REA Group (REA) Fair Value & Analysis
Communication Services · AU · Market cap A$19.5B
Fair value as of: Jul 12, 2026
From 24 valuation models · updated 26 days ago
Fair value updated Jul 12, 2026, revised from A$85.99 to A$88.53 (+3.0%) since Jun 24, 2026. Share price +16.8% over the past month.
A solid business, but screening 49% overvalued on our models.
What matters now
- A high-quality business (quality 71/100), 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 Jul 12, 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$172.03 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 Jul 12, 2026.
Analysis
REA Group (REA) currently trades at A$172.03, while our model-based Fair Value estimate is A$88.53, implying the stock looks roughly 48.5% overvalued today. We read business quality at 71/100 (solid quality), in the Communication Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, REA Group 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 Jul 12, 2026
Our scenario range runs from A$67.08 (bear case) to A$186.67 (bull case); at A$172.03, 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 34% below its 52-week high and 17% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 2% fair-value upside, at -49%, REA screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.
All 24 models by family
Widest divergence: Growth Earnings (A$137.81) versus Asset-Based (A$9.79). Highest evidence: Growth DCF (80).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 83 · Market factors (momentum, volatility) 38
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.
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 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.
REA screens 49% overvalued. Compare with Alphabet Inc →
Peer Group
Internet Content & Information · 150 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
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.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Internet Content & Information stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Alphabet Inc GOOGL | $354.46 | $145.14 | -59% |
| Meta Platforms, Inc META | $669.21 | $534.91 | -20% |
| Tencent Holdings 0700 | HK$460.20 | HK$467.50 | +2% |
| Spotify Technology S.A SPOT | $485.38 | $209.56 | -57% |
| Baidu, Inc BIDU | $113.30 | $451.51 | +299% |
| Reddit, Inc RDDT | $195.34 | $39.59 | -80% |
| Kuaishou Technology, an investment holding company, 1024 | HK$44.70 | HK$101.03 | +126% |
| NAVER Corporation 035420 | 191,300 KRW | 231,585 KRW | +21% |
| Tencent Music Entertainment Group 1698 | HK$34.74 | HK$65.78 | +89% |
| Pinterest, Inc PINS | $22.52 | $14.71 | -35% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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