One-glance verdict
Overvalued
$54.19 our estimate vs market $136.53
Wall Street consensus: $182.92 (237.5% higher than our fair-value estimate)
152% above our estimate, beyond the bull case
Fundamentals snapshot
CBRE Group, Inc.
CBRE · NYQ · Real Estate · Real Estate Services
Current price
$136.53
52-week range
$121.69 - $174.27
Market cap
$39.54B
Balance sheet
Stretched
25.70x Strong cushion
Net debt $9.32B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 7.6% last year.
- Reward Returns 15.8% on equity, ahead of 83% of its peers.
- Risk Net debt grew 273.7% over 3 years.
- Risk Insider ownership is only 0.5% (peer median: 2.4%).
What this company does
CBRE Group, Inc.
CBRE Group is a global company that acts as a full-service partner for commercial real estate, which includes properties like office buildings, warehouses, and retail stores. They make most of their money from fees for services like helping companies lease or buy space, managing the day-to-day operations of buildings, and offering investment advice. Because they are involved in so many parts of the property market, their performance can be a good indicator of the overall health of the economy.
How the company got here
CBRE's story begins in San Francisco in 1906, starting as a small real estate firm. Over many decades, it grew by helping clients buy, sell, and manage commercial properties, expanding across the United States. A series of major acquisitions (buying other companies) dramatically shaped the company, including the purchase of Richard Ellis International, which led to the name CBRE. Other key moves included buying Trammell Crow Company, a large developer, and the real estate investment arm of ING Group, which significantly expanded its ability to manage investments for large institutions. These steps transformed it from a U.S.-based company into a global leader in commercial real estate services.
What it actually does
Think of CBRE as a one-stop shop for businesses and investors dealing with commercial properties—like office buildings, warehouses, and retail centers. If a company needs to find and lease a new office, CBRE acts as their agent. If an investor wants to buy a shopping mall, CBRE can handle the sale, arrange financing (the process of getting a loan), and even manage the property afterward. They also provide services like property appraisals (estimating a property's value) and managing building renovations or construction projects.
Advisory Services
This is the part of CBRE that most people think of as traditional real estate work, and it brings in a very large portion of the company's revenue. This segment helps clients buy, sell, and lease all kinds of commercial properties. For example, they represent a company looking for new office space or a landlord trying to fill a vacant storefront. They also provide valuation services (determining what a property is worth) and help clients get loans for their real estate deals.
Building Operations & Experience
This segment focuses on the day-to-day management of buildings for property owners and corporate tenants. This includes services like building maintenance, managing energy use, and overseeing other operational needs for large companies in their facilities worldwide. A newer part of this business includes providing flexible office solutions, similar to co-working spaces, for companies that don't want a traditional long-term lease. This business generates steady, recurring revenue (income that comes in consistently from ongoing contracts).
Project Management
When a company needs to build a new facility, renovate an existing office, or manage a complex construction project, this is the division they call. A significant part of this segment is a company called Turner & Townsend, which CBRE acquired. They handle everything from initial planning and cost management to overseeing the actual construction work, ensuring projects are finished on time and on budget. This segment has become a major contributor to CBRE's overall business.
Real Estate Investments
This is CBRE's money management arm, and it operates as two main businesses. One part, called CBRE Investment Management, manages real estate investments for large institutional investors like pension funds and insurance companies. The other part, known as Trammell Crow Company, develops new properties from the ground up, such as building new warehouses or office buildings. While this is the smallest segment by revenue, it allows the company to participate directly in the investment and development side of real estate.
