Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
CoStar Group's Sloan Ratio for the quarter that ended in Mar. 2026 was 14.59%.
As of Mar. 2026, CoStar Group has a Sloan Ratio of 14.59%, indicating there is a warning stage of accrual build up.
CoStar Group (MEX:CSGP) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Mar. 2026, CoStar Group has a Sloan Ratio of 14.59%, indicating there is a warning stage of accrual build up.
CoStar Group Sloan Ratio % Related Terms
CoStar Group Sloan Ratio % Historical Data
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The historical data trend for CoStar Group's Sloan Ratio % 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.
MEX:CSGP vs JLL, BEKE, COMP: Sloan Ratio % Comparison
For the Real Estate Services subindustry, CoStar Group's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, CoStar Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where CoStar Group's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
CoStar Group's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
CoStar Group's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 116.741 (Jun. 2025 ) + -566.836 (Sep. 2025 ) + 837.265 (Dec. 2025 ) + 54.098 (Mar. 2026 ) = MXN441 Mil.
CoStar Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 2762.244 (Jun. 2025 ) + 1251.074 (Sep. 2025 ) + 2918.724 (Dec. 2025 ) + 2740.97 (Mar. 2026 ) = MXN9,673 Mil.
CoStar Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -2831.912 (Jun. 2025 ) + -30972.347 (Sep. 2025 ) + -1191.977 (Dec. 2025 ) + -973.766 (Mar. 2026 ) = MXN-35,970 Mil.
* 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.
CoStar Group (MEX:CSGP) has a Sloan Ratio % of 14.59% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on CoStar Group and its competitors.
Is CoStar Group's Sloan Ratio % too high?
CoStar Group's current Sloan Ratio % is 14.59%. Overall, CoStar Group has a GF Score™ of 67/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does CoStar Group's Sloan Ratio % compare to JLL and BEKE?
CoStar Group's Sloan Ratio % of 14.59% can be compared against companies in the Real Estate industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Real Estate company?
A good Sloan Ratio % depends on the Real Estate industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on CoStar Group and its competitors. CoStar Group's current Sloan Ratio % is 14.59%. 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 (MEX:CSGP) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN2,046.90, compared to a current price of MXN585.00 — trading 71.4% below its estimated fair value. The current Sloan Ratio % is 14.59%. CoStar Group's overall GF Score™ is 67/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For CoStar Group (MEX:CSGP), the current Sloan Ratio % is 14.59% 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 (MEX:CSGP) Overvalued in 2026?
Based on GuruFocus' analysis, CoStar Group stock appears to be undervalued.
The current stock price of MXN585.00 is trading 71.4% below its estimated GF Value™ of MXN2,046.90.
GuruFocus considers CoStar Group to be Significantly Undervalued.
Key valuation signals for MEX:CSGP:
Sloan Ratio %: 14.59%
GF Value™: MXN2,046.90 vs. price of MXN585.00 (71.4% below fair value)
No single metric tells the full story. See the MEX:CSGP 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.
67GF Score
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