CoStar Group, Inc. ranks among the weaker positions in its peer group, with a split structural profile: strong growth, but weak profitability and valuation. The market setup has weakened, with clear trend damage and relative performance under pressure. Price action is lagging the structural profile — current market behavior is not yet confirming the structural position.
Peer-relative scores, weakest to strongest
CoStar Group provides real estate information, analytics, and operates online marketplaces for property transactions.
The market prices CoStar Group as a cyclical recovery candidate at a valuation discount, rather than a reliable quality name. With a return on invested capital of just 3.6% (trails peer median over last two years) and an operating margin of 13.7% (below sector average in FY25), the market consistently withholds a quality premium and maintains a discounted valuation. Despite revenue growth, CoStar shows declining capital returns and weaker margins compared to peers, so the market continues to assign a valuation discount. In the data-driven real estate sector, the market expects persistent margin strength and capital returns as proof of quality; CoStar falls short on these metrics. Only a sustained return of capital efficiency and margins to peer levels for at least two quarters would shift the market's valuation framing.
Break down CSGP's position across all dimensions with the full interactive tool.
This analysis is rule-based and descriptive. Peer-relative scores are derived from functional peer group comparisons using publicly available financial data. Scores reflect structural positioning only and do not constitute investment advice, a buy or sell recommendation, or a forecast of future performance. AssetNext peer scores are recalculated periodically as new data becomes available.
AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.
Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.
Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.
Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.