Scentre Group

ASX:SCG Stock Report

Market Cap: AU$19.1b

Scentre Group Valuation

Is SCG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SCG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SCG (A$3.68) is trading below our estimate of fair value (A$3.83)

Significantly Below Fair Value: SCG is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SCG?

Key metric: As SCG is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SCG. This is calculated by dividing SCG's market cap by their current earnings.
What is SCG's PE Ratio?
PE Ratio44.5x
EarningsAU$429.40m
Market CapAU$19.12b

Price to Earnings Ratio vs Peers

How does SCG's PE Ratio compare to its peers?

The above table shows the PE ratio for SCG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average52.6x
VCX Vicinity Centres
18x6.3%AU$9.8b
RGN Region Group
147.2x21.3%AU$2.5b
BWP BWP Trust
13.4x-3.8%AU$2.4b
HDN HomeCo Daily Needs REIT
31.7x20.0%AU$2.6b
SCG Scentre Group
44.5x21.7%AU$19.1b

Price-To-Earnings vs Peers: SCG is good value based on its Price-To-Earnings Ratio (44.5x) compared to the peer average (52.6x).

Price to Earnings Ratio vs Industry

How does SCG's PE Ratio compare vs other companies in the Global Retail REITs Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SCG 44.5xIndustry Avg. 20.7xNo. of Companies13PE01632486480+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SCG is expensive based on its Price-To-Earnings Ratio (44.5x) compared to the Global Retail REITs industry average (20.7x).

Price to Earnings Ratio vs Fair Ratio

What is SCG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SCG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio44.5x
Fair PE Ratio27.1x

Price-To-Earnings vs Fair Ratio: SCG is expensive based on its Price-To-Earnings Ratio (44.5x) compared to the estimated Fair Price-To-Earnings Ratio (27.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SCG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$3.68
AU$3.75
+2.0%
6.7%AU$4.35AU$3.49n/a10
Nov ’25AU$3.46
AU$3.76
+8.6%
6.8%AU$4.35AU$3.50n/a10
Oct ’25AU$3.62
AU$3.67
+1.4%
3.8%AU$3.90AU$3.50n/a10
Sep ’25AU$3.44
AU$3.49
+1.6%
7.5%AU$3.79AU$2.94n/a12
Aug ’25AU$3.50
AU$3.39
-3.0%
8.6%AU$3.79AU$2.94n/a12
Jul ’25AU$3.16
AU$3.38
+7.0%
8.3%AU$3.79AU$2.94n/a12
Jun ’25AU$3.15
AU$3.33
+5.7%
9.3%AU$3.79AU$2.77n/a13
May ’25AU$3.11
AU$3.30
+6.2%
9.1%AU$3.79AU$2.77n/a14
Apr ’25AU$3.39
AU$3.25
-4.1%
8.2%AU$3.60AU$2.77n/a14
Mar ’25AU$3.15
AU$3.24
+3.0%
7.9%AU$3.55AU$2.77n/a14
Feb ’25AU$3.02
AU$3.08
+1.9%
8.9%AU$3.50AU$2.72n/a13
Jan ’25AU$2.99
AU$2.96
-0.9%
11.6%AU$3.40AU$2.33n/a13
Dec ’24AU$2.67
AU$2.96
+10.9%
11.6%AU$3.40AU$2.33n/a13
Nov ’24AU$2.47
AU$3.05
+23.5%
8.6%AU$3.40AU$2.56AU$3.4613
Oct ’24AU$2.46
AU$3.11
+26.4%
9.2%AU$3.52AU$2.56AU$3.6212
Sep ’24AU$2.74
AU$3.11
+13.4%
8.9%AU$3.52AU$2.56AU$3.4413
Aug ’24AU$2.83
AU$3.08
+8.8%
9.2%AU$3.52AU$2.48AU$3.5013
Jul ’24AU$2.65
AU$3.14
+18.5%
8.2%AU$3.60AU$2.63AU$3.1613
Jun ’24AU$2.70
AU$3.17
+17.5%
7.5%AU$3.60AU$2.63AU$3.1513
May ’24AU$2.88
AU$3.18
+10.6%
7.5%AU$3.60AU$2.63AU$3.1113
Apr ’24AU$2.75
AU$3.18
+15.5%
7.3%AU$3.60AU$2.63AU$3.3914
Mar ’24AU$2.94
AU$3.18
+8.0%
7.3%AU$3.60AU$2.63AU$3.1514
Feb ’24AU$3.08
AU$3.12
+1.3%
9.9%AU$3.70AU$2.52AU$3.0214
Jan ’24AU$2.88
AU$3.10
+7.5%
9.3%AU$3.70AU$2.52AU$2.9915
Dec ’23AU$3.01
AU$3.10
+2.9%
9.3%AU$3.70AU$2.52AU$2.6715
Nov ’23AU$2.95
AU$3.12
+5.8%
8.1%AU$3.70AU$2.66AU$2.4715

Analyst Forecast: Target price is less than 20% higher than the current share price.

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