Is CoStar Group Stock (CSGP) a Good Investment?

By AAII Staff
September 03, 2026
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Learn more about whether CoStar Group, Inc. is a good stock to buy or sell based on recent news as well as its key financial metrics. Read on to find out how (CSGP) grades on certain investment factors and determine whether it meets your investment needs.

Latest CoStar Group, Inc. Stock News

As of September 02, 2026, CoStar Group, Inc. had a $12.7 billion market capitalization, putting it in the 81st percentile of companies in the Real Estate Management & Development industry.

Currently, CoStar Group, Inc.’s price-earnings ratio is 176.6. CoStar Group, Inc.’s trailing 12-month revenue is $3.6 billion with a 2.1% profit margin. Year-over-year quarterly sales growth most recently was 18.4%. Analysts expect adjusted earnings to reach $1.363 per share for the current fiscal year. CoStar Group, Inc. does not currently pay a dividend.



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Grading CoStar Group, Inc. Stock

Before you choose to buy, sell or hold CoStar Group, Inc. stock, you’ll want to analyze how it has been graded. Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement. To help individual investors decide whether or not to buy (CSGP) stock, AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way that is suitable for investors of all knowledge levels.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings revisions and quality. Here, we’ll take a closer look at CoStar Group, Inc.’s stock grades for value, growth and quality. Learn more about A+ Investor here!

CoStar Group, Inc. Stock Value Grade

Value Grade:

Metric Rank CSGP Sector Median
Price/Sales 68 3.62 3.91
Price/Earnings 97 176.6 28.3
EV/EBITDA 97 106.8 16.2
Shareholder Yield 22 3.7% 1.8%
Price/Book Value 41 1.60 1.48
Price/Free Cash Flow 86 56.8 32.4

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade is derived from a stock’s value score. The value score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

CoStar Group, Inc. has a Value Score of 19, which is Ultra Expensive.

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CoStar Group, Inc. Stock Quality Grade

Quality Grade:

Metric Score CSGP Sector Median
Return on Assets (ROA) 43 0.7% 2.0%
Return on Invested Capital (ROIC) 20 2.2% 5.1%
Gross Income to Assets 69 27.6% 8.7%
Buyback Yield 86 3.7% (0.5%)
Change in Total Liabilities to Assets 47 2.8% 1.3%
Accruals to Assets 46 (4.2%) (3.3%)
Z Double Prime Bankruptcy Risk (Z) Score 80 8.44 4.87
F-Score 67 6 6

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Grade is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

CoStar Group, Inc. has a Quality Score of 67, which is Strong.

CoStar Group, Inc. Stock Momentum Grade

Momentum Grade:

Metric Score CSGP Sector Median
Relative Price Strength (Q1) 35 (8.1%) (1.8%)
Relative Price Strength (Q2) 9 (38.1%) (10.2%)
Relative Price Strength (Q3) 14 (28.2%) 4.4%
Relative Price Strength (Q4) 17 (26.7%) (9.7%)
Relative Price Strength (weighted 4 qtr) 10 (21.8%) (3.2%)

Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

CoStar Group, Inc. has a Momentum Score of 10, which is Very Weak.

Other CoStar Group, Inc. Stock Grades

In addition to Value, Momentum and Quality, A+ Investor also provides grades for Growth and Estimate Revisions.

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The Earnings Estimate Revisions Grade takes into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too). AAII’s stock screen that follows the companies with the highest earnings estimate revisions (i.e., the best grades) has a 23.3% backtested annual return since inception, whereas an example screen following those with the worst revisions has a backtested annual return since inception of under 5%.

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower—growth companies. AAII measures several dimensions of growth in its Growth Grade, including year—over—year increases in sales and earnings, long(er)—term historical sales and earnings growth rates and analyst‐forecasted long—term earnings growth.

These 2 key factors, when combined with the above, provide a holistic view into a stock. Further, by joining A+ Investor you can see whether CoStar Group, Inc.’s stock passes any of our 60+ stock screens that have outperformed the market since their creation.

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Should I Buy CoStar Group, Inc. Stock?

Overall, CoStar Group, Inc. stock has a Value Grade of F, Quality Grade of B, and Momentum Grade of F.

Whether or not you should buy CoStar Group, Inc. stock will ultimately depend on your individual goals, risk tolerance and allocation. AAII can help you figure these out and identify which investments align with what works best for you.

Lastly, it’s important to evaluate a stock by comparing it against others in the same industry. Review the table below to see how CoStar Group, Inc. stock stands up against its competitors. Click into any of the below tickers to see their stock grades for value, momentum, quality and EPS revisions.

CoStar Group, Inc. (CSGP) Competitors

Companies similar to CoStar Group, Inc. in the Real Estate Management & Development industry.

Company name Ticker Market Cap
China Resources Mixc Lifestyle Services Limited CRMLY $14.80Bil
Sino Land Company Limited SNLAY $11.38Bil
Jones Lang LaSalle Incorporated JLL $16.68Bil
Henderson Land Development Company Limited HLDCY $16.61Bil
Hongkong Land Holdings Limited HNGKY $16.03Bil

CoStar Group, Inc. Stock: Bottom Line

You can use the information about how CoStar Group, Inc. is graded to determine if you should invest in this stock. However, you should decide whether CoStar Group, Inc.’s stock is a buy, sell or hold based on a combination of grades, metrics, ratios and U.S. Securities and Exchange Commission (SEC) reports.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets—without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

So, if you’re still on the fence about whether CoStar Group, Inc. is a buy, sell or hold, you can utilize AAII’s expansive and robust screening tools like A+ Investor to help with your decision.

A+ Investor adds to its qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions, find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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