CoStar Group Inc. (NASDAQ:CSGP)

Market (fair) value of CoStar Group

The market value of the company exhibited a general upward trend over the analyzed period, increasing from approximately $16.8 billion in 2018 to about $30.4 billion in 2022. The value saw significant growth from 2018 to 2020, reaching a peak near $34.1 billion in 2020. However, a notable decline occurred in 2021, where the market value dropped to around $22.2 billion, followed by a recovery in 2022.

Invested capital

Invested capital displayed a consistent upward trajectory throughout the period, growing from approximately $3.3 billion in 2018 to roughly $8.2 billion by the end of 2022. This steady increase suggests ongoing investment in the company's operations or assets across all years without any periods of decline.

Market value added (MVA)

Market value added increased significantly from 2018 to 2020, reflecting strong value creation during this period, going from around $13.5 billion to approximately $27.4 billion. Despite a downturn in 2021—where MVA dropped to about $15.2 billion—the metric rebounded in 2022 to roughly $22.3 billion. This pattern parallels the fluctuations observed in the market value, indicating that although the company maintained invested capital growth, market perceptions of value creation experienced some volatility, especially in 2021.

The financial data reveals several notable trends over the five-year period ending December 31, 2022.

Market Value Added (MVA)

The MVA exhibited considerable fluctuations, initially increasing substantially from approximately 13.5 billion US dollars in 2018 to a peak of around 27.4 billion US dollars in 2020. This was followed by a marked decrease in 2021, with the MVA dropping to approximately 15.2 billion US dollars. However, in 2022, the MVA rebounded to about 22.3 billion US dollars, indicating recovery though remaining below its 2020 peak.

Invested Capital

This metric showed consistent growth throughout the period, rising from roughly 3.3 billion US dollars in 2018 to about 8.2 billion US dollars in 2022. The most significant increase occurred between 2019 and 2020, where invested capital nearly doubled, suggesting considerable investment activity or capital deployment during that interval.

MVA Spread Ratio

The MVA spread ratio demonstrated significant volatility. It reached its highest point in 2019 at over 577%, followed by a steep decline to just above 216% in 2021. The ratio improved in 2022 to approximately 272%, yet it remained well below the elevated levels seen in 2018 and 2019. This pattern may reflect varying efficiency or effectiveness in generating market value relative to invested capital, with a notable contraction during 2021.

Overall, the data suggests a phase of aggressive investment up to 2020 accompanied by peak market value creation, followed by a period of contraction or correction in market value added. Although invested capital steadily increased throughout, the efficiency in translating that investment into market value appears to have weakened particularly in 2021, with partial recovery observed in the subsequent year.

The financial data exhibits several notable trends over the analyzed period. The market value added (MVA), expressed in thousands of US dollars, generally shows an increasing trajectory from the beginning of the period until 2020, reaching a peak before experiencing a decline in 2021, and then some recovery in 2022. Specifically, the MVA rose from approximately 13.5 billion in 2018 to around 27.4 billion in 2020, fell sharply to about 15.2 billion in 2021, and rebounded to roughly 22.3 billion in 2022. This pattern indicates a period of strong growth followed by a significant downturn and partial recovery.

Adjusted revenues demonstrate a consistent upward trend throughout the period. Starting at nearly 1.2 billion US dollars in 2018, revenues increased steadily each year, reaching approximately 2.19 billion by the end of 2022. This progression suggests sustained top-line growth without interruptions or reversals.

The MVA margin, which reflects the market value added as a percentage of revenues, mirrors the volatility observed in the MVA figures with an initial increase, a mid-period peak, followed by a considerable decline and subsequent partial recovery. The margin rose from about 1127.6% in 2018 to a high of roughly 1646.0% in 2020, dropped significantly to around 774.7% in 2021, and then increased again to approximately 1016.6% in 2022.

Market Value Added (MVA)

Generally increased from 2018 to 2020, peaking in 2020.

Experienced a steep decline in 2021.

Recovered partially in 2022 but did not reach the 2020 peak levels.

Adjusted Revenues

Showed consistent year-over-year growth throughout the entire period.

Reached the highest value in 2022 at more than 2.18 billion US dollars.

MVA Margin

Increased significantly up to 2020, indicating improved efficiency or value generation relative to revenues.

Dropped sharply in 2021, reflecting a decrease in market value added relative to revenue.

Partial recovery in 2022, though remaining below the peak achieved in 2020.

Overall, the data indicate that despite consistent revenue growth, the company faced volatility in market value added and associated profitability metrics, particularly in 2021. The partial rebound in 2022 suggests potential stabilization, though it remains below the earlier peak performance levels observed in 2020.