CoStar Group (CSGP) Stock Could Be 38.6% Undervalued After Its Recent Selloff

CoStar Group (CSGP) has seen a significant stock pullback of 11% in the last month and 30% in three months, leading some to believe it is undervalued by 38.6% with a fair value of $49.05 compared to its recent close of $30.12. This valuation is based on expectations of continued digitalization, strong growth in real estate platforms, and international expansion, though concerns remain regarding heavy spending on Homes.com and rising competition. While the discounted cash flow model suggests undervaluation, its current P/S ratio is still above the industry average, presenting mixed signals for investors.