What management is betting on now
CBRE's leadership is focused on growing businesses that provide more stable and predictable income, like managing facilities and investment funds. They are also investing heavily in technology and data analytics (using data to find insights) to give their clients a competitive edge. Another key priority is sustainability, helping clients make their buildings more environmentally friendly and energy-efficient, which is an area of growing demand. The company also continues to make strategic acquisitions (buying other companies) to add new capabilities, especially in high-growth areas like managing infrastructure for data centers.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$494.00M
FY2024 Q4
$1.25B
FY2025 Q1
$-610.00M
FY2025 Q2
$-17.00M
FY2025 Q3
$743.00M
FY2025 Q4
$1.08B
FY2026 Q1
$-906.00M
FY2026 Q2
$24.00M
Revenue
$11.23B
Net income
$204.00M
Diluted EPS
0.69
Operating cash flow
$138.00M
Free cash flow
$24.00M
Fetching…
Sources
Revenue
$10.53B
Net income
$318.00M
Diluted EPS
1.07
Operating cash flow
$-825.00M
Free cash flow
$-906.00M
Fetching…
Sources
Revenue
$11.63B
Net income
$416.00M
Diluted EPS
1.38
Operating cash flow
$1.22B
Free cash flow
$1.08B
Fetching…
Sources
Revenue
$10.26B
Net income
$363.00M
Diluted EPS
1.21
Operating cash flow
$827.00M
Free cash flow
$743.00M
Fetching…
Sources
Revenue
$9.75B
Net income
$215.00M
Diluted EPS
0.72
Operating cash flow
$57.00M
Free cash flow
$-17.00M
Fetching…
Sources
Revenue
$8.91B
Net income
$163.00M
Diluted EPS
0.54
Operating cash flow
$-546.00M
Free cash flow
$-610.00M
Fetching…
Sources
Revenue
$10.40B
Net income
$487.00M
Diluted EPS
1.58
Operating cash flow
$1.34B
Free cash flow
$1.25B
Fetching…
Sources
Revenue
$9.04B
Net income
$225.00M
Diluted EPS
0.73
Operating cash flow
$573.00M
Free cash flow
$494.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $54.19 vs current price $136.53
Wall Street consensus is the average analyst price target: $182.92 (237.5% higher than our fair-value estimate).
Our most-likely fair value is $54.19 a share — about 60.3% below today's price of $136.53, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $9.3B. Interest coverage 25.7x.
Net debt
$9.32B
Interest coverage
25.70x
CBRE Group, Inc.'s profit covers its interest bill about 25.7 times over. which is stronger than every peer shown here.
Stretched
Worse cushion
Baseline
Better cushion
CBRE
BASELINE
CBRE Group, Inc.
Total debt $10.81B Interest coverage 25.70x This is the baseline the peer rows are being compared against.
Total debt $3.22B Interest coverage 10.93x -57% vs CBRE Carries about 2.4x less debt cushion than CBRE.
Total debt $3.31B Interest coverage 4.87x -81% vs CBRE Carries about 5.3x less debt cushion than CBRE.
Total debt $3.03B Interest coverage 2.12x -92% vs CBRE Carries about 12.1x less debt cushion than CBRE.
Total debt $2.27B Interest coverage 7.20x -72% vs CBRE Carries about 3.6x less debt cushion than CBRE.
Total debt $1.56B Interest coverage 4.75x -82% vs CBRE Carries about 5.4x less debt cushion than CBRE.
What you should know
The case for and against CBRE
3 Rewards
3 Risks
Rewards
-
Revenue grew 7.6% last year.
-
Returns 15.8% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 273.7% over 3 years.
-
Insider ownership is only 0.5% (peer median: 2.4%).
-
Operating margin compressed from 4.3% to 3.6% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
31.24x
Forward P/E
15.01x
P/B
4.71x
P/S
0.90x
EV/EBITDA
22.42x
PEG ratio
0.73x
Profitability
How much profit each dollar creates
Gross margin
18.6%
Operating margin
3.6%
Net margin
3.0%
ROE
15.8%
ROA
2.6%
Health
Liquidity and balance-sheet strength
Debt / equity
1.18x
Current ratio
1.14x
Quick ratio
0.97x
Total debt
$10.81B
Total cash
$1.49B
Growth
How the business has been compounding
Revenue TTM
$43.64B
Revenue 5Y CAGR
10.0%
EPS TTM
4.37
EPS 5Y CAGR
-3.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.36B
Free CF TTM
$1.19B
FCF margin
2.7%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2024-04-19