A Look At CoStar Group (CSGP) Valuation As Longer Term Returns Lag Recent Gains

Simply Wall St

Mon, February 23, 2026 at 10:08 AM GMT+9 3 min read

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CSGP

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CoStar Group stock snapshot and recent performance

CoStar Group (CSGP) has attracted attention after recent share price swings, with the stock around $49.87. Returns over the past month and past 3 months show double digit declines, alongside a weaker 1 year performance.

See our latest analysis for CoStar Group.

CoStar Group’s recent 1 day and 7 day share price gains sit against weaker longer term share price returns, while the 1 year, 3 year, and 5 year total shareholder returns remain negative, suggesting momentum has been fading rather than building.

If this kind of volatility has you looking wider than a single name, it could be a good moment to scan the market using our 22 top founder-led companies.

With the share price softer over the past year, yet trading at around a 15% discount to one estimate of intrinsic value and a larger gap to some analyst targets, is there a genuine buying opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 36.1% Undervalued

CoStar Group’s most followed narrative puts fair value at about $78.05 per share, well above the last close at $49.87. This frames a sizable valuation gap and a detailed long term growth story.

Major investments in residential real estate, international expansion, and advanced analytics are unlocking new revenue streams and accelerating long-term growth opportunities.

Read the complete narrative.

Want to see what kind of revenue curve and margin profile need to line up to justify that higher fair value? The narrative leans heavily on residential scale up, richer analytics, and a premium future earnings multiple. Curious how those moving parts are stitched together and discounted back at its chosen rate?

Result: Fair Value of $78.05 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, that upbeat fair value story could unravel if Homes.com spending fails to translate into stronger margins, or if commercial real estate weakness persists longer than analysts expect.

Find out about the key risks to this CoStar Group narrative.

Another View on CoStar’s Valuation

The earlier fair value work suggested CoStar looks undervalued, but the current P/S ratio of 6.9x paints a different picture. It sits well above the US Real Estate industry average of 2.7x and above an estimated fair ratio of 4.6x, which points to meaningful valuation risk if sentiment cools.

Story Continues  

With one model flagging upside and another hinting at a rich P/S, which story do you think better matches your view on CoStar’s growth and execution?

See what the numbers say about this price — find out in our valuation breakdown.

NasdaqGS:CSGP P/S Ratio as at Feb 2026

Next Steps

With the story pulling in different directions, do you feel the market is too cautious or too optimistic, and how quickly do you want to firm up your own view? A good next step is to weigh both sides of the ledger by looking at the 2 key rewards and 2 important warning signs and considering how that balance fits your risk tolerance.

Looking for more investment ideas?

If you stop with just one stock, you might miss others that fit your goals even better, so give yourself options by checking a few targeted shortlists.

Spot potential bargains early by scanning our screener containing 23 high quality undiscovered gems that the wider market may not be watching closely yet.

Focus on quality at a sensible price by checking companies in our 54 high quality undervalued stocks that pair fundamentals with a more grounded valuation.

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_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include CSGP.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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