REA Group Ltd
ASX:REA

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REA Group Ltd
ASX:REA
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Price: 239.99 AUD 0.94% Market Closed
Market Cap: 31.7B AUD
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Intrinsic Value

The intrinsic value of one REA stock under the Base Case scenario is 100.91 AUD. Compared to the current market price of 239.99 AUD, REA Group Ltd is Overvalued by 58%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

REA Intrinsic Value
100.91 AUD
Overvaluation 58%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation History
REA Group Ltd

Intrinsic Value History
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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

Backtest Example
REA
Valuation History
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Valuation History Unavailable

Historical valuation for REA cannot be conducted due to limitations such as insufficient data or other constraints.

Valuation In Progress...
Valuation In Progress...

Fundamental Analysis

Company Overview
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Business Segments
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Economic Moat
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Earnings Call
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Management
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Bear Theses

A prolonged slowdown in the Australian property market could undermine REA’s core revenue driver, as fewer listings and weaker advertising demand directly affect its bottom line.

Aggressive competition from Domain and new tech-based real estate platforms threatens to erode REA’s dominant market share, potentially forcing expensive promotional campaigns or fee discounts to retain customers.

Expansion beyond Australia, such as through iProperty in Asia, remains unproven and faces execution risks, as uneven economic conditions and local competition in international markets challenge the profitability of these ventures.

Bull Theses

REA’s commanding market share and entrenched brand power in the Australian real estate advertising space create a strong network effect, making it difficult for competitors to match its user reach and listings volume.

Its robust data analytics and technology platforms enable the company to develop new revenue streams, such as premium listing products and value-added services, enhancing profitability and deepening customer relationships.

Backed by News Corp’s supportive ownership, REA enjoys access to additional capital and cross-promotional opportunities, positioning it to invest in advanced property technology solutions and expand its footprint both domestically and overseas.

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
REA Group Ltd

Current Assets 786.3m
Cash & Short-Term Investments 338.2m
Receivables 448.1m
Non-Current Assets 1.9B
Long-Term Investments 374.3m
PP&E 76m
Intangibles 995.6m
Other Non-Current Assets 466.8m
Current Liabilities 368m
Accounts Payable 115.1m
Other Current Liabilities 252.9m
Non-Current Liabilities 486.8m
Long-Term Debt 66m
Other Non-Current Liabilities 420.8m
Efficiency

Free Cash Flow Analysis
REA Group Ltd

Last Value
3-Years Average
FCF Margin
Conversion Rate

Earnings Waterfall
REA Group Ltd

Revenue
1.9B AUD
Cost of Revenue
-288.8m AUD
Gross Profit
1.6B AUD
Operating Expenses
-793.8m AUD
Operating Income
769m AUD
Other Expenses
-152.3m AUD
Net Income
616.7m AUD
Fundamental Scores

REA Profitability Score
Profitability Due Diligence

REA Group Ltd's profitability score is 73/100. The higher the profitability score, the more profitable the company is.

Positive Free Cash Flow
Positive Gross Profit
Exceptional 3-Year Average ROE
Positive Operating Income
73/100
Profitability
Score

REA Group Ltd's profitability score is 73/100. The higher the profitability score, the more profitable the company is.

REA Solvency Score
Solvency Due Diligence

REA Group Ltd's solvency score is 69/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
Negative Net Debt
Low D/E
Long-Term Solvency
69/100
Solvency
Score

REA Group Ltd's solvency score is 69/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

REA Price Targets Summary
REA Group Ltd

Wall Street analysts forecast REA stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for REA is 267.33 AUD with a low forecast of 212.1 AUD and a high forecast of 308.7 AUD.

Lowest
Price Target
212.1 AUD
12% Downside
Average
Price Target
267.33 AUD
11% Upside
Highest
Price Target
308.7 AUD
29% Upside
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Dividends

Dividend Yield
Lowest
Average
Highest
Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
Very
Unsafe
Unsafe
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Safe
0
25
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100
Shareholder Yield

Current shareholder yield for REA is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
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Buyback Yield
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Debt Paydown Yield
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Ownership

REA Insider Trading
Buy and sell transactions by insiders

What is the Intrinsic Value of one REA stock?

The intrinsic value of one REA stock under the Base Case scenario is 100.91 AUD.

Is REA stock undervalued or overvalued?

Compared to the current market price of 239.99 AUD, REA Group Ltd is Overvalued by 58%.

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