CoStar Group, Inc. (NASDAQ:CSGP) is a leading provider of commercial real estate information, analytics, and online marketplaces. The company operates well-known platforms such as Apartments.com, LoopNet, and Homes.com, which contribute significantly to its revenue. As a major player in the real estate data industry, CoStar competes with firms like Zillow and Redfin.
On February 18, 2025, CoStar is set to release its fourth-quarter earnings. Analysts expect earnings per share (EPS) to be $0.22, a 33.33% decline from the previous year. Despite this drop, the company anticipates revenues between $693 million and $703 million, marking a 9% growth at the midpoint. The Zacks Consensus Estimate aligns with these projections, suggesting stable analyst expectations.
CoStar's financial metrics reveal a high valuation, with a price-to-earnings (P/E) ratio of 171.79. This indicates that investors are paying a premium for the company's earnings. The price-to-sales ratio of 11.38 shows that investors are willing to pay over 11 times the company's sales per share. These figures suggest strong investor confidence in CoStar's future growth prospects.
The company's enterprise value to sales ratio is 9.95, reflecting its total valuation compared to sales. Additionally, the enterprise value to operating cash flow ratio stands at 59.88, indicating the cost investors are willing to pay for each dollar of cash flow from operations. CoStar's earnings yield is 0.58%, providing insight into the return on investment.
CoStar maintains a conservative capital structure with a low debt-to-equity ratio of 0.15. This suggests limited reliance on debt financing. The company's current ratio of 9.63 indicates a strong ability to cover short-term liabilities with short-term assets, highlighting its financial stability.
