DCF Tool

CSGP

Costar Group, Inc. – Software Publishers
CoStar Group, Inc. is the leading provider of commercial real estate information, analytics and online marketplaces. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Its suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality sector. Ten-X provides a leading platform for conducting commercial real estate online auctions and negotiated bids. LoopNet is the most heavily trafficked commercial real estate marketplace online. Realla is the UK's most comprehensive commercial property digital marketplace. Apartments.com, ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, Westside Rentals, AFTER55.com, CorporateHousing.com, ForRentUniversity.com and Apartamentos.com form the premier online apartment resource for renters seeking great apartment homes and provide property managers and owners a proven platform for marketing their properties. Homesnap is an industry-leading online and mobile software platform that provides user-friendly applications to optimize residential real estate agent workflow and reinforce the agent-client relationship. CoStar Group's websites attract tens of millions of unique monthly visitors. Headquartered in Washington, DC, CoStar maintains offices throughout the U.S. and in Europe, Canada and Asia with a staff of over 4,600 worldwide, including the industry's largest professional research organization.
Analysis Results
Intrinsic Value $14.22
Latest Price $75.13
Relative Value 428% overvalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 17.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 11.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 17.7%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 340 306
2023 400 324
2024 470 343
2025 554 364
2026 651 386
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 7340 million. This corresponds to a present value of 3910 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1720 million. Adding in the terminal value gives a total present value of 5630 million.

There are presently 396.0 million outstanding shares, so the intrinsic value per share is 14.22.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,988,125,000
Current Cash 3,827,126,000
Current Liabilities 338,689,000
Current Debt 0
Non-Cash Working Capital (NCWC) -177,690,000
Change in NCWC 20,560,000
EBIT 432,337,000
Tax Provision 111,404,000
Depreciation and Amortization 139,558,000
Capital Expenditure -188,984,000
Unlevered Free Cash Flow 284,243,558
Current Assets 3,888,512,000
Current Cash 3,755,912,000
Current Liabilities 330,850,000
Current Debt 0
Non-Cash Working Capital (NCWC) -198,250,000
Change in NCWC -119,628,000
EBIT 289,202,000
Tax Provision 43,852,000
Depreciation and Amortization 116,944,000
Capital Expenditure -48,347,000
Unlevered Free Cash Flow 191,370,180
Current Assets 1,199,165,000
Current Cash 1,070,731,000
Current Liabilities 207,056,000
Current Debt 0
Non-Cash Working Capital (NCWC) -78,622,000
Change in NCWC -37,345,000
EBIT 363,547,000
Tax Provision 75,986,000
Depreciation and Amortization 81,165,000
Capital Expenditure -46,197,000
Unlevered Free Cash Flow 290,509,933
Current Assets 1,213,298,000
Current Cash 1,100,416,000
Current Liabilities 154,159,000
Current Debt 0
Non-Cash Working Capital (NCWC) -41,277,000
Change in NCWC 28,917,000
EBIT 273,564,000
Tax Provision 45,681,000
Depreciation and Amortization 77,743,000
Capital Expenditure -29,632,000
Unlevered Free Cash Flow 306,591,939
Current Assets 1,287,935,000
Current Cash 1,211,463,000
Current Liabilities 146,666,000
Current Debt 0
Non-Cash Working Capital (NCWC) -70,194,000
Change in NCWC -7,382,000
EBIT 173,816,000
Tax Provision 42,363,000
Depreciation and Amortization 63,643,000
Capital Expenditure -24,499,000
Unlevered Free Cash Flow 160,967,213
Current Assets 627,491,000
Current Cash 567,223,000
Current Liabilities 154,946,000
Current Debt 31,866,000
Non-Cash Working Capital (NCWC) -62,812,000
Change in NCWC 4,808,000
EBIT 144,905,000
Tax Provision 51,591,000
Depreciation and Amortization 70,165,000
Capital Expenditure -18,766,000
Unlevered Free Cash Flow 146,409,201
Current Assets 472,733,000
Current Cash 421,818,000
Current Liabilities 135,281,000
Current Debt 16,746,000
Non-Cash Working Capital (NCWC) -67,620,000
Change in NCWC -41,129,000
EBIT 11,455,000
Tax Provision 6,046,000
Depreciation and Amortization 78,532,000
Capital Expenditure -35,061,000
Unlevered Free Cash Flow 7,751,000
Current Assets 599,811,000
Current Cash 527,012,000
Current Liabilities 119,290,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) -26,491,000
Change in NCWC 8,486,000
EBIT 80,878,000
Tax Provision 26,044,000
Depreciation and Amortization 70,372,000
Capital Expenditure -27,444,000
Unlevered Free Cash Flow 102,588,185
Current Assets 308,466,000
Current Cash 255,953,000
Current Liabilities 111,553,000
Current Debt 24,063,000
Non-Cash Working Capital (NCWC) -34,977,000
Change in NCWC 5,662,000
EBIT 54,154,000
Tax Provision 17,803,000
Depreciation and Amortization 40,058,000
Capital Expenditure -19,042,000
Unlevered Free Cash Flow 60,550,878
Current Assets 199,563,000
Current Cash 156,064,000
Current Liabilities 101,638,000
Current Debt 17,500,000
Non-Cash Working Capital (NCWC) -40,639,000
Change in NCWC -13,245,000
EBIT 27,440,000
Tax Provision 13,219,000
Depreciation and Amortization 32,752,000
Capital Expenditure -14,834,000
Unlevered Free Cash Flow 16,433,508

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