Discounted Cash Flow (DCF) Analysis Unlevered
CoStar Group, Inc. (CSGP)
$67.14
+1.29 (+1.96%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 1,191.83 | 1,399.72 | 1,659.02 | 1,944.14 | 2,182.40 | 2,539.27 | 2,954.50 | 3,437.63 | 3,999.76 | 4,653.81 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 364.59 | 474.73 | 370.53 | 575.15 | 656.47 | 744.03 | 865.70 | 1,007.26 | 1,171.97 | 1,363.61 |
| EBITDA (%) | ||||||||||
| EBIT | 286.85 | 393.56 | 253.59 | 435.59 | 518.58 | 577.11 | 671.48 | 781.29 | 909.04 | 1,057.69 |
| EBIT (%) | ||||||||||
| Depreciation | 77.74 | 81.17 | 116.94 | 139.56 | 137.88 | 166.92 | 194.21 | 225.97 | 262.92 | 305.91 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Total Cash | 1,100.42 | 1,070.73 | 3,693.81 | 3,827.13 | 4,967.97 | 4,143.93 | 4,821.56 | 5,610 | 6,527.36 | 7,594.73 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 89.19 | 92.24 | 103.95 | 124.82 | 153.95 | 171.72 | 199.80 | 232.48 | 270.49 | 314.72 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 6.33 | 7.64 | 15.73 | 22.24 | 28.46 | 22.72 | 26.43 | 30.75 | 35.78 | 41.63 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -29.63 | -46.20 | -48.35 | -65.22 | -58.57 | -74.86 | -87.10 | -101.34 | -117.91 | -137.19 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 67.14 |
|---|---|
| Beta | 0.875 |
| Diluted Shares Outstanding | 397.75 |
| Cost of Debt | |
| Tax Rate | 24.05 |
| After-tax Cost of Debt | 2.21% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.627 |
| Total Debt | 1,105.58 |
| Total Equity | 26,705.07 |
| Total Capital | 27,810.65 |
| Debt Weighting | 3.98 |
| Equity Weighting | 96.02 |
| Wacc |
Build Up Free Cash
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 1,191.83 | 1,399.72 | 1,659.02 | 1,944.14 | 2,182.40 | 2,539.27 | 2,954.50 | 3,437.63 | 3,999.76 | 4,653.81 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 364.59 | 474.73 | 370.53 | 575.15 | 656.47 | 744.03 | 865.70 | 1,007.26 | 1,171.97 | 1,363.61 |
| EBIT | 286.85 | 393.56 | 253.59 | 435.59 | 518.58 | 577.11 | 671.48 | 781.29 | 909.04 | 1,057.69 |
| Tax Rate | 16.08% | 19.44% | 16.18% | 27.58% | 24.05% | 20.67% | 20.67% | 20.67% | 20.67% | 20.67% |
| EBIAT | 240.71 | 317.07 | 212.55 | 315.46 | 393.85 | 457.84 | 532.71 | 619.82 | 721.18 | 839.11 |
| Depreciation | 77.74 | 81.17 | 116.94 | 139.56 | 137.88 | 166.92 | 194.21 | 225.97 | 262.92 | 305.91 |
| Accounts Receivable | - | -3.05 | -11.71 | -20.87 | -29.13 | -17.78 | -28.08 | -32.67 | -38.01 | -44.23 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | 1.31 | 8.09 | 6.51 | 6.22 | -5.74 | 3.71 | 4.32 | 5.03 | 5.85 |
| Capital Expenditure | -29.63 | -46.20 | -48.35 | -65.22 | -58.57 | -74.86 | -87.10 | -101.34 | -117.91 | -137.19 |
| UFCF | 288.82 | 350.30 | 277.53 | 375.45 | 450.25 | 526.38 | 615.46 | 716.10 | 833.20 | 969.45 |
| WACC | ||||||||||
| PV UFCF | 490.07 | 533.47 | 577.89 | 626 | 678.11 | |||||
| SUM PV UFCF | 2,905.54 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.41 |
| Free cash flow (t + 1) | 988.84 |
| Terminal Value | 18,277.99 |
| Present Value of Terminal Value | 12,785.12 |
Intrinsic Value
| Enterprise Value | 15,690.66 |
|---|---|
| Net Debt | -3,862.39 |
| Equity Value | 19,553.05 |
| Shares Outstanding | 397.75 |
| Equity Value Per Share | 49.16 |