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DCF valuation

What is Costar Group, Inc. worth?

With the base-case assumptions below, a discounted cash flow model on Costar Group, Inc.'s reported free cash flow gives $8.12 per share. The share price was $30.33 on November 10, 2026, 274% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$123M
Average free cash flow, last 5 years
$219.7M
Cash
$500M
balance sheet of September 30, 2026
Debt
$1B
balance sheet of September 30, 2026
Diluted shares, fiscal 2025
420,700,000
Revenue growth per year, last 5 years
14.4%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear9.5%6.0%2.0%10.0%$4.56-85%
Base14.5%8.5%2.5%9.0%$8.12-73%
Bull19.5%11.5%3.0%8.0%$15.20-50%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$10.87$11.72$12.77$14.08$15.76
8.0%$8.80$9.36$10.01$10.80$11.76
9.0%$7.30$7.68$8.12$8.63$9.23
10.0%$6.16$6.43$6.74$7.09$7.49
11.0%$5.27$5.47$5.69$5.94$6.22

Where the presets come from

Base: years 1 to 5 grow at Costar Group, Inc.'s revenue growth rate over the last 5 fiscal years (14.4% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Costar Group, Inc. company page