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CSGP (CoStar Group) Altman Z-Score : 12.21 (As of Oct. 31, 2024)


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What is CoStar Group Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 12.31 is strong.

CoStar Group has a Altman Z-Score of 12.21, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for CoStar Group's Altman Z-Score or its related term are showing as below:

CSGP' s Altman Z-Score Range Over the Past 10 Years
Min: 6.31   Med: 13.52   Max: 34.18
Current: 12.31

During the past 13 years, CoStar Group's highest Altman Z-Score was 34.18. The lowest was 6.31. And the median was 13.52.


CoStar Group Altman Z-Score Historical Data

The historical data trend for CoStar Group's Altman Z-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

CoStar Group Altman Z-Score Chart

CoStar Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 30.71 15.42 13.47 13.75 15.02

CoStar Group Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.56 15.02 15.39 12.25 12.60

Competitive Comparison of CoStar Group's Altman Z-Score

For the Real Estate Services subindustry, CoStar Group's Altman Z-Score, along with its competitors' market caps and Altman Z-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


CoStar Group's Altman Z-Score Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, CoStar Group's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where CoStar Group's Altman Z-Score falls into.



CoStar Group Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

CoStar Group's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.5094+1.4*0.2498+3.3*0.0282+0.6*18.1118+1.0*0.2918
=12.21

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Sep. 2024:
Total Assets was $9,139 Mil.
Total Current Assets was $5,195 Mil.
Total Current Liabilities was $539 Mil.
Retained Earnings was $2,283 Mil.
Pre-Tax Income was 77.7 + 35.9 + 11.5 + 132.8 = $258 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0 Mil.
Revenue was 692.6 + 677.8 + 656.4 + 640.1 = $2,667 Mil.
Market Cap (Today) was $29,841 Mil.
Total Liabilities was $1,648 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(5195.1 - 539.4)/9138.7
=0.5094

X2=Retained Earnings/Total Assets
=2283.2/9138.7
=0.2498

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(257.9 - 0)/9138.7
=0.0282

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=29840.954/1647.6
=18.1118

X5=Revenue/Total Assets
=2666.9/9138.7
=0.2918

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

CoStar Group has a Altman Z-Score of 12.21 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


CoStar Group  (NAS:CSGP) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


CoStar Group Altman Z-Score Related Terms

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CoStar Group Business Description

Traded in Other Exchanges
Address
1331 L Street, Northwest, WA, USA, 20005
CoStar Group is a leading provider of commercial real estate data and marketplace listing platforms. Its data offering contains in-depth analytical information on over 5 million commercial real estate properties related to various subsectors including office, retail, hotels, multifamily, healthcare, industrial, self-storage, and data centers. It operates many flagship brands such as CoStar Suite, LoopNet, Apartments.com, BizBuySell, and Lands of America, with more than 80% of its revenue classified as subscription-based. The company recently expanded its presence in Canada, the United Kingdom, Spain, and France.
Executives
John W Hill director 1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
Lisa Ruggles officer: Senior VP, Global Research C/O COSTAR GROUP, INC., 1331 L STREET NW, WASHINGTON DC 20005
Michael J Desmarais officer: Chief Human Resources Officer C/O COSTAR GROUP, INC., 1331 L STREET NW, WASHINGTON DC 20005
Scott T Wheeler officer: Chief Financial Officer C/O COSTAR GROUP, INC., 1331 L STREET NW, WASHINGTON DC 20005
Christopher J Nassetta director 77 WEST WACKER DRIVE, SUITE 3900, CHICAGO IL 60601
Angelique G. Brunner director C/O CHESAPEAKE LODGING TRUST, 4300 WILSON BOULEVARD, SUITE 625, ARLINGTON VA 22203
Frank Simuro officer: Chief Technology Officer C/O COSTAR GROUP, INC., 1331 L STREET NW, WASHINGTON DC 20005
Frederick G. Saint officer: President, Marketplaces LOOPNET, INC., 181 W. HUNTINGTON DRIVE, SUITE 208, MONROVIA CA 91016
Andrew C Florance director, officer: President and CEO C/O COSTAR GROUP INC, 1331 L STREET, NW, WASHINGTON DC 20005
Michael R Klein director 2001 K STREET, N.W., SUITE 206, WASHINGTON DC 20006
Gene Boxer officer: General Counsel and Secretary 14 WESLEY STREET, HAMILTON D0 HM11
Kaplan Laura Cox director C/O COSTAR GROUP, INC., 1331 L STREET NW, WASHINGTON DC 20005
Matthew Linnington officer: Executive Vice President Sales C/O COSTAR GROUP, INC., 1331 L STREET NW, WASHINGTON DC 20005
David Jay Steinberg director C/O COSTAR GROUP, INC., 1331 L STREET, NW, WASHINGTON DC 20005
Robert W Musslewhite director 2445 M STREET, NW, WASHINGTON DC 20037