REA Group Limited

CHIA:REA Stock Report

Market Cap: AU$31.8b

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.

Discounted Cash Flow
Simply Wall St
AU$127.32
Fair Value
89.5% overvalued intrinsic discount
15
Number of Analysts

Below Fair Value: REA (A$241.28) is trading above our estimate of fair value (A$127.32)

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 Ratio105.1x
EarningsAU$302.80m
Market CapAU$31.82b

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 Average43.5x
CAR CAR Group
60x14.8%AU$15.0b
DHG Domain Holdings Australia
38.9x14.7%AU$1.7b
HPG hipages Group Holdings
45.9x24.9%AU$163.5m
4689 LY
29.4x12.9%JP¥3.1t
REA REA Group
105.1x18.6%AU$31.8b

Price-To-Earnings vs Peers: REA is expensive based on its Price-To-Earnings Ratio (105.1x) compared to the peer average (43.5x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
REA 105.1xIndustry Avg. 22.9xNo. of Companies25PE01632486480+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: REA is expensive based on its Price-To-Earnings Ratio (105.1x) compared to the Global Interactive Media and Services industry average (22.9x).

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 Ratio105.1x
Fair PE Ratio30.1x

Price-To-Earnings vs Fair Ratio: REA is expensive based on its Price-To-Earnings Ratio (105.1x) compared to the estimated Fair Price-To-Earnings Ratio (30.1x).

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 REA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$241.28
AU$230.17
-4.6%
15.6%AU$275.00AU$123.00n/a15
Jan ’26AU$233.90
AU$229.37
-1.9%
15.8%AU$275.00AU$123.00n/a15
Dec ’25AU$251.32
AU$229.37
-8.7%
15.8%AU$275.00AU$123.00n/a15
Nov ’25AU$226.84
AU$216.93
-4.4%
15.6%AU$263.00AU$123.00n/a15
Oct ’25AU$210.01
AU$200.71
-4.4%
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$204.61
AU$192.34
-6.0%
16.4%AU$233.60AU$117.00n/a16
Jul ’25AU$190.52
AU$186.59
-2.1%
15.1%AU$221.00AU$117.00n/a16
Jun ’25AU$186.50
AU$184.82
-0.9%
14.5%AU$220.00AU$117.00n/a16
May ’25AU$177.52
AU$174.87
-1.5%
13.5%AU$210.00AU$112.50n/a16
Apr ’25AU$186.30
AU$171.84
-7.8%
14.1%AU$210.00AU$112.50n/a16
Mar ’25AU$189.31
AU$170.78
-9.8%
13.9%AU$210.00AU$112.50n/a16
Feb ’25AU$182.13
AU$167.02
-8.3%
14.6%AU$204.00AU$109.00n/a14
Jan ’25AU$181.31
AU$158.76
-12.4%
12.0%AU$200.00AU$109.00AU$233.9014
Dec ’24AU$155.92
AU$158.76
+1.8%
12.0%AU$200.00AU$109.00AU$251.3214
Nov ’24AU$145.05
AU$159.01
+9.6%
11.7%AU$200.00AU$109.00AU$226.8414
Oct ’24AU$154.07
AU$157.48
+2.2%
12.3%AU$200.00AU$109.00AU$210.0114
Sep ’24AU$163.51
AU$155.37
-5.0%
14.0%AU$200.00AU$109.00AU$219.0015
Aug ’24AU$157.59
AU$136.12
-13.6%
15.4%AU$177.00AU$91.00AU$204.6115
Jul ’24AU$142.78
AU$131.76
-7.7%
13.4%AU$159.00AU$91.00AU$190.5215
Jun ’24AU$134.99
AU$132.03
-2.2%
13.3%AU$159.00AU$91.00AU$186.5015
May ’24AU$139.22
AU$129.71
-6.8%
14.5%AU$164.00AU$93.00AU$177.5215
Apr ’24AU$138.40
AU$126.24
-8.8%
14.0%AU$158.00AU$87.00AU$186.3015
Mar ’24AU$121.12
AU$124.45
+2.8%
15.0%AU$158.00AU$87.00AU$189.3115
Feb ’24AU$121.53
AU$125.95
+3.6%
15.7%AU$158.00AU$91.00AU$182.1315
Jan ’24AU$110.90
AU$125.95
+13.6%
16.0%AU$158.00AU$88.00AU$181.3116
Analyst Price Target
Consensus Narrative from 15 Analysts
AU$230.41
Fair Value
4.7% overvalued intrinsic discount
15
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 Analysis2025/01/26 04:52
End of Day Share Price 2025/01/24 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 here.

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 .

Analyst Sources

REA Group Limited is covered by 35 analysts. 15 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 WrightAPP Securities Pty Ltd.
Eric ChoiBarrenjoey Markets Pty Limited
Aryan NoroziBarrenjoey Markets Pty Limited