ETF&股票定投概念","LU0390134368.USD":"FRANKLIN GLOBAL GROWTH \"A\" (USD) ACC","BK4123":"调查和咨询服务","LU0154245756.USD":"BNP PARIBAS US MID CAP \"C\" (USD) ACC","LU0823421416.USD":"BNP PARIBAS DISRUPTIVE TECHNOLOGY \"C\" (USD) INC","LU0345774391.USD":"NINETY ONE GSF AMERICAN FRANCHISE \"A\" (USD) ACC","LU0154245673.USD":"BNP PARIBAS US MID CAP \"C\" (USD) INC"},"translate_title":"Third Point的激进活动后评估CoStar Group(CSGP)的估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CSGP":1.5},"content_text":"Third Point has launched an activist campaign at CoStar Group (CSGP), accusing leadership of poor capital allocation, weak oversight, and residential missteps, while arguing that the core commercial real estate business remains a valuable but underutilized asset. See our latest analysis for CoStar Group. At a share price of US$65.81, CoStar Group has a 90 day share price return of a 15.88% decline and a 1 year total shareholder return of a 13.91% decline. This suggests that longer term momentum has faded even as the recent activist letter and earlier residential milestones keep the story in focus for investors assessing risk and potential re-rating. If you are weighing what else could be moving on the tech side of real estate data, it may be worth scanning high growth tech and AI stocks as a next step. So with shares down over the past year even as analysts point to higher price targets and an activist is pushing for change, is CoStar Group trading at a discount, or is the market already pricing in future growth? AdvertisementMost Popular Narrative: 18.5% Undervalued CoStar Group's most followed narrative points to a fair value of about $80.78 per share versus the last close of $65.81. This frames the activist debate around whether that gap can close.  Continuous digitalization and demand for high quality, data driven real estate platforms are driving significant user growth, engagement, and record net new bookings across CoStar's core and expansion businesses, supporting ongoing double digit revenue growth and higher recurring earnings.  Read the complete narrative. Want to see what justifies that higher price tag? The narrative leans on rapid earnings expansion, richer margins, and a premium future multiple more often reserved for top tier growth names. Result: Fair Value of $80.78 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, that upside case could unravel if Homes.com spending keeps profitability under pressure, or if commercial real estate weakness lingers longer than analysts currently build into their models. Find out about the key risks to this CoStar Group narrative. Another View: Multiples Point To A Richer Price Tag That 18.5% “undervalued” fair value sits beside a much tougher read when you look at simple market multiples. CoStar trades on a P/S of 9.1x, compared with 2.5x for peers and 2.2x for the broader US Real Estate industry, while the fair ratio sits at 5.6x instead. In plain terms, the market is already paying a far higher P/S than both peers and that fair ratio. This suggests less room for error if the bullish growth and margin story stumbles. Which signal do you put more weight on? See what the numbers say about this price — find out in our valuation breakdown. NasdaqGS:CSGP P/S Ratio as at Jan 2026 Build Your Own CoStar Group Narrative If you see the numbers differently or want to pressure test these assumptions against your own view, you can build a custom thesis in minutes with Do it your way. A great starting point for your CoStar Group research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision. Looking for more investment ideas? If CoStar has caught your attention, do not stop here. Broaden your watchlist with other focused ideas that could suit your style and risk tolerance.  Kickstart a watchlist of potential high flyers by scanning these 3512 penny stocks with strong financials, which already show stronger financials than many expect at this price range. Target future facing themes with these 24 AI penny stocks, which sit at the crossroads of artificial intelligence and fast moving growth stories. Hunt for price gaps between expectations and reality by reviewing these 884 undervalued stocks based on cash flows, where cash flow based models suggest value that the market may be missing.   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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