Discounted Cash Flow (DCF) Analysis Levered

CoStar Group, Inc. (CSGP)

$81.88

+2.15 (+2.70%)

All numbers are in Millions, Currency in USD

Stock DCF: 52.38 | 81.88 | overvalue

Free Cash Flow

Year A/P	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	1,659.02	1,944.14	2,182.40	2,503.66	2,872.22	3,295.03	3,780.08	4,336.53	4,974.90
Revenue (%)
Operating Cash Flow	486.11	469.73	478.62	629.20	721.82	828.08	949.97	1,089.82	1,250.24
Operating Cash Flow (%)
Capital Expenditure	-48.35	-65.22	-58.57	-74.72	-85.71	-98.33	-112.81	-129.41	-148.46
Capital Expenditure (%)
Free Cash Flow	437.76	404.51	420.05	554.48	636.10	729.74	837.17	960.40	1,101.78

Weighted Average Cost Of Capital

Share price	$ 81.88
Beta	0.884
Diluted Shares Outstanding	397.75
Cost of Debt
Tax Rate	24.05
After-tax Cost of Debt	3.80%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.865
Total Debt	1,097.68
Total Equity	32,567.93
Total Capital	33,665.61
Debt Weighting	3.26
Equity Weighting	96.74
Wacc

Build Up Free Cash Flow

Year A/P	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	1,659.02	1,944.14	2,182.40	2,503.66	2,872.22	3,295.03	3,780.08	4,336.53	4,974.90
Operating Cash Flow	486.11	469.73	478.62	629.20	721.82	828.08	949.97	1,089.82	1,250.24
Capital Expenditure	-48.35	-65.22	-58.57	-74.72	-85.71	-98.33	-112.81	-129.41	-148.46
Free Cash Flow	437.76	404.51	420.05	554.48	636.10	729.74	837.17	960.40	1,101.78
WACC
PV LFCF				597.34	636.10	677.38	721.34	768.14	817.99
SUM PV LFCF									3,361.14

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.73
Free cash flow (t + 1)	1,123.82
Terminal Value	19,612.84
Present Value of Terminal Value	13,516.28

Intrinsic Value

Enterprise Value	16,877.42
Net Debt	-3,957.97
Equity Value	20,835.39
Shares Outstanding	397.75
Equity Value Per Share	52.38