CoStar Group Inc., FCFF calculation

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income	369,453)	292,564)	227,128)	314,963)	238,334)
Net noncash charges	314,695)	331,909)	272,864)	229,768)	178,427)
Changes in operating assets and liabilities, net of acquisitions	(205,528)	(154,742)	(13,886)	(86,951)	(81,303)
Net cash provided by operating activities	478,620)	469,731)	486,106)	457,780)	335,458)
Interest paid, net of tax¹	22,745)	22,820)	4,986)	1,610)	1,193)
Proceeds from sale of property and equipment and other assets	30,097)	612)	—)	—)	—)
Purchases of property and equipment and other assets	(58,574)	(65,220)	(48,347)	(46,197)	(29,632)
Free cash flow to the firm (FCFF)	472,888)	427,943)	442,745)	413,193)	307,019)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ See details »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the CoStar Group Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	CoStar Group Inc. FCFF decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

CoStar Group Inc., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Effective Income Tax Rate (EITR)
EITR¹	24.05%	27.58%	16.18%	19.44%	16.08%
Interest Paid, Net of Tax
Interest paid, before tax	29,947)	31,510)	5,948)	1,998)	1,421)
Less: Interest paid, tax²	7,202)	8,690)	962)	388)	228)
Interest paid, net of tax	22,745)	22,820)	4,986)	1,610)	1,193)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ See details »

² 2022 Calculation
Interest paid, tax = Interest paid × EITR
= 29,947 × 24.05% = 7,202

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CoStar Group Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	30,476,681)
Free cash flow to the firm (FCFF)	472,888)
Valuation Ratio
EV/FCFF	64.45
Benchmarks
EV/FCFF, Industry
Industrials	28.18

Based on: 10-K (reporting date: 2022-12-31).

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

CoStar Group Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	25,361,735)	18,292,660)	30,185,814)	23,931,971)	15,576,296)
Free cash flow to the firm (FCFF)²	472,888)	427,943)	442,745)	413,193)	307,019)
Valuation Ratio
EV/FCFF³	53.63	42.75	68.18	57.92	50.73
Benchmarks
EV/FCFF, Industry
Industrials	24.30	28.80	189.49	—	—

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ See details »

² See details »

³ 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 25,361,735 ÷ 472,888 = 53.63

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	CoStar Group Inc. EV/FCFF ratio decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.

CoStar Group Inc. (NASDAQ:CSGP)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical