Discounted Cash Flow (DCF) Analysis Levered

CoStar Group, Inc. (CSGP)

$96.15

+0.97 (+1.02%)
All numbers are in Millions, Currency in USD
Stock DCF: 62.12 | 96.15 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 1,399.721,659.021,944.142,182.402,4552,826.063,253.203,744.904,310.914,962.48
Revenue (%)
Operating Cash Flow 457.78486.11469.73478.62489.50723.68833.06958.971,103.911,270.76
Operating Cash Flow (%)
Capital Expenditure -46.20-48.35-65.22-58.57-25.30-75.08-86.43-99.49-114.53-131.84
Capital Expenditure (%)
Free Cash Flow 411.58437.76404.51420.05464.20648.60746.63859.48989.381,138.92

Weighted Average Cost Of Capital

Share price $ 96.15
Beta 0.829
Diluted Shares Outstanding 406.90
Cost of Debt
Tax Rate 25.25
After-tax Cost of Debt 14.38%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.269
Total Debt 1,110.40
Total Equity 39,123.43
Total Capital 40,233.83
Debt Weighting 2.76
Equity Weighting 97.24
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 1,399.721,659.021,944.142,182.402,4552,826.063,253.203,744.904,310.914,962.48
Operating Cash Flow 457.78486.11469.73478.62489.50723.68833.06958.971,103.911,270.76
Capital Expenditure -46.20-48.35-65.22-58.57-25.30-75.08-86.43-99.49-114.53-131.84
Free Cash Flow 411.58437.76404.51420.05464.20648.60746.63859.48989.381,138.92
WACC
PV LFCF 598.12634.93674.01715.50759.53
SUM PV LFCF 3,382.09

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.44
Free cash flow (t + 1) 1,184.48
Terminal Value 26,677.46
Present Value of Terminal Value 17,790.86

Intrinsic Value

Enterprise Value 21,172.95
Net Debt -4,105.50
Equity Value 25,278.45
Shares Outstanding 406.90
Equity Value Per Share 62.12