Is CBRE Group (CBRE) an Attractively Valued Stock?

Baron Funds, an investment management company, released its “Baron Real Estate Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund rose 6.17% (Institutional Shares) compared to a 4.90% return for the MSCI US REIT Index (the “REIT Index”) and an 8.71% return for the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”). For 2022, the fund declined 28.44% compared to a 23.84% decline for the MSCI Real Estate Index and a 25.37% decline for the REIT Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron Funds highlighted stocks like CBRE Group, Inc. (NYSE:CBRE) in the Q4 2022 investor letter. Headquartered in Dallas, Texas, CBRE Group, Inc. (NYSE:CBRE) is a global real estate and investment company. On January 31, 2023, CBRE Group, Inc. (NYSE:CBRE) stock closed at $85.51 per share. One-month return of CBRE Group, Inc. (NYSE:CBRE) was 7.26%, and its shares lost 17.17% of their value over the last 52 weeks. CBRE Group, Inc. (NYSE:CBRE) has a market capitalization of $27.272 billion.

Baron Funds made the following comment about CBRE Group, Inc. (NYSE:CBRE) in its Q4 2022 investor letter:

CBRE Group, Inc. (NYSE:CBRE) is the largest commercial real estate services firm in the world. It maintains a #1 worldwide market share position in each of its key business lines and has a pristine balance sheet.

It is currently valued at only 13 times our estimate of 2023 earnings per share versus a long-term average valuation multiple of 15 to 16 times earnings per share.

Our “other real estate-related companies” category includes those companies that do not fit neatly in more traditional real estate categories of REITs, residential-related real estate, and travel-related real estate. Other real estate-related companies currently include:

Commercial real estate services companies Examples: CBRE Group, Inc. and Jones Lang LaSalle Incorporated…” (Click here to read the full text)


CBRE Group, Inc. (NYSE:CBRE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held CBRE Group, Inc. (NYSE:CBRE) at the end of the third quarter which was 42 in the previous quarter.

We discussed CBRE Group, Inc. (NYSE:CBRE) in another article and shared the list of largest property management companies in the US. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.


Suggested Articles:

Disclosure: None. This article is originally published at Insider Monkey.