Reece Limited (REECF) fair value: what the stock is really worth
As of Sep 25, 2026: fair value of Reece Limited $6.73, price $9.80, upside -31.3%, quality 53 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range $7.06 – $17.92 · fair‑value band $4.05 – $8.75 · the $9.80 price screens above the $6.73 fair value. Dashed = 300-day average. As of Sep 24, 2026.
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Reece Limited engages in the distribution of plumbing, waterworks, heating, ventilation, air-conditioning, and refrigeration products to commercial and residential customers in Australia, New Zealand, and the United States. The company also offers irrigation and pools, and fire products.
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Reece Limited engages in the distribution of plumbing, waterworks, heating, ventilation, air-conditioning, and refrigeration products to commercial and residential customers in Australia, New Zealand, and the United States. The company also offers irrigation and pools, and fire products. Its products include tapware and accessories; vanities and mirrors; showers; toilets; basins; baths and spas; pipe and fittings; sinks and troughs; hot water systems; bathroom and kitchen appliances; heating and cooling; irrigation and pools; pumps and water filtration systems; tools; and valves. The company serves customers in the trade, retail, commercial, and infrastructure markets. The company was formerly known as Reece Australia Limited and changed its name to Reece Limited in November 2015. Reece Limited was founded in 1919 and is based in Cremorne, Australia.
Stock analysis
Reece Limited (REECF) currently trades at $9.80, while our model-based Fair Value estimate is $6.73, 31.3% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $6.93 per share, and 1 of the 24 models we run sit above the $9.80 price.
Bear case: the Asset-Based group reads lowest at $3.07, and 23 of the 24 models stay below the price. Evidence for this calculation is high.
Scenario range: $4.05 (bear) to $8.75 (bull), the price of $9.80 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 53/100 (solid quality), in the Industrials sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Reece Limited reported revenue of A$9.0B in FY2025 versus A$6.3B in FY2021, a compound +9.4%/yr. Reported net income was A$317M in FY2025, compounding +2.6%/yr from FY2021.
Key figures
Market cap $6.3B · P/E ratio 31.6 · P/S ratio 1.12 · EPS (TTM) $0.3100 · Dividend yield 1.8% · Net margin 3.5% · Return on equity 7.2% · Return on assets (EBIT) 5.0%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 43 out of 100 (low confidence).
What moves the price
The share trades about 39% below its 52-week high and 39% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −30% fair-value upside, at −31%, REECF screens richer than that median.
Fair Value models
Bear $4.05Fair Value $6.73Bull $8.75
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then ($0.1370 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.66/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
−1.4%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.5%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.4%
Start year 2020 (pandemic)
Revenue growth 9 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+16.5%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+6.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+4.3%
Dividend (yield on the price)1.8%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.7% → 2%
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+16.5%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+3.7%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in AUD, Australia: IMF forecast 3.0% a year to 2030, 2.9% from 2016 to 2025) that is about +13.1% a year for the price and +0.8% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (68 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Industrial Distribution · 109 stocks
Beats the industry median on 2/14 measures
Overall it trails its industry peers.
Valuation
Quality Score53 · Bottom 25%
Fair Value upside−37.2% · Bottom 25%
Profitability
Return on equity (TTM)7.2% · Below median
Return on assets4.3% · Above median
Net margin (TTM)3.0% · Below median
Operating margin (TTM)5.6% · Below median
Growth and dividend
Revenue growth5.6% · Above median
Dividend yield (TTM)1.8% · Below median
Balance sheet
Debt / equity0.21× · Above median
Valuation Multiplesvs Industrial Distribution median · lower = cheaper
P/E (TTM)31.6× · Pricier than median
P/B2.26× · Pricier than median
P/S (TTM)0.99× · Pricier than median
P/FCF26.7× · Pricier than median
EV/EBITDA16.3× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 39
FUTURE (revenue growth)28· sector 27
PAST (return on equity)29· sector 37
HEALTH (low debt)89· sector 91
DIVIDEND (yield)35· sector 36
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Reece Limited Fair Value". https://www.fairvalue-calculator.com/stock/REECF
Frequently asked questions
Is Reece Limited (REECF) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $6.73 versus the last price from Sep 25, 2026 of $9.80, about −31% upside (overvalued).
What is the fair value of REECF?
Our model-based fair value for Reece Limited is $6.73 (as of Sep 24, 2026), built from audited fundamentals. Last price (from Sep 25, 2026): $9.80.
What is the quality score of REECF?
Reece Limited has a Quality Score of 53/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Reece Limited (REECF)?
Our model-based price target is the fair value of $6.73 (as of Sep 24, 2026) from 24 valuation models. Cautious scenario $4.05, optimistic scenario $8.75. It is a calculation from audited fundamentals, not an analyst target.
What is the Reece Limited stock forecast for 2026?
Our models put fair value at $6.73, about −31% upside versus the last price from Sep 25, 2026 of $9.80 (overvalued). Cautious scenario $4.05, optimistic scenario $8.75. The calculation is refreshed regularly with new filings.
What is the revenue of Reece Limited (REECF)?
Reece Limited reported trailing-twelve-month revenue of about A$9.2B (latest available figure, as of Sep 24, 2026).
Does Reece Limited pay a dividend?
Reece Limited currently shows a dividend yield of about 1.77% relative to its recent price (as of Sep 24, 2026).
What growth is priced into Reece Limited (REECF)?
For today's price to be fair in a discounted-cash-flow model, Reece Limited would have to grow free cash flow by +16.5 % per year for five years (discount rate 9.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +8.4 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of REECF use?
Our models discount Reece Limited at 9.9 %: a base by market capitalisation (mid), damped by beta 1.05, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Reece Limited that is +16.5 % per year a year over ten years, using the same discount rate (9.9 %) and the same formula as our fair value.
How much growth has Reece Limited (REECF) delivered so far?
Over the past 5 years revenue at Reece Limited grew +8.4 % a year. The price currently implies +16.5 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Reece Limited (REECF) growing?
The median revenue growth in the sector is +7.0 % a year. That is the yardstick for the growth priced into Reece Limited (+16.5 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Reece Limited (REECF)?
The free-cash-flow yield on the price is 3.75 %: that much free cash flow Reece Limited produces per unit of market value. When it exceeds the discount rate of our models (9.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Reece Limited (REECF)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Reece Limited it is $6.73 per share (as of Sep 24, 2026), against a price of $9.80. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Reece Limited stock overvalued or undervalued in 2026?
As of Sep 24, 2026, REECF trades above its calculated fair value: price $9.80, fair value $6.73, a gap of about −31% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of REECF?
No. The price is what the market pays today ($9.80); the fair value is what the company's own numbers justify ($6.73). For Reece Limited the two are $3.07 per share apart. That gap is exactly why we show both numbers side by side.
How much is Reece Limited worth?
The market values Reece Limited at about $6.3B (market capitalisation, as of Sep 24, 2026). Per share that is $9.80; our models calculate a fair value of $6.73 per share.
What do the bullish and bearish scenarios say about REECF?
Our models span a range for Reece Limited: cautious scenario $4.05, base $6.73, optimistic $8.75 per share (as of Sep 24, 2026, price $9.80). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of REECF?
Reece Limited trades at a price-to-earnings ratio of 31.6 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $6.73 is built from several models across several years. Other multiples: P/B 2.3, P/S 1.0, EV/EBITDA 16.3.
How solid is the balance sheet of Reece Limited (REECF)?
Balance-sheet figures for Reece Limited (as of Sep 24, 2026): return on equity 7.2%, debt of 0.21 per unit of equity. They feed the Quality Score of 53/100, which measures business quality independently of the share price.
How far is REECF from its 52-week high?
Reece Limited trades at $9.80, about 39% below its 52-week high of $16.00 and 39% above the low of $7.06 (as of Sep 25, 2026). Distance from the high says nothing about value: that is what the fair value of $6.73 is for.
Which stocks are comparable to Reece Limited?
From the same area (Industrials) we also value W.W. Grainger, Inc, Fastenal Company, Ferguson Enterprises Inc, