CoStar Group, Inc. (CSGP) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: CoStar Group, Inc.

Updated on October 19, 2026 · accounts published on July 28, 2026

Reading of October 16, 2026: A fast-growing business whose margins have fallen to their weakest in over a decade

CoStar trades at 49.9× fiscal 2025 FFO, far above the 15.0× to 20.0× healthy range for REITs, after the stock fell 57 % over the last 12 months.

• Is CoStar expensive or cheap? At 49.9× fiscal 2025 FFO, CoStar trades at more than double the 15.0× to 20.0× range considered healthy for REITs.
• How is the business doing? Revenue grew 19 % over the last 12 months, but the operating margin is 2.2 %, against a 14 % average for fiscal 2014 to 2025.
• How strong is the balance sheet? Debt was 10.9 % of assets in fiscal 2025, far below the 60 % ceiling for REITs, and CoStar holds more cash than debt.
• What to expect from the next earnings? CoStar reports on October 27, 2026. Analysts expect EPS of $0.34, and it has beaten estimates in each of the last 8 quarters.
• At what multiple of FFO does CoStar trade? CoStar trades at 49.9× its fiscal 2025 FFO of $0.65 per share, against a 15.0× to 20.0× healthy range for REITs.

Is CoStar expensive or cheap?

Start with price to FFO, the multiple that matters in this sector. At 49.9× fiscal 2025 FFO, CoStar trades far above the 15.0× to 20.0× healthy range. Price to book is a modest 1.6× over the last 12 months, but current profitability does not support it: free cash flow yield is only 0.9 % and EV/EBITDA stands at 31.2×. The stock has fallen 57 % over the last 12 months and trades 59 % below its 52-week high of $78.23. Even after that drop, the market is paying for future growth more than for current earnings. Over the past decade its P/E ranged between 60.7 and 233.7.

How is the business doing?

CoStar is growing fast but earning little from that growth. Revenue rose 19 % over the last 12 months, yet the operating margin over the same period is just 2.2 %, a fraction of the 14 % average across fiscal 2014 to 2025. Fiscal 2025 was the low point, with an operating margin of −2.2 %, the weakest of those 12 years. The last 12 months show a return to positive territory, which counts, but the gap to the historical average is still wide. The growth is there. What investors need to see is that growth turning back into profit.

How strong is the balance sheet?

The balance sheet is the strongest part of the picture. Debt to equity is 0.15 over the last 12 months, and debt was 10.9 % of assets in fiscal 2025, against a healthy limit of 60 % for REITs. Net debt to EBITDA was −2.2× in fiscal 2025, which means cash exceeds debt. The sector benchmark passes up to 6.0× and rates as excellent below 5.0×. With that cushion, weak margins hurt profitability while solvency stays comfortable, and the company has room to absorb a slower recovery.

What to expect from the next earnings?

CoStar has beaten EPS estimates in 8 of the last 8 quarters. On July 28, 2026 it reported $0.32 against $0.29 expected, a 12 % beat. For the quarter due October 27, 2026, the consensus is $0.34. The 2026 EPS consensus has held at $1.37 over the last 30 days among 4 analysts, and revenue estimates have barely moved, so expectations going in are stable. Of the 27 analysts covering the company, 16 recommend buying, 9 holding and 2 selling. Given that beat record, the margin trend will likely matter more than the headline EPS.

At what multiple of FFO does CoStar trade?

In a REIT, EPS and P/E mislead because real-estate depreciation distorts reported profit. For that reason the sector looks at funds from operations (FFO), which adds that depreciation back. FFO per share was $0.65 in fiscal 2025. There is no fixed threshold for it, so the useful reading is how it changes over time. At the current price, CoStar trades at 49.9× that FFO, more than twice the top of the 15.0× to 20.0× range considered healthy. The leverage metrics pass comfortably, which makes the stretched multiple the one sector test CoStar fails.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.