CSGP
Costar Group, Inc.
TMT, Finance/Real Estate
12/01/2020
Presented
| Date | 11/24/2020 |
| Price | $86.99 |
| Market Cap | $34.29B |
| Ent Value | $30.69B |
| P/E Ratio | 116.71x |
| Book Value | $13.49 |
| Div Yield | 0% |
| Shares O/S | 394.18M |
| Ave Daily Vol | 1,752,200 |
| Short Int | 1.07% |
Current
| Price | $78.22 |
| Market Cap | $32.06B |
| CoStar Group, Inc. provides commercial real estate information, analytics, and online marketplaces to the commercial real estate and related business communities. The firm’s suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values and market conditions. Its brands include CoStar, which is the largest provider of CRE research and real-time data; LoopNet, which is the most heavily trafficked mobile and online real estate marketplace; Apartments.com, which is the rental home resource for renters, property managers and owners; STR, which provides performance benchmarking and comparative analytics to the hotel industry; BizBuySell, which is the online marketplace for businesses-for-sales; and Lands of America, which is the operator of online marketplaces for rural real estate. The company was founded by Andrew C. Florance and Michael R. Klein in 1987 and is headquartered in Washington, DC. |
Please note, this stock split on 06/28/2021 at a ratio of 10/1. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of $869.91.
Publicly traded companies mentioned herein: CoStar Group (CSGP), REA Group Ltd (REA AU), Zillow Group Inc (ZG)
Highlights
The present is long shares of CoStar Group (CSGP), which he believes is an incremental growth story that centers on the company’s multi-family and commercial real estate businesses, Apartments.com and LoopNet. The company has been investing in both businesses, is taking meaningful share, and is the number one player in both spaces. Beyond these two businesses, CSGP has continued to make acquisitions, has a footprint in almost every part of the digital real estate market in the U.S., and increasingly international, with the exception of single-family residential. While optically the stock can look expensive, CSGP is highly cash generative, has a strong balance sheet, is a high margin business, and has the opportunity to expand its TAM. Additionally, the company is founder-led and has a strong track record of good M&A and execution. Over the next 18 months, the presenter has a price target of $1350/share or 50% upside from the stock’s current price of ~$870/share.
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