CBRE Group Stock Potentially Overvalued Despite Forecasted Earnings Rebound
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CBRE Group's high P/E ratio of 46.9x suggests its stock price may be overvalued relative to earnings.
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The company's earnings have been falling quickly recently, with a 69% decrease last year and 38% drop over the last 3 years.
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However, analysts forecast CBRE's earnings to grow 48% per year over the next 3 years, much faster than the market's 13% growth.
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Investors seem confident in CBRE's strong future earnings growth potential, which helps support its high P/E.
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But risks remain, like CBRE's lower profit margins (1.9%) compared to last year (6.5%) and potential large one-off charges impacting financials.