CBRE Valuation

CBRE Group Inc

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162.120

+0.13(0.080%)1D

Overview
Forecast
Valuation
Earnings

CBRE Relative Valuation

CBRE's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CBRE is overvalued; if below, it's undervalued.

Historical Valuation

CBRE Group Inc (CBRE) is now in the Overvalued zone, suggesting that its current forward PE ratio of 24.40 is considered Overvalued compared with the five-year average of 18.77. The fair price of CBRE Group Inc (CBRE) is between 114.72 to 149.11 according to relative valuation methord. Compared to the current price of 162.12 USD , CBRE Group Inc is Overvalued By 8.73%.

Relative Value

Fair Zone

114.72-149.11

Current Price：162.12

8.73%

Overvalued

24.40

Trailing

Forward

16.71

EV/EBITDA

CBRE Group Inc. (CBRE) has a current EV/EBITDA of 16.71. The 5-year average EV/EBITDA is 12.38. The thresholds are as follows: Strongly Undervalued below 8.60, Undervalued between 8.60 and 10.49, Fairly Valued between 14.28 and 10.49, Overvalued between 14.28 and 16.17, and Strongly Overvalued above 16.17. The current Forward EV/EBITDA of 16.71 falls within the Strongly Overvalued range.

24.25

EV/EBIT

CBRE Group Inc. (CBRE) has a current EV/EBIT of 24.25. The 5-year average EV/EBIT is 19.09. The thresholds are as follows: Strongly Undervalued below 12.13, Undervalued between 12.13 and 15.61, Fairly Valued between 22.57 and 15.61, Overvalued between 22.57 and 26.05, and Strongly Overvalued above 26.05. The current Forward EV/EBIT of 24.25 falls within the Overvalued range.

1.13

CBRE Group Inc. (CBRE) has a current PS of 1.13. The 5-year average PS is 0.87. The thresholds are as follows: Strongly Undervalued below 0.57, Undervalued between 0.57 and 0.72, Fairly Valued between 1.02 and 0.72, Overvalued between 1.02 and 1.17, and Strongly Overvalued above 1.17. The current Forward PS of 1.13 falls within the Overvalued range.

26.53

P/OCF

CBRE Group Inc. (CBRE) has a current P/OCF of 26.53. The 5-year average P/OCF is 16.12. The thresholds are as follows: Strongly Undervalued below 6.14, Undervalued between 6.14 and 11.13, Fairly Valued between 21.12 and 11.13, Overvalued between 21.12 and 26.11, and Strongly Overvalued above 26.11. The current Forward P/OCF of 26.53 falls within the Strongly Overvalued range.

27.80

P/FCF

CBRE Group Inc. (CBRE) has a current P/FCF of 27.80. The 5-year average P/FCF is 20.33. The thresholds are as follows: Strongly Undervalued below 7.51, Undervalued between 7.51 and 13.92, Fairly Valued between 26.74 and 13.92, Overvalued between 26.74 and 33.15, and Strongly Overvalued above 33.15. The current Forward P/FCF of 27.80 falls within the Overvalued range.

CBRE Group Inc (CBRE) has a current Price-to-Book (P/B) ratio of 5.76. Compared to its 3-year average P/B ratio of 3.65 , the current P/B ratio is approximately 57.81% higher. Relative to its 5-year average P/B ratio of 3.58, the current P/B ratio is about 60.63% higher. CBRE Group Inc (CBRE) has a Forward Free Cash Flow (FCF) yield of approximately 2.34%. Compared to its 3-year average FCF yield of 3.15%, the current FCF yield is approximately -25.51% lower. Relative to its 5-year average FCF yield of 4.67% , the current FCF yield is about -49.77% lower.

5.76

P/B

Median3y

3.65

Median5y

3.58

2.34

FCF Yield

Median3y

3.15

Median5y

4.67

Competitors Valuation Multiple

The average P/S ratio for CBRE's competitors is 3.74, providing a benchmark for relative valuation. CBRE Group Inc Corp (CBRE) exhibits a P/S ratio of 1.13, which is -69.83% above the industry average. Given its robust revenue growth of 16.24%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Vesta Real Estate Corporation SAB de CV

7.75

24.23B

JLL.N

Jones Lang LaSalle Inc

Millrose Properties Inc

8.50

5.86B

HHH.N

Howard Hughes Holdings Inc

2.92

-7.97%

4.53B

Performance Decomposition

Market capitalization of CBRE increased by 30.24% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 1.69 to 2.45.

The secondary factor is the Revenue Growth, contributed 16.24%to the performance.

Overall, the performance of CBRE in the past 1 year is driven by Margin Expansion. Which is more sustainable.

16.24%

8.39B → 9.75B

Revenue Growth

44.97%

1.69 → 2.45

Margin Expansion

-30.97%

65.75 → 45.38

P/E Change

30.24%