Why Steve Price’s arrival at Ten-X matters for CoStar Group

CoStar Group (CSGP) is back in focus after appointing Steve Price as President of Ten-X, its digital commercial real estate auction platform, which is putting fresh leadership attention on this part of the business.

Price previously held senior roles at Auction.com, where Ten-X was housed before CoStar Group acquired the platform in 2020. Investors who follow CoStar may now look more closely at how Ten-X fits within the company’s broader data and marketplace ecosystem.

At a share price of US$31.35, CoStar Group has seen a 5.27% 1 month share price gain, yet the share price is down 52.28% year to date and the 1 year total shareholder return has declined 64.44%. This suggests sentiment has cooled even as the Ten-X leadership change adds a fresh talking point for longer term investors.

If this leadership move has you thinking more broadly about where the next opportunity might come from, it could be worth scanning 21 top founder-led companies

Bulls see Steve Price’s Ten-X experience as a catalyst for CoStar Group’s auction platform. Bears point to the steep share price pullback and value score of 3. Which side does the current valuation lean toward next?

Most Popular Narrative: 29.5% Undervalued

CoStar Group’s most followed narrative puts fair value at $44.45 versus the last close of $31.35, which frames the current discount as material and worth understanding in more detail.

Major investments in residential real estate, international expansion, and advanced analytics are unlocking new revenue streams and accelerating long-term growth opportunities.

Integration of AI-driven features, Matterport's 3D technology, and advanced analytics across platforms is increasing user engagement, enabling higher-value product offerings and upsells, and improving client retention, positioning the company for elevated margins and increased net income over time.

Curious what kind of revenue mix, margin lift, and earnings power would need to line up for that fair value on CoStar Group to make sense? The narrative leans on a specific revenue growth path, a step up in profitability, and a premium future earnings multiple that is usually reserved for companies seen as long term compounders.

Result: Fair Value of $44.45 (UNDERVALUED)

However, CoStar Group’s story can change quickly if aggressive Homes.com spending fails to translate into traction, or if weaker commercial activity keeps pressuring net new bookings.

Another View on CoStar Group’s Valuation

The DCF narrative on CoStar Group points to a fair value of $44.45 at the consensus level, which frames the current $31.35 price as materially below that target. Yet CoStar trades on a P/S ratio of 3.6x versus 2.4x for the US Real Estate industry and 1.4x for peers, and the fair ratio sits at 4x. That mix of discount to fair value and premium to industry raises a simple question: Is the gap a risk signal or a potential opportunity if the narrative plays out?

Next Steps

With sentiment on CoStar Group clearly mixed, it makes sense to move fast. Review the data first hand and decide where you stand by checking the 2 key rewards and 1 important warning sign.

Looking for more investment ideas beyond CoStar Group?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.