Reece Limited

CHIA:REH Stock Report

Market Cap: AU$15.0b

Reece Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • 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 REH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
AU$18.20
Fair Value
27.2% overvalued intrinsic discount
12
Number of Analysts

Below Fair Value: REH (A$23.16) is trading above our estimate of fair value (A$18.2)

Significantly Below Fair Value: REH is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for REH. This is calculated by dividing REH's market cap by their current earnings.
What is REH's PE Ratio?
PE Ratio35.8x
EarningsAU$419.17m
Market CapAU$15.01b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for REH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.7x
SGH SGH
42.9x17.2%AU$19.9b
RDX Redox
25.1x11.1%AU$2.3b
EHL Emeco Holdings
9.1x11.2%AU$480.9m
ACF Acrow
13.9x12.5%AU$351.5m
REH Reece
35.8x8.2%AU$15.0b

Price-To-Earnings vs Peers: REH is expensive based on its Price-To-Earnings Ratio (35.8x) compared to the peer average (22.7x).

Price to Earnings Ratio vs Industry

How does REH's PE Ratio compare vs other companies in the Global Trade Distributors Industry?

22 CompaniesPrice / EarningsEstimated GrowthMarket Cap
REH 35.8xIndustry Avg. 14.4xNo. of Companies84PE01224364860+
22 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: REH is expensive based on its Price-To-Earnings Ratio (35.8x) compared to the Global Trade Distributors industry average (14.4x).

Price to Earnings Ratio vs Fair Ratio

What is REH'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.

REH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.8x
Fair PE Ratio25.8x

Price-To-Earnings vs Fair Ratio: REH is expensive based on its Price-To-Earnings Ratio (35.8x) compared to the estimated Fair Price-To-Earnings Ratio (25.8x).

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 REH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$23.16
AU$21.31
-8.0%
17.1%AU$27.05AU$13.50n/a12
Feb ’26AU$23.99
AU$21.32
-11.1%
17.2%AU$27.20AU$13.50n/a12
Jan ’26AU$22.63
AU$21.34
-5.7%
17.6%AU$28.40AU$13.50n/a12
Dec ’25AU$25.76
AU$21.34
-17.2%
17.6%AU$28.40AU$13.50n/a12
Nov ’25AU$22.61
AU$21.34
-5.6%
17.6%AU$28.40AU$13.50n/a12
Oct ’25AU$28.12
AU$21.67
-23.0%
17.7%AU$29.15AU$13.50n/a12
Sep ’25AU$27.34
AU$21.67
-20.8%
17.7%AU$29.15AU$13.50n/a12
Aug ’25AU$27.94
AU$20.25
-27.5%
17.3%AU$26.90AU$13.50n/a12
Jul ’25AU$24.86
AU$20.41
-17.9%
18.8%AU$28.90AU$13.50n/a12
Jun ’25AU$25.84
AU$20.06
-22.4%
19.4%AU$28.90AU$13.50n/a11
May ’25AU$27.16
AU$20.09
-26.0%
19.4%AU$28.90AU$13.50n/a11
Apr ’25AU$28.12
AU$20.09
-28.6%
19.4%AU$28.90AU$13.50n/a11
Mar ’25AU$27.16
AU$20.09
-26.0%
19.4%AU$28.90AU$13.50n/a11
Feb ’25AU$22.13
AU$15.32
-30.8%
13.9%AU$20.35AU$12.00AU$23.9911
Jan ’25AU$22.34
AU$15.01
-32.8%
13.5%AU$20.35AU$12.00AU$22.6311
Dec ’24AU$19.42
AU$15.05
-22.5%
14.2%AU$20.80AU$12.00AU$25.7611
Nov ’24AU$17.55
AU$15.12
-13.8%
13.8%AU$20.80AU$12.00AU$22.6111
Oct ’24AU$18.67
AU$15.08
-19.2%
14.0%AU$20.25AU$12.00AU$28.1210
Sep ’24AU$20.27
AU$15.08
-25.6%
14.0%AU$20.25AU$12.00AU$27.3410
Aug ’24AU$19.30
AU$14.58
-24.4%
12.3%AU$18.43AU$11.00AU$27.9410
Jul ’24AU$18.54
AU$14.48
-21.9%
13.0%AU$18.43AU$11.00AU$24.869
Jun ’24AU$18.24
AU$14.48
-20.6%
13.0%AU$18.43AU$11.00AU$25.849
May ’24AU$18.52
AU$14.48
-21.8%
13.0%AU$18.43AU$11.00AU$27.169
Apr ’24AU$17.35
AU$13.99
-19.4%
10.2%AU$15.60AU$11.00AU$28.127
Mar ’24AU$16.28
AU$13.99
-14.1%
10.2%AU$15.60AU$11.00AU$27.167
Feb ’24AU$16.26
AU$14.39
-11.5%
12.2%AU$16.80AU$11.00AU$22.137
Analyst Price Target
Consensus Narrative from 12 Analysts
AU$21.25
Fair Value
9.0% overvalued intrinsic discount
12
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/07 16:51
End of Day Share Price 2025/02/07 00:00
Earnings2024/06/30
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Reece Limited is covered by 18 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Russell WrightBarclay Pearce Capital Pty Limited
Brook Campbell-CrawfordBarrenjoey Markets Pty Limited
Benjamin BrayshawBarrenjoey Markets Pty Limited