REA Group Ltd (REA) Fair Value & Analysis
Communication Services · AU · Market cap A$19.5B (≈ $14.1B) · ISIN AU000000REA9
What is REA Group Ltd really worth?
A strong business, but trading 89% above our fair value of A$88.53.
Strengths
Risks
For context
Fair value as of: Aug 13, 2026
From 24 valuation models · updated 22 days ago
Share price +0.5% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- A high-quality business (quality 85/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
- The model range is unusually wide (A$67.08 to A$186.67). The outcome hinges heavily on assumptions, so read the point estimate with caution.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.
How to read this chart
60‑month range A$91.09 – A$270.76 · fair‑value band A$67.08 – A$186.67 · the A$167.19 price screens above the A$88.53 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.
Analysis
REA Group Ltd (REA) currently trades at A$167.19, while our model-based Fair Value estimate is A$88.53, implying the stock looks roughly 88.9% overvalued today. The Quality Score stands at 85/100 (high quality), in the Communication Services sector. Bull case: the Growth Earnings group reads highest at a median of A$143.60 per share, and 3 of the 24 models we run sit above the A$167.19 price. Bear case: the Asset-Based group reads lowest at A$9.79, and 21 of the 24 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, REA Group Ltd generated revenue of A$2.0B at a net margin of 29.3%. Revenue grew 6.1% year over year. It earns a return on equity of 28.4%. The balance sheet holds a net cash position of A$358M. Fundamentals as of Aug 13, 2026
Our scenario range runs from A$67.08 (bear case) to A$186.67 (bull case); at A$167.19, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 36% below its 52-week high and 14% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at −6% fair-value upside, at −47%, REA screens richer than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 12 months have passed since. In that time the company retained roughly A$1.71 per share, which is 1.9 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 24 models by family
Widest divergence: Growth Earnings (A$143.60) versus Asset-Based (A$9.79). Highest evidence: FCF DCF (75).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 83 · Market factors (momentum, volatility) 41
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
REA Group Limited, together with its subsidiaries, engages in online property advertising business in Australia, Asia, and North America It provides property and property-related services on websites and mobile applications.
Full company description
REA Group Limited, together with its subsidiaries, engages in online property advertising business in Australia, Asia, and North America It provides property and property-related services on websites and mobile applications. The company operates residential, commercial, and share property sites, such as realestate.com.au, realcommercial.com.au, flatmates.com.au, property.com.au, housing.com, makaan.com, proptiger.com, and realtor.com. It is also involved in the provision of mortgage brokerage and home financing solutions; property data services; mortgage application and e-lodgement solutions for the broking and lending industries; commercial real estate information and technology; vendor paid advertising; digital non-bank lending solutions; and home loans. The company was formerly known as realestate.com.au Ltd. and changed its name to REA Group Limited in December 2008. REA Group Limited was incorporated in 1995 and is headquartered in Richmond, Australia. REA Group Limited operates as a subsidiary of News Corporation.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
REA Group Ltd reported revenue of A$1.9B in FY2025 versus A$1.0B in FY2021, a compound +17.7%/yr. Reported net income was A$678M in FY2025, compounding +20.4%/yr from FY2021.
of which total revenue +14.0 % · buybacks/dilution +0.0 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
REA screens 89% overvalued. Compare with Alphabet Inc →
Peer Group
Internet Content & Information · 153 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Internet Content & Information median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 30/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Internet Content & Information stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Alphabet Inc GOOGL | $340.65 | $145.14 | −57% |
| Meta Platforms, Inc META | $571.10 | $534.91 | −6% |
| Tencent Holdings 0700 | HK$455.20 | HK$449.03 | −1% |
| Spotify Technology S.A SPOT | $547.51 | $211.87 | −61% |
| Reddit, Inc RDDT | $153.29 | $39.59 | −74% |
| Baidu, Inc 89888 | HK$79.10 | HK$28.84 | −64% |
| Kuaishou Technology, an investment holding company, 81024 | HK$34.50 | HK$63.28 | +83% |
| NAVER Corporation 035420 | 213,500 KRW | 231,585 KRW | +8% |
| Tencent Music Entertainment Group 1698 | HK$35.14 | HK$66.77 | +90% |
| Pinterest, Inc PINS | $23.19 | $14.38 | −38% |
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