CBRE Group, Inc.CBRENYSE
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Executive Summary
Latest Data: Dec 2025Real Estate•Real Estate - Services
$45.2BLarge Cap
A large-scale business, operating profitably, growing steadily priced at a premium.
Key Investment Themes
Steady grower (13% revenue growth)
Premium valuation (39.0x P/E)
Business Narrative
CBRE Group, Inc. operates as a commercial real estate services and investment company worldwide. It operates through three segments: Advisory Services, Global Workplace Solutions, and Real Estate Investments segments.
Real EstateReal Estate - Services
Capital Intensive
medium confidence
Revenue Mix
Single segment business
Bull Case
- +Consistent revenue growth above market average
Company at a Glance
Business Performance
Key Highlights
Positive Signals
- Conservative balance sheet with low debt levels
Watch Areas
- Thin profit margins under 5%
- Free cash flow declining despite positive earnings
- Trading 30% above 5-year average valuation
Financial Health
Liquidity
Watch
Current Ratio1.09
1.0-2.0 = Adequate
Cash & Equivalents$1.9B
Leverage
Strong
Debt / Equity0.37
<1.0 = Low leverage
Interest Coverage5.80x
≥5x = Comfortable
Efficiency
Concern
Return on Equity13.0%
8-15% = Fair
Return on Capital5.3%
<8% = Weak
Valuation Assessment
Market Cap
$45.2B
Large Cap
P/E (TTM)
39.0x
Elevated
vs 5Y avg: 29.9x (+30%)
P/S (TTM)
1.1x
Discounted
vs 5Y avg: 1.1x (+5%)
EV/EBITDA
18.7x
In-line
vs 5Y avg: 17.8x
(+5%)
(+5%)
P/E Historical Range (5Y)
Min: 17.7xAvg: 29.9xNow: 39.0xMax: 41.5x
P/S Historical Range (5Y)
Min: 0.8xAvg: 1.1xNow: 1.1xMax: 1.3x
EV/EBITDA Historical Range (5Y)
Min: 13.3xAvg: 17.8xNow: 18.7xMax: 20.8x
Valuation Corridor
EXPENSIVE
PEG Ratio
1.71
P/E 39.0x / Growth 22.8% = Reasonable
FCF Yield
0.3%
vs Cost of Capital ~8.0% = Weak
P/E Corridor (5Y)39.0x
17.7xFair: 18.5x-41.3x41.5x
P/S Corridor (5Y)1.1x
0.8xFair: 0.9x-1.3x1.3x
EV/EBITDA Corridor (5Y)18.7x
13.3xFair: 15.0x-20.6x20.8x
Detailed Financials
Comprehensive financial statement data for deep analysis
| Metric | Dec 21 | Dec 22 | Dec 23 | Dec 24 | Dec 25 |
|---|---|---|---|---|---|
| Return on Equity | - | - | - | - | - |
| Return on Invested Capital | - | - | - | - | - |
| Gross Margin | 22.2% | 21.5%↓3.4% | 19.7%↓8.2% | 19.6%↓0.5% | 15.0%↓23.7% |
| Operating Margin | 5.9% | 4.9%↓16.9% | 3.5%↓28.7% | 4.0%↑13.0% | 3.2%↓19.2% |
| Net Margin | 6.6% | 4.6%↓31.1% | 3.1%↓32.4% | 2.7%↓12.3% | 2.9%↑5.4% |
| Earnings Yield | - | - | - | - | - |
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