CoStar Group, Inc. (CSGP) Stock Analysis
Score DGrowth · Grade C · Bearish
$33.74
$9.56
-71.7%
3/10
C
Growth
Investment Thesis
Low quantitative score: Low quality, stretched valuation, or poor risk/reward.
For New Investors
Quantitative score: weak
For Current Holders
Quantitative score: low
Buy if
- Price drops 15-20% (improves asymmetry)
- Bull scenario catalysts materialize
- Market-wide correction creates opportunity
Sell if
- Bear scenario triggers occur
- Quality metrics deteriorate (ROIC declining)
- Better alternatives emerge
Valuation
REIT Fair Value: $9.56 (-71.7%). FFO/share: $0.60, P/FFO: 56.5x vs sector avg 16.0x.
PEG-Based EPS
$9.56
Blended Fair Value
$9.56
Methods
REIT P/FFO Relative
Quality Analysis
73/120 points
Investable (REIT)
Quality Flags
- REIT quality screen: FFO-based metrics used instead of standard ROE/ROIC/D/E
- FFO declining: -17.0%/yr
- No dividend data available
Market Sentiment
Wall Street Consensus
$64.00
+89.7% Upside
19 analysts
Range: $42.00 — $84.00
Rating: Buy
Our model is more cautious than Wall Street.
Trend & Technical
Price ($33.76) is 46.4% below SMA 200 ($62.94). Bearish trend. Caution on entry.
Tech Score 46/100 — Weak technicals. Bearish bias in trend or momentum.
Risk & Reward
Asymmetry Ratio
10.00:1
Expected Return
+51.0%
Bull Upside
+109.2%
Bear Downside
-10.0%
Excellent asymmetry: >3:1 ratio. Upside significantly outweighs downside.
Verdict: Very Favorable
Scenario Analysis
Bear
Base
Bull
Buy Zone & Action Plan
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AI Executive Summary
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Technical Analysis
RSI, MACD, moving averages, trend signals, and momentum indicators.
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Frequently Asked Questions
What is the fair value of CSGP?
Based on our multi-method conviction analysis, the estimated fair value of CoStar Group, Inc. (CSGP) is $9.56. This is calculated by blending REIT P/FFO Relative and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is moderate.
Is CSGP a buy, sell, or hold?
CSGP currently has a AVOID rating with a conviction score of 3/10. Low quantitative score: Low quality, stretched valuation, or poor risk/reward. Quantitative score: weak.
Is CSGP a high-quality stock?
CoStar Group, Inc. has a quality grade of C (73/120 points), rated as Investable (REIT). Key metrics include ROE of —%, ROIC-WACC spread of —%, and D/E ratio of —x.
What type of stock is CSGP?
CSGP is classified as a "growth" in our framework. High P/E: 482.3x, Low dividend (reinvesting): 0.0%, Moderate growth: 12.3%
What do Wall Street analysts say about CSGP?
19 Wall Street analysts have a consensus price target of $64.00 for CSGP, representing +89.7% upside. Targets range from $42.00 to $84.00. The consensus recommendation is "Buy". Our model is more cautious than Wall Street.
What are the risks of investing in CSGP?
The risk/reward asymmetry ratio for CSGP is 10.00:1, rated as Very Favorable. Excellent asymmetry: >3:1 ratio. Upside significantly outweighs downside. The expected return is +51.0%, with bull case upside of +109.2% and bear case downside of -10.0%.
What is the current trend for CSGP?
CSGP is in a bearish trend. Price ($33.76) is 46.4% below SMA 200 ($62.94). Bearish trend. Caution on entry. The technical score is 46/100.
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Last updated: May 19, 2026 · Framework version 3.7
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.