Cbre Group, Inc.

CBRE

Real Estate

Mkt Cap

$26.53B

PE

26.66

Debt

$3.33B

Cash

$1.127B

EV

$28.73B

FCF

$420M

Market Cap

$26.53B

P/E Ratio

26.66

Debt

$3.33B

Cash

$1.127B

EV

$28.73B

FCF

$420M

Charts data: {"Earnings":[{"time":"2014-12-30","value":484503000},{"time":"2015-12-30","value":547132000},{"time":"2016-12-30","value":571973000},{"time":"2017-12-30","value":691479000},{"time":"2018-12-30","value":1063219000},{"time":"2019-12-30","value":1282357000},{"time":"2020-12-30","value":751989000},{"time":"2021-12-30","value":1836574000},{"time":"2022-12-30","value":1407370000},{"time":"2023-12-30","value":986000000}],"Sales":[{"time":"2014-12-30","value":9049918000},{"time":"2015-12-30","value":10855810000},{"time":"2016-12-30","value":13071589000},{"time":"2017-12-30","value":14209608000},{"time":"2018-12-30","value":21340088000},{"time":"2019-12-30","value":23894091000},{"time":"2020-12-30","value":23826195000},{"time":"2021-12-30","value":27746036000},{"time":"2022-12-30","value":30828246000},{"time":"2023-12-30","value":31949000000}],"Net Margins":[{"time":"2014-12-30","value":0.05353672817808957},{"time":"2015-12-30","value":0.05039992409594494},{"time":"2016-12-30","value":0.043756960228783205},{"time":"2017-12-30","value":0.048662778030189154},{"time":"2018-12-30","value":0.04982261553935485},{"time":"2019-12-30","value":0.05366837349033282},{"time":"2020-12-30","value":0.03156143899602937},{"time":"2021-12-30","value":0.06619230220850286},{"time":"2022-12-30","value":0.04565196475985043},{"time":"2023-12-30","value":0.030861685811762497}],"Assets":[{"time":"2014-12-30","value":7647105000},{"time":"2015-12-30","value":11017943000},{"time":"2016-12-30","value":10779587000},{"time":"2017-12-30","value":11483830000},{"time":"2018-12-30","value":13456793000},{"time":"2019-12-30","value":16197196000},{"time":"2020-12-30","value":18039143000},{"time":"2021-12-30","value":22073491000},{"time":"2022-12-30","value":20513389000},{"time":"2023-12-30","value":22548000000}],"Stockholders Equity":[{"time":"2014-12-30","value":2301398000},{"time":"2015-12-30","value":2759070000},{"time":"2016-12-30","value":3057245000},{"time":"2017-12-30","value":4079548000},{"time":"2018-12-30","value":5009902000},{"time":"2019-12-30","value":6273112000},{"time":"2020-12-30","value":7120087000},{"time":"2021-12-30","value":9359117000},{"time":"2022-12-30","value":8605732000},{"time":"2023-12-30","value":9067000000}],"ROE":[{"time":"2014-12-30","value":0.21052551536066338},{"time":"2015-12-30","value":0.19830305139050478},{"time":"2016-12-30","value":0.18708772113455088},{"time":"2017-12-30","value":0.16949892488089366},{"time":"2018-12-30","value":0.21222351255573463},{"time":"2019-12-30","value":0.20442118680489046},{"time":"2020-12-30","value":0.10561514206216863},{"time":"2021-12-30","value":0.19623368315622083},{"time":"2022-12-30","value":0.16353867399077732},{"time":"2023-12-30","value":0.10874600198522114}],"ROA":[{"time":"2014-12-30","value":0.1036018205582374},{"time":"2015-12-30","value":0.07984521248657758},{"time":"2016-12-30","value":0.08170313018485773},{"time":"2017-12-30","value":0.1013680104982397},{"time":"2018-12-30","value":0.10247657075500827},{"time":"2019-12-30","value":0.084048189575529},{"time":"2020-12-30","value":0.05377023731116273},{"time":"2021-12-30","value":0.10915450573722117},{"time":"2022-12-30","value":0.08083452227225837},{"time":"2023-12-30","value":0.056634734788007804}]}

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 of offices; industrial and retail space; property sales and mortgage services under the CBRE Capital Markets brand; property and project management services, including construction management, marketing, building engineering, lease administration, 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 CBRE Group, Inc. was founded in 1906 and is headquartered in Dallas, Texas.

Sector

10-Q
9/30/23
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10-K
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12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Cbre Group, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$420M	$451.2M	$483.4M	$516.6M	$550.8M	$585.7M	$621.2M	$657.3M	$693.7M	$730.2M	$766.7M	$7.667B
DCF		$392.3M	$365.5M	$339.7M	$314.9M	$291.2M	$268.6M	$247.1M	$226.8M	$207.6M	$189.5M	$1.895B
Value	$4.738B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 11%

Earnings Stability 48%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	5%	4.4%	4.9%	5%	5.4%	3.2%	6.6%	4.6%	3.1%	3.1%
ROA	8%	8.2%	10%	10%	8.4%	5.4%	11%	8.1%	5.7%	5.8%
ROE	20%	19%	17%	21%	20%	11%	20%	16%	11%	11%

What is the average Net Margin?

The average Net Margin over the past 5 years is +4.63%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.24%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +8.12%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.52%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +16.51%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -1.57%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	8.71	8.99	4.09	3.45	2.96	1.78	1.33	1.60	20.04	7.93
Debt Equity	1.62	1.25	0.72	0.62	0.44	0.39	0.31	0.25	0.39	0.37
MIN
Graham Stability	-	-	100%	100%	100%	74%	100%	100%	74%	74%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 7.93.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 2.24.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.74.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	14%	8.4%	10%	3.6%	-2.1%
Net Income	8.1%	-1.5%	9.5%	-30%	-1.7%
Stockholders Equity	17%	13%	8.4%	5.4%	-2.1%
FCF	-12%	-28%	-52%	-87%	-7.4%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +8.41%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -2.14%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -1.5%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -1.73%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +12.6%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -2.13%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -27.98%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -7.41%.