Is CBRE Group Inc (CBG) Giant A Buy?

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From a valuation standpoint, CBRE is well in line with top competitor Jones Lang and other peers:
CBRE Jones Lang Kennedy-Wilson Brookfield First Service
Price to Earnings (next year earnings) 14.7 13.6 20.5 15.1
Price to Sales 1.2 1.1 11.2 3.6 0.4
Despite its valuation, CBRE is one of the best ways to play the rebounding real estate, with a market cap over double its largest competitor Jones Lang. CBRE also has solid growth prospects, and is expected to grow earnings by 15% annually over the next five years according to Wall Street estimates. With a leading market position and global reach, it appears that CBRE could be an interesting play on commercial real estate. CBREalso has a strong hedge fund presence;ValueACTisCBRE‘s top hedge fund backer, owning over 31 million shares (check out ValueACT’s profile). ValueACT’s Jeff Ubben has said this about the real estate giant CBRE: “Between CBRE and Jones, you have no other players that can enter the market, there have been number threes attempted that can’t get in, so you have a very big company in CBRE that has a global presence.

The article Is This Real Estate Giant A Buy? originally appeared on Fool.com and is written by Marshall Hargrave.

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