A Look At CBRE Group (CBRE) Valuation After Recent Analyst Upgrades And Growth Guidance

Recent analyst upgrades have pushed CBRE Group (CBRE) back into focus, with firms citing the company’s position in commercial real estate and its guidance for meaningful growth even as AI related fee worries linger.

See our latest analysis for CBRE Group.

CBRE’s shares have pulled back recently, with a 30 day share price return of 14.8% and a year to date share price return of 10%. At the same time, the 1 year total shareholder return of 4.6% and 5 year total shareholder return of 85.9% reflect a much stronger longer term picture that recent earnings, ongoing acquirebacks and sector wide worries about AI related fees have brought back into focus.

If the mixed sentiment around commercial real estate has you viewing wider, this is a good moment to scan our screener of 22 top founder-led companies and see what stands out.

With CBRE guiding for meaningful growth, acquireing back shares and trading at what analysts see as a discount to their price tarreceives, the real question is whether you are viewing at a genuine opportunity or a market that is already pricing in that future.

Most Popular Narrative: 20.7% Undervalued

With CBRE Group closing at $144.18 against a narrative fair value of $181.92, the current gap hinges on how you view its long term cash generation.

Continued investments in high-demand sectors such as data centers and strategic geographic markets, alongside capital deployment in share repurchases and M&A, are expected to deliver long-term EPS growth and shareholder value, leveraging favorable market conditions and strategic positioning.

Read the complete narrative.

Want to see what is baked into that optimism? The narrative leans on quicker earnings growth, firmer margins, and a richer future earnings multiple than today. The exact mix of those assumptions might surprise you.

Result: Fair Value of $181.92 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, those assumptions can be tested quickly if tariff related uncertainty weighs on transactions, or if interest rate swings and recession worries slow capital raising and project work.

Find out about the key risks to this CBRE Group narrative.

Another View: Earnings Multiple Tells A Different Story

While the SWS DCF model suggests CBRE Group is undervalued, the current P/E of 36.2x views expensive relative to the 28.5x fair ratio, the 29x peer average, and the 34.2x US real estate industest. That premium raises a simple question: how much optimism are you really paying for?

See what the numbers declare about this price — find out in our valuation breakdown.

Next Steps

If this mix of optimism and caution feels familiar, utilize it as your cue to review the figures now and weigh both sides carefully with our breakdown of 4 key rewards and 2 important warning signs.

Looking for more investment ideas?

If this story has sharpened your believeing on CBRE, do not stop here. Use the same framework to compare other opportunities before you commit fresh capital.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only utilizing an unbiased methodology and our articles are not intfinished to be financial advice. It does not constitute a recommfinishation to acquire or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focutilized analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.