CoStar GroupMIL:1CSGP 56 Gross Margin % is 78.15% as of Mar. 2026, which is 2% below its 10-year median of 79.48. GuruFocus rates MIL:1CSGP with a GF Score™ of 56/100 and a GF Value™ of €95.81 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,644 Real Estate companies, CoStar Group ranks better than 87.35% on this metric.
The historical rank and industry rank for CoStar Group's Gross Margin % or its related term are showing as below:
MIL:1CSGP'
s Gross Margin % Range Over the Past 10 Years
Min: 77.17 Med: 79.48 Max: 81.63
Current: 78.64
During the past 13 years, the highestGross Margin % of CoStar Group was 81.63%. The lowest was 77.17%. And the median was 79.48%.
MIL:1CSGP's Gross Margin % is ranked better than 87.35% of 1644
companies
in the Real Estate industry
Industry Median: 36.96
vs MIL:1CSGP: 78.64
CoStar Group had a gross margin of 78.15% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for CoStar Group was -0.70% per year.
CoStar Group (MIL:1CSGP) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
CoStar Group had a gross margin of 78.15% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
CoStar Group Gross Margin % Related Terms
CoStar Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for CoStar Group's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MIL:1CSGP vs JLL, BEKE, COMP: Gross Margin % Comparison
For the Real Estate Services subindustry, CoStar Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
CoStar Group Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, CoStar Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CoStar Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
CoStar Group (MIL:1CSGP) has a Gross Margin % of 78.15% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on CoStar Group and its competitors. This is near median its historical median of 79.48. Over the past decade, CoStar Group's Gross Margin % has ranged from 77.17 to 81.63. According to the industry distribution chart, CoStar Group ranks #208 out of 1644 companies in the Real Estate industry, placing it in the top 12.7%.
Is CoStar Group's Gross Margin % too high?
CoStar Group's current Gross Margin % of 78.15% is near median its 10-year median of 79.48. Over the past 10 years, this metric has ranged from a low of 77.17 to a high of 81.63. The Real Estate industry median Gross Margin % is 36.96. CoStar Group's value of 78.15% is 111.4% above this industry median. Based on the distribution chart, CoStar Group ranks #208 out of 1644 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, CoStar Group has a GF Score™ of 56/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does CoStar Group's Gross Margin % compare to JLL and BEKE?
According to the Real Estate industry distribution chart, CoStar Group ranks #208 out of 1644 companies for Gross Margin %. This places CoStar Group in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.96. CoStar Group's value of 78.15% is 111.4% above this benchmark. Historically, CoStar Group's own Gross Margin % has ranged from 77.17 to 81.63 over the past decade. While the company's 10-year median is 79.48 vs. the industry median of 36.96, CoStar Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Real Estate company?
The median Gross Margin % among Real Estate companies is 36.96, based on 1,644 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CoStar Group's current Gross Margin % of 78.15% is 111.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on CoStar Group and its competitors. For the Real Estate industry, the median Gross Margin % is 36.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CoStar Group's current Gross Margin % is 78.15%, which is near median its own 10-year median of 79.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CoStar Group stock overvalued right now?
Based on GuruFocus' analysis, CoStar Group (MIL:1CSGP) is currently considered Significantly Undervalued. The stock's GF Value™ is €95.81, compared to a current price of €26.90 — trading 71.9% below its estimated fair value. The current Gross Margin % is 78.15%, which is near median its 10-year median of 79.48 and 111.4% above the Real Estate industry median of 36.96. CoStar Group's overall GF Score™ is 56/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For CoStar Group (MIL:1CSGP), the current Gross Margin % is 78.15% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is CoStar Group (MIL:1CSGP) Overvalued in 2026?
Based on GuruFocus' analysis, CoStar Group stock appears to be undervalued.
The current stock price of €26.90 is trading 71.9% below its estimated GF Value™ of €95.81.
GuruFocus considers CoStar Group to be Significantly Undervalued.
Key valuation signals for MIL:1CSGP:
Gross Margin %: 78.15% (near median its 10-year median of 79.48)
GF Value™: €95.81 vs. price of €26.90 (71.9% below fair value)
Industry Position: 111.4% above the Real Estate median (#208 of 1644)
No single metric tells the full story. See the MIL:1CSGP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CoStar Group is a global provider of proprietary information, analytics, and online marketplaces serving both commercial and residential real estate. The firm operates through a diverse portfolio of brands, including CoStar Suite for commercial real estate research, LoopNet for commercial listings, Apartments.com for multifamily rentals, and Homes.com for residential brokerage. It primarily sells high-margin software-as-a-service subscriptions that provide institutional clients with forensic property data and premium advertising visibility. With operations across North America, Europe, and Asia-Pacific, CoStar maintains the industry's most comprehensive centralized real estate database, functioning as a critical information utility for brokers, lenders, and owners worldwide.
56GF Score
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