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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

Breaking News: CBRE Group Inc has made a significant investment in IPUT Real Estate, a Dublin-based property investment company. CBRE Investment Management has committed €175 million in equity to support IPUT's growth plans for its prime Dublin office portfolio. IPUT's portfolio consists of 30 assets, totaling over 2 million sq. ft. in Dublin's City Centre. The company has a development pipeline with capacity for over €500 million of investment. Analysts at Goldman Sachs recommend a buy, while those at Morgan Stanley advise to hold.

1.c. Company Highlights

2. CBRE's Resilient Businesses Drive Double-Digit Growth

CBRE's fourth-quarter results showcased the company's robust financial performance, with revenue increasing by 12% and core EBITDA rising by 19%. The company's earnings per share (EPS) came in at $2.73, beating analyst estimates of $2.68. The strong performance was driven by double-digit growth in the company's resilient businesses, including facilities management, property management, and loan servicing. Transactional businesses, such as property sales, leasing, and mortgage origination, also saw double-digit growth. Emma Giamartino, Chief Financial Officer, noted that Advisory Services saw double-digit growth in leasing and sales, while Capital Markets experienced high teens growth in sales and commercial mortgage originations.

Publication Date: Feb -13

📋 Highlights
  • Resilient and Transactional Businesses Growth:: Double-digit revenue growth in facilities management, property management, and loan servicing, alongside transactional businesses like property sales and leasing.
  • Data Center Solutions Expansion:: Expected to reach $2 billion in revenue by 2026, growing at 20% annually, contributing 14% to core EBITDA in 2025.
  • 2026 Core EPS Guidance:: Projected range of $7.30–$7.60 (17% growth at midpoint), driven by double-digit revenue growth in core businesses.
  • Local FM Business Growth:: Expanded from $300 million to $800 million in 3.5 years, with U.S. focus and higher-margin project work.
  • AI Efficiency Gains:: 25% cost reduction in research efforts via AI, improving data delivery to brokers while maintaining broker headcount growth.

Revenue Growth and Margin Expansion

The company's revenue growth was driven by its diversified business model, with a strong performance in its transactional businesses. The Data Center Solutions business is expected to reach $2 billion in revenue in 2026, growing at 20% per year. Revenue from this business accounted for approximately 14% of core EBITDA in 2025. The company's focus on investing in its functional platform and products is expected to drive sustained growth, with core EPS expected to be in the range of $7.30 to $7.60 in 2026, reflecting 17% growth at the midpoint.

Valuation Metrics

CBRE's current valuation metrics suggest that the market is pricing in a certain level of growth. The company's P/E Ratio is 35.7, indicating that investors are willing to pay a premium for the company's earnings. The P/S Ratio is 1.0, suggesting that the company's revenue growth is being recognized by the market. The EV/EBITDA ratio is 17.34, which is relatively high, indicating that the company's profitability is being valued by the market. With an ROE of 13.63% and an ROIC of 7.13%, the company is generating strong returns on its equity and invested capital.

Growth Prospects

The company is optimistic about its growth prospects, driven by its resilient and transactional businesses. The Data Center Solutions business is expected to be a key driver of growth, with revenue expected to reach $2 billion in 2026. The company's investment in its functional platform and products is also expected to drive sustained growth. Bob Sulentic noted that the company is using AI to improve efficiency and develop knowledge advantages, but also acknowledged potential market-facing risks and opportunities.

Capital Allocation

The company has a strong pipeline of potential deals and will balance M&A activity with share repurchases. The company expects to deploy at least the level of free cash flow it generates in a year, with a goal of maintaining a strong balance sheet and returning value to shareholders. With a Net Debt / EBITDA ratio of 0.58, the company has a healthy balance sheet and is well-positioned to make strategic investments.

3. NewsRoom

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CBRE IM Backs IPUT Real Estate Dublin with Significant Equity Commitment

Feb -18

Source: businesswire.com

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Pinterest, DraftKings, And Flutter Are Among Top 10 Large Cap Losers Last Week (Feb. 9-Feb. 13): Are the Others in Your Portfolio?

Feb -15

Source: feeds.benzinga.com

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AI sell-off: 3 sectors it has hit the hardest and why

Feb -14

Source: invezz.com

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Market Today: AI Fears Rattle Stocks; CPI Cools, Rivian Pops

Feb -13

Source: gurufocus.com

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AI Uncertainty Melts Away Market Gains

Feb -13

Source: zacks.com

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Stock Market Today, Feb. 12: AI Fears Slam Markets as Nasdaq Drops 2%

Feb -12

Source:

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AI Disruption Fears Slam Real Estate Brokers

Feb -12

Source: benzinga.com

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Why CBRE Group Sank Today

Feb -12

Source: fool.com

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

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Value: 7.3

Growth: 2.4

Quality: 5.8

Yield: 8.0

Momentum: 4.0

Volatility: 9.0

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AvalonBay Communities

A-Score: 5.9/10

Value: 3.8

Growth: 4.7

Quality: 7.3

Yield: 7.0

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Equity Residential

A-Score: 5.7/10

Value: 3.6

Growth: 3.9

Quality: 6.7

Yield: 8.0

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Volatility: 9.7

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CBRE

A-Score: 4.8/10

Value: 2.4

Growth: 5.7

Quality: 5.0

Yield: 0.0

Momentum: 7.5

Volatility: 8.0

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Kennedy-Wilson Holdings

A-Score: 4.6/10

Value: 4.8

Growth: 3.7

Quality: 2.4

Yield: 9.0

Momentum: 4.0

Volatility: 4.0

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CoStar

A-Score: 3.7/10

Value: 0.9

Growth: 4.9

Quality: 5.6

Yield: 0.0

Momentum: 3.5

Volatility: 7.3

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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

147.01$

Current Price

147.01$

Potential

-0.00%

Expected Cash-Flows