Invesaro

Stocks CSGP DCF valuation

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 $9.94 per share. The share price was $28.09 on September 25, 2026, 183% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$123M
Average free cash flow, last 5 years
$219.7M
Cash
$1.27B
balance sheet of June 30, 2026
Debt
$1B
balance sheet of June 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%$6.38-77%
Base14.5%8.5%2.5%9.0%$9.94-65%
Bull19.5%11.5%3.0%8.0%$17.02-39%

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%$12.69$13.54$14.59$15.90$17.58
8.0%$10.62$11.18$11.83$12.62$13.58
9.0%$9.12$9.50$9.94$10.45$11.05
10.0%$7.98$8.25$8.56$8.91$9.31
11.0%$7.09$7.29$7.51$7.76$8.04

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