Using the PEG framework with analyst consensus forward EPS growth of 25.0%, CoStar Group, Inc. has a fair value of $32.42 based on NTM EPS (FY2026) of $1.30. The current PEG ratio is 0.16.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 197.8% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $1.30 |
| Fair Value | $32.42 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $0.02 | — | — |
| FY2026E | $1.30 | +7711.3% | 14 |
| FY2027E | $1.77 | +36.3% | 14 |
| FY2028E | $2.21 | +25.0% | 11 |
| FY2029E | $3.00 | +36.0% | 5 |
| FY2030E | $3.89 | +29.5% | 5 |
5Y Forward EPS CAGR: 197.8%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.
| Year | Net Income | EPS | YoY |
|---|
| FY2021 | $292.6M | $0.74 | — |
| FY2022 | $369.5M | $0.93 | +25.7% |
| FY2023 | $374.7M | $0.92 | -1.1% |
| FY2024 | $138.7M | $0.34 | -63.0% |
| FY2025 | $7.0M | $0.02 | -95.1% |
4Y Historical EPS CAGR: -61.3%