What services drive this real estate advisor?
CBRE Group is a real estate services firm that advises and executes for property owners, occupiers, and investors. Its work spans transaction-
Are rising revenues masking thin profitability?
FundamentalsFor 2025, reported in USD, CBRE produced about USD 40.6 billion of revenue, with EBIT of roughly USD 1.75 billion and net income of USD 1.28 billion. Revenue grew 13.4% year over year, while profitability stayed relatively slim in percentage terms, with a 4.32% operating margin and a 2.85% net profit margin on a trailing basis.
Depreciation and amortization totaled USD 729 million and capital spending was USD 366 million, leaving a cash flow proxy of about USD 1.8 billion. The balance sheet shows USD 1.9 billion of cash alongside USD 927 million of total debt.
Is the market overpaying for limited earnings?
DCF / MultiplesAt USD 146.33, the stock price sits well above the DCF outcome implied by the model’s range, which is negative across scenarios. The market’s pricing also lines up with elevated headline multiples, including a 37.03x trailing P/E and 19.54x EV/EBITDA.
High price, narrow cushion
TakeawayOperations convert huge revenue into relatively thin profit. The cash balance is meaningful next to reported debt. The current price does not match the DCF’s economics. For this to work, margins and cash conversion must hold up. If profitability slips, the valuation setup can unravel quickly.