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1. Company Snapshot

1.a. Company Description

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.


The Advisory Services segment provides strategic advice and execution to owners, investors, and occupiers of real estate in connection with leasing; property sales and mortgage services under the CBRE Capital Markets brand; property and project management services, including construction management, marketing, building engineering, accounting, and financial services for owners of and investors in office, industrial, and retail properties; and valuation services that include market value appraisals, litigation support, discounted cash flow analyses, and feasibility studies, as well as consulting services, such as property condition reports, hotel advisory, and environmental consulting.The Global Workplace Solutions segment offers facilities management, project management, and transaction management services.The Real Estate Investments segment provides investment management services under the CBRE Investment Management brand to pension funds, insurance companies, sovereign wealth funds, foundations, endowments, and other institutional investors; development services under the Trammell Crow Company brand primarily to users of and investors in commercial real estate; and flexible-space solutions under the CBRE Hana brand.


The company was founded in 1906 and is headquartered in Dallas, Texas.

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1.b. Last Insights on CBRE

CBRE Group's recent performance was driven by strong Q2 earnings, with revenue up 16% to $9.8 billion and core EPS up 47% to $1.19. The company's resilient business model, diversification across property types and geographic markets, and focus on outsourcing real estate services have contributed to its growth. CBRE's capital-light model and strong balance sheet support continued growth and strategic investments. With a $1.4 billion net cash flow from operations and nearly $1.3 billion free cash flow, the company is well-positioned for future growth. Initiated with a 'Buy' rating by some analysts.

1.c. Company Highlights

2. CBRE's Q3 2025 Earnings: A Strong Performance Across the Board

CBRE's third-quarter 2025 earnings report was outstanding, with all four segments delivering robust growth and operating leverage, surpassing expectations. Core EPS grew 34% to $1.61, beating estimates of $1.46, while core EBITDA rose 19%. Revenue reached nearly $7 billion, driven by a 40% surge in data center revenue to $700 million, accounting for about 10% of overall EBITDA. The company's strong financial performance was also reflected in its free cash flow, expected to reach approximately $1.8 billion for the year, with net leverage at 1.2 turns at quarter-end.

Publication Date: Oct -24

📋 Highlights
  • Overall Growth:: All four segments delivered strong growth, with core EPS up 34%, core EBITDA up 19%, and revenue reaching $7 billion.
  • Data Center Surge:: Data center revenue surged 40% to $700 million, contributing 10% of total EBITDA.
  • Geographic Strength:: Japan and India combined revenue grew over 30% to $400 million.
  • EPS Guidance Raised:: Full-year core EPS outlook increased to $6.25–$6.35, reflecting a 24% growth at midpoint.
  • Cash Flow & Leverage:: Free cash flow expected at $1.8 billion, with net leverage at 1.2x, and $900 million in embedded development profits over five years.

Segment Performance

In Advisory Services, revenue rose 16%, led by leasing and sales growth. Global leasing revenue increased 17%, while U.S. industrial leasing grew 27%. Property sales revenue jumped 28%, driven by strength in office, industrial, and data centers. The Building Operations & Experience segment saw 11% revenue growth, driven by work for data center hyperscalers and new client wins. Project Management revenue increased 19%, with broad-based double-digit growth supported by the U.K., Middle East, and North America.

Growth Drivers

The company's data center monetization is expected to continue growing, reaching 10% of earnings this year and more next year. The growth is driven by various service lines, including data center land investments, project management, and cost consultancy. CBRE has a significant pipeline of data center projects, with a focus on building sustainable businesses that will endure through the cycle. The company's relationship with occupiers is evolving, with a focus on creating better touchpoints and driving wallet share gains.

Valuation and Outlook

With a current P/E Ratio of 39.49 and EV/EBITDA of 22.6, the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 9.5%. The company's strong pipeline and confidence in the fourth-quarter outlook suggest continued growth, with comps potentially normalizing in certain business lines. CBRE's clients are recognizing the benefits of the company's integrated businesses, leading to increased new business wins, particularly with existing clients who are now giving the company bigger and more complex projects.

Future Prospects

The facilities management business has an expanding total addressable market (TAM), driven by growth in data centers, government work, and other areas. CBRE believes it can continue to expand its TAM and grow its market share. The company's data center development business is constrained by access to power, but CBRE is well-positioned to secure land and entitlements, and work with utility authorities to gain power. The leasing business is seeing broad-based activity, with a focus on Class A and Class A-plus premier workspaces, as well as new development with robust leasing.

3. NewsRoom

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Is it Wise to Retain CBRE Group Stock in Your Portfolio Now?

Nov -27

Source: zacks.com

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CBRE Group, Inc. $CBRE Stake Raised by American Century Companies Inc.

Nov -26

Source: defenseworld.net

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CBRE Group, Inc. (CBRE) Presents at J.P. Morgan 2025 Ultimate Services Investor Conference Transcript

Nov -19

Source: seekingalpha.com

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AGF Management Ltd. Sells 4,214 Shares of CBRE Group, Inc. $CBRE

Nov -12

Source: defenseworld.net

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Southern Nevada Expands Economic Momentum with $9.2M+ in Capital Investment and Nearly 325 New Jobs

Nov -11

Source: prnewswire.com

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CBRE Group, Inc. to Present at the J.P. Morgan 2025 Ultimate Services Investor Conference

Nov -10

Source: businesswire.com

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CBRE Group, Inc. Announces Pricing of $750 Million Senior Notes Due 2033

Nov -05

Source: businesswire.com

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World Investment Advisors Buys New Stake in CBRE Group, Inc. $CBRE

Nov -05

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.30%)

6. Segments

Global Workplace Solutions

Expected Growth: 4.8%

Strong demand for integrated real estate and facilities management services from corporate occupiers drives growth. CBRE Group, Inc. benefits from its global presence, diversified client base, and increasing outsourcing trends.

Advisory Services

Expected Growth: 4.5%

Driven by increasing demand for tech and healthcare companies, CBRE's Advisory Services segment is expected to grow. Strong occupier demand, coupled with CBRE's expertise, will drive growth in this segment.

Real Estate Investments

Expected Growth: 10.2%

Increasing demand for real estate investment management solutions from institutional investors, driven by the need for diversification and long-term returns, will drive CBRE Group's Real Estate Investments segment growth.

Corporate,other and eliminations

Expected Growth: 4.5%

CBRE's corporate office, other business units and eliminations of intersegment revenues are driven by the growing demand for digital and technology-enabled real estate solutions, increasing outsourcing of non-core functions by occupiers, and the company's strategic acquisitions and investments in emerging markets and service lines.

7. Detailed Products

Advisory & Transaction Services

Provides strategic advice and execution for property owners, investors, and occupiers across all asset classes

Global Workplace Solutions

Delivers integrated facility management, project management, and transaction services to corporate occupiers

Global Investor Services

Provides investment sales, debt and structured finance, and investment management services to investors

Occupier Services

Offers a range of services to occupiers, including strategic consulting, transaction management, and facilities management

Property Management

Provides property management services to property owners and investors

Project Management

Delivers project management services to property owners, investors, and occupiers

Valuation & Advisory Services

Provides valuation, appraisal, and advisory services to property owners, investors, and lenders

Capital Markets

Provides investment sales, debt and structured finance, and investment management services to investors

8. CBRE Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for CBRE Group, Inc. is medium due to the presence of alternative real estate services providers, but the company's strong brand and global presence mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for CBRE Group, Inc. due to the company's diversified client base and the lack of concentration of clients.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for CBRE Group, Inc. due to the presence of multiple suppliers, but the company's scale and global presence give it some bargaining power.

Threat Of New Entrants

The threat of new entrants is low for CBRE Group, Inc. due to the high barriers to entry in the commercial real estate services industry, including the need for significant capital and expertise.

Intensity Of Rivalry

The intensity of rivalry is high for CBRE Group, Inc. due to the presence of several large competitors in the commercial real estate services industry, leading to a highly competitive market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.34%
Debt Cost 3.95%
Equity Weight 68.66%
Equity Cost 11.14%
WACC 8.89%
Leverage 45.64%

11. Quality Control: CBRE Group, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Crown Castle

A-Score: 5.9/10

Value: 7.3

Growth: 2.3

Quality: 5.6

Yield: 8.0

Momentum: 3.0

Volatility: 9.0

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Equity Residential

A-Score: 5.8/10

Value: 3.8

Growth: 3.9

Quality: 6.6

Yield: 8.0

Momentum: 3.0

Volatility: 9.3

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AvalonBay Communities

A-Score: 5.7/10

Value: 3.5

Growth: 4.8

Quality: 6.4

Yield: 7.0

Momentum: 3.0

Volatility: 9.7

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Kennedy-Wilson Holdings

A-Score: 5.1/10

Value: 5.7

Growth: 3.7

Quality: 3.5

Yield: 10.0

Momentum: 2.0

Volatility: 6.0

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CBRE

A-Score: 4.7/10

Value: 2.4

Growth: 5.7

Quality: 4.8

Yield: 0.0

Momentum: 7.5

Volatility: 8.0

1-Year Total Return ->

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CoStar

A-Score: 4.3/10

Value: 2.8

Growth: 4.9

Quality: 4.5

Yield: 0.0

Momentum: 6.0

Volatility: 7.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

160.86$

Current Price

160.86$

Potential

-0.00%

Expected Cash-Flows