CoStar Group, Inc. (CSGP)

FairStock Score: 33/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

CoStar is a real estate data and marketplace business whose broad property database and network effects can create switching costs. That is a genuine moat, but the financial record is uneven. In fiscal 2023 it earned $375.0 million on $2.5 billion of revenue; in fiscal 2024 net income fell to $139.0 million on $2.7 billion; in fiscal 2025 it earned just $7.0 million on $3.2 billion. The latest fiscal Q2 2026, the quarter ended 2026-06-30, showed $925.0 million of revenue, $55.0 million of net income, and $0.14 diluted EPS—better, but the net margin was only 5.95%. Revenue is growing; profits have not been durable. FairStock's computed Lynch category is SLOW GROWER—Shrinking, with profit down 50.1% a year over five years. Financial health is a bright spot: debt/equity is 0.15, Altman Z-Score 4.31, Piotroski F-Score 8/9, and trailing free cash flow $227.0 million. But at the 2026-10-26 close of $33.70 and a $13.7 billion market cap, FairStock shows P/E 187.22, EV/EBITDA 34.72, FCF yield 1.7%, ROE 0.89%, ROCE 0.47%, and a Graham Number of $8.91—a negative 280.70% margin of safety. PEG 0.23 looks cheap only because profits are depressed. I see a good franchise priced for a recovery that has not yet been proven. Graham would want more earnings and a larger discount; Buffett would ask whether the moat converts into durable owner earnings. I would wait for evidence of sustained margins before calling it a bargain.

In plain English: CoStar provides property data, analytics, and online marketplaces for real estate businesses. Sales are growing and debt is low, but profits are thin and uneven. At the 2026-10-26 close of $33.70, the price looks high compared with recent profits and the cash the business produces.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer