REA Group Limited

ASX:REA Stock Report

Market Cap: AU$32.7b

REA Group Valuation

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

Below Fair Value: REA (A$247.37) is trading above our estimate of fair value (A$120.64)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for REA. This is calculated by dividing REA's market cap by their current earnings.
What is REA's PE Ratio?
PE Ratio107.8x
EarningsAU$302.80m
Market CapAU$32.65b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for REA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average60.2x
CAR CAR Group
61.7x14.4%AU$15.5b
DHG Domain Holdings Australia
41x14.5%AU$1.8b
HPG hipages Group Holdings
49.7x24.9%AU$176.9m
PINS Pinterest
88.4x34.4%US$19.1b
REA REA Group
107.8x17.6%AU$32.7b

Price-To-Earnings vs Peers: REA is expensive based on its Price-To-Earnings Ratio (107.8x) compared to the peer average (60.3x).

Price to Earnings Ratio vs Industry

How does REA's PE Ratio compare vs other companies in the Global Interactive Media and Services Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
REA 107.8xIndustry Avg. 20.9xNo. of Companies24PE01632486480+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: REA is expensive based on its Price-To-Earnings Ratio (107.8x) compared to the Global Interactive Media and Services industry average (20.9x).

Price to Earnings Ratio vs Fair Ratio

What is REA'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.

REA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio107.8x
Fair PE Ratio33.3x

Price-To-Earnings vs Fair Ratio: REA is expensive based on its Price-To-Earnings Ratio (107.8x) compared to the estimated Fair Price-To-Earnings Ratio (33.3x).

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 REA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$242.01
AU$227.77
-5.9%
16.6%AU$275.00AU$123.00n/a15
Nov ’25AU$227.89
AU$216.93
-4.8%
15.6%AU$263.00AU$123.00n/a15
Oct ’25AU$210.80
AU$200.71
-4.8%
16.5%AU$232.20AU$123.00n/a15
Sep ’25AU$219.00
AU$200.11
-8.6%
16.3%AU$232.20AU$121.00n/a16
Aug ’25AU$204.07
AU$192.34
-5.7%
16.4%AU$233.60AU$117.00n/a16
Jul ’25AU$191.18
AU$186.59
-2.4%
15.1%AU$221.00AU$117.00n/a16
Jun ’25AU$186.71
AU$184.82
-1.0%
14.5%AU$220.00AU$117.00n/a16
May ’25AU$176.68
AU$174.87
-1.0%
13.5%AU$210.00AU$112.50n/a16
Apr ’25AU$185.47
AU$171.84
-7.3%
14.1%AU$210.00AU$112.50n/a16
Mar ’25AU$189.59
AU$170.78
-9.9%
13.9%AU$210.00AU$112.50n/a16
Feb ’25AU$182.70
AU$167.02
-8.6%
14.6%AU$204.00AU$109.00n/a14
Jan ’25AU$181.15
AU$158.76
-12.4%
12.0%AU$200.00AU$109.00n/a14
Dec ’24AU$155.84
AU$158.76
+1.9%
12.0%AU$200.00AU$109.00n/a14
Nov ’24AU$145.15
AU$159.01
+9.6%
11.7%AU$200.00AU$109.00AU$227.8914
Oct ’24AU$154.32
AU$157.48
+2.1%
12.3%AU$200.00AU$109.00AU$210.8014
Sep ’24AU$163.69
AU$155.37
-5.1%
14.0%AU$200.00AU$109.00AU$219.0015
Aug ’24AU$158.22
AU$136.12
-14.0%
15.4%AU$177.00AU$91.00AU$204.0715
Jul ’24AU$143.03
AU$131.76
-7.9%
13.4%AU$159.00AU$91.00AU$191.1815
Jun ’24AU$134.81
AU$132.03
-2.1%
13.3%AU$159.00AU$91.00AU$186.7115
May ’24AU$139.12
AU$129.71
-6.8%
14.5%AU$164.00AU$93.00AU$176.6815
Apr ’24AU$138.03
AU$126.24
-8.5%
14.0%AU$158.00AU$87.00AU$185.4715
Mar ’24AU$120.92
AU$124.45
+2.9%
15.0%AU$158.00AU$87.00AU$189.5915
Feb ’24AU$121.53
AU$125.95
+3.6%
15.7%AU$158.00AU$91.00AU$182.7015
Jan ’24AU$110.80
AU$125.95
+13.7%
16.0%AU$158.00AU$88.00AU$181.1516
Dec ’23AU$126.23
AU$126.78
+0.4%
15.5%AU$159.00AU$88.00AU$155.8416
Nov ’23AU$121.15
AU$132.80
+9.6%
14.1%AU$161.00AU$91.00AU$145.1516

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

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