On September 14, 2026, CoStar Group Inc CSGP shares rose 3.5% to a current price of $31.52. This price movement occurs within a 52-week range of $25.89 to $90.72, reflecting significant volatility over the past year.
- GF Valueâ„¢ verdict: Stock price is $31.52 vs GF Valueâ„¢ of $104.42, indicating it is 69.8% undervalued.
- GF Scoreâ„¢ of 71/100, which suggests an above-average rating in terms of fundamental metrics.
- Notable signal: Over the past 12 months, insiders have bought $8.5M worth of shares, indicating strong insider confidence.
Is CSGP Overvalued or Undervalued?
CoStar Group Inc CSGP presents an intriguing valuation scenario, with the current market price of $31.52 significantly below the GF Valueâ„¢ estimate of $104.42. This 69.8% margin of safety suggests a substantial opportunity for investors, provided they are willing to consider the inherent risks associated with market volatility and company performance. The GF Valuation label categorizes CSGP as significantly undervalued, indicating that the intrinsic value derived from historical data and future performance estimates greatly exceeds the current trading price.
However, potential investors should remain cautious. While the significant undervaluation presents an opportunity, it is essential to consider the underlying reasons for the stock's poor performance over the past year, with shares down 63.7% from a year ago. This decline raises questions about the sustainability of future growth and profitability, making it critical to analyze the company's fundamentals in detail.
How Does CSGP's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 165.9x | 129.1x |
| Forward P/E | 18.1x | N/A |
CSGP's current P/E ratio of 165.9x is notably above its 5-year median of 129.1x, suggesting that the stock is trading at a premium compared to its historical valuations. This analysis indicates that the current price may not align with its historical performance metrics, which could be a bearish signal contradicting the GF Valueâ„¢ assessment. However, the forward P/E of 18.1x presents a more favorable outlook, suggesting that earnings expectations may improve going forward.
What Does CSGP's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ is a comprehensive measure that evaluates a stock's fundamental performance across various dimensions, including financial strength, profitability, growth, valuation, and momentum. CSGP's GF Scoreâ„¢ of 71/100 indicates a robust standing, with its strongest sub-ranks in growth and profitability, while its valuation and momentum ranks are notably lower.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 71 |
| Financial Strength | 8/10 |
| Profitability | 8/10 |
| Growth | 9/10 |
| Valuation | 2/10 |
| Momentum | 1/10 |
CSGP's strong performance in financial strength, profitability, and growth indicates solid underlying fundamentals, while the low valuation and momentum ranks underscore the challenges the company faces in the market. The contrast in these scores suggests that while the company has the potential for growth, it may be undervalued due to market sentiment rather than performance issues, which is a critical point for potential investors.
What Are Gurus and Insiders Doing with CSGP?
Currently, 11 gurus hold positions in CSGP, with 9 of them increasing their stakes while only 3 have trimmed their positions in recent quarters. This indicates a generally positive sentiment among investment professionals regarding the stock's potential for recovery and growth.
Furthermore, insider activity over the past 12 months shows a net buying of $8.0M, with insiders purchasing $8.5M worth of shares and only $0.5M sold. This level of insider buying suggests that those closest to the company have confidence in its future prospects, reinforcing the notion of CSGP being undervalued and potentially positioned for a rebound.
What This Means for Investors
Based on the GF Valueâ„¢ assessment, CoStar Group Inc CSGP appears to be significantly undervalued at the current price of $31.52 compared to an estimated fair value of $104.42. The strong insider buying and the favorable GF Scoreâ„¢ suggest that there is potential for recovery, but caution is warranted due to the company's recent performance trends. For further insights and details, visit the CoStar Group Inc (CSGP) stock page for a comprehensive analysis.
Frequently Asked Questions
What is CSGP's GF Scoreâ„¢?
CSGP's GF Scoreâ„¢ is 71/100, indicating an above-average rating based on fundamental metrics. This score reflects the company's solid financial strength and profitability.
Is CSGP overvalued or undervalued?
CSGP is currently undervalued, with a GF Valueâ„¢ estimate of $104.42 compared to its market price of $31.52, suggesting a significant margin of safety.
What is CSGP's P/E ratio?
CSGP's current P/E ratio is 165.9x, which is above its 5-year median of 129.1x, indicating it is trading at a premium compared to its historical valuation metrics.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
