Price to Operating Profit (P/OP)
since 2005
Calculation
CoStar Group Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Income from operations1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 22, 2023 | 65.06 | = | 72.13 | ÷ | 1.11 | 1.11 | = | 450,949 | ÷ | 406,772,431 | |
| Feb 23, 2022 | 48.88 | = | 53.50 | ÷ | 1.09 | 1.09 | = | 432,337 | ÷ | 394,987,704 | |
| Feb 24, 2021 | 113.95 | = | 83.62 | ÷ | 0.73 | 0.73 | = | 289,202 | ÷ | 394,104,410 | |
| Feb 26, 2020 | 68.77 | = | 68.23 | ÷ | 0.99 | 0.99 | = | 363,547 | ÷ | 366,447,340 | |
| Feb 28, 2019 | 60.96 | = | 45.75 | ÷ | 0.75 | 0.75 | = | 273,564 | ÷ | 364,518,290 | |
| Feb 23, 2018 | 73.70 | = | 35.49 | ÷ | 0.48 | 0.48 | = | 173,816 | ÷ | 360,947,010 | |
| Feb 24, 2017 | 45.29 | = | 20.13 | ÷ | 0.44 | 0.44 | = | 144,905 | ÷ | 325,996,960 | |
| Feb 26, 2016 | 508.64 | = | 17.92 | ÷ | 0.04 | 0.04 | = | 11,455 | ÷ | 325,135,360 | |
| Feb 26, 2015 | 78.26 | = | 19.59 | ÷ | 0.25 | 0.25 | = | 80,878 | ÷ | 323,118,660 | |
| Feb 20, 2014 | 97.50 | = | 18.30 | ÷ | 0.19 | 0.19 | = | 54,154 | ÷ | 288,535,590 | |
| Mar 1, 2013 | 106.79 | = | 10.34 | ÷ | 0.10 | 0.10 | = | 27,440 | ÷ | 283,390,280 | |
| Feb 23, 2012 | 70.60 | = | 6.04 | ÷ | 0.09 | 0.09 | = | 21,771 | ÷ | 254,458,640 | |
| Feb 25, 2011 | 52.14 | = | 5.72 | ÷ | 0.11 | 0.11 | = | 22,775 | ÷ | 207,617,990 | |
| Feb 26, 2010 | 25.47 | = | 3.94 | ÷ | 0.15 | 0.15 | = | 31,835 | ÷ | 205,814,620 | |
| Feb 24, 2009 | 13.09 | = | 2.64 | ÷ | 0.20 | 0.20 | = | 39,788 | ÷ | 197,294,190 | |
| Feb 29, 2008 | 45.25 | = | 4.15 | ÷ | 0.09 | 0.09 | = | 17,852 | ÷ | 194,642,680 | |
| Feb 28, 2007 | 63.75 | = | 4.69 | ÷ | 0.07 | 0.07 | = | 14,081 | ÷ | 191,385,880 | |
| Mar 7, 2006 | 130.75 | = | 5.14 | ÷ | 0.04 | 0.04 | = | 7,342 | ÷ | 186,768,140 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of CoStar Group Inc. Annual Report.
The financial data indicates a long-term expansion in both market valuation and operational profitability, though this growth has been characterized by significant periods of volatility in the valuation multiples.
- Share Price Trajectory
- A prolonged growth cycle is evident, starting from a low of 2.64 US$ in 2009 and peaking at 83.62 US$ in 2021. While the price remained relatively stagnant between 2006 and 2012, a period of rapid acceleration occurred between 2013 and 2021. A notable correction occurred in 2022, where the price dropped to 53.50 US$, followed by a partial recovery to 72.13 US$ in 2023.
- Operating Profit Per Share Evolution
- Operating profit per share demonstrated a general upward trend, rising from 0.04 US$ in 2006 to 1.11 US$ by 2023. Growth was incremental until 2015, followed by a sharp, anomalous decline to 0.04 US$ in 2016. Post-2016, a strong recovery phase began, with operating profit per share increasing consistently from 0.44 US$ in 2017 to exceed 1.00 US$ annually from 2022 onwards.
- Price to Operating Profit (P/OP) Ratio Analysis
- The P/OP ratio exhibited extreme fluctuations throughout the period. An initial decline from 130.75 in 2006 to a low of 13.09 in 2009 suggests a period where the market valuation contracted faster than operating profits. The most significant anomaly occurred in 2016, where the ratio spiked to 508.64, driven by the collapse in operating profit per share rather than a surge in share price. In the final years of the sequence, the ratio stabilized significantly, fluctuating between 48.88 and 113.95, indicating a more normalized relationship between market price and operating performance.
Overall, the data reflects a transition from a low-profit, high-volatility valuation phase to a more mature operational state characterized by higher absolute profits and a more consistent, albeit still premium, valuation multiple.
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