CBRE Group Inc (NYSE:CBRE) Presents an 'Affordable Growth' Investment Case

Investors looking for growth chances at fair prices often use screening methods that find companies showing solid expansion potential without high valuations. The "Affordable Growth" method looks for stocks with strong growth features, good basic financials, and prices that do not seem too high. This system balances the search for expansion with careful money management, concentrating on businesses that display encouraging growth paths while keeping sensible pricing compared to their financial numbers and industry equals.

CBRE Group Inc (NYSE:CBRE) is an interesting example in this investment structure. As the top worldwide company in commercial real estate services, it works in several areas like advisory services, property management, and real estate investments, giving full answers to property owners and users around the world.

Growth Features

The company's growth picture is very good, getting a growth score of 7 out of 10 in ChartMill's basic financial study. Recent performance signs show large increases in important financial numbers:

• Revenue went up by 14.96% in the last year, with an 8.40% average yearly increase over recent years
• Earnings per share grew by 50.95% in the most recent year
• Future estimates show expected EPS increase of 18.49% each year
• Revenue growth is expected to keep going at 8.64% each year

This growth path is especially notable given the company's place in the changing real estate industry. The faster EPS growth compared to past patterns points to better business operations along with revenue expansion. For investors focused on growth, this mix of good past performance and positive future estimates gives a good base for possible future value increase.

Valuation Review

CBRE's valuation picture shows an interesting view, scoring 5 out of 10 in ChartMill's review. While some standard measures might suggest higher pricing, looking closer shows a more detailed story:

• The P/E ratio of 27.90 is near the S&P 500 average of 27.29
• Forward P/E of 20.98 looks good compared to both industry averages and wider market numbers
• Enterprise Value to EBITDA and Price/Free Cash Flow ratios are better than 68% of industry competitors
• The PEG ratio, which changes for growth expectations, shows fair pricing

The valuation seems more interesting when thinking about the growth advantage. With earnings estimated to grow at almost 20% each year, the current multiples may not completely show the company's expansion possibility. This makes the key "affordable" part of the affordable growth plan – paying fair prices for better-than-average growth outlooks.

Profitability and Money Strength

Besides growth and valuation, CBRE shows acceptable basics in profitability and money health, both scoring in the middle with ratings of 6 and 5 in order. The company keeps steady profitability with positive earnings and cash flow during the last five years. Return measures show special strength, with Return on Equity of 13.21% doing better than 94% of industry rivals, while Return on Assets and Return on Invested Capital also place in the top group of the real estate services field.

Money health signs present a varied but acceptable view. The company keeps an Altman-Z score of 3.53, showing low failure risk and doing better than 78% of industry peers. Still, investors should know the average debt amounts and current ratio placement that falls behind many competitors. These things do not show urgent worries but need watching as the company continues its growth path.

Investment Points

The mix of good growth features, fair valuation, and enough basic strength makes CBRE a notable option for investors using affordable growth plans. The company's market leader position gives stability, while its varied service offerings across the real estate chain create several growth paths. The present review suggests the stock may provide growth exposure without the very high prices often linked to companies with fast expansion.

For investors wanting to find similar chances, more affordable growth options can be found using our special screening tool. This resource lets users use similar rules to find businesses showing this balance of growth possibility and fair valuation across different industries and company sizes.

Disclaimer: This study is based on basic financial data and scores given by ChartMill and shows an unbiased review of the company's financial measures. It does not make up investment guidance or a suggestion to purchase or sell investments. Investors should do their own study and think about their personal money situation before making investment choices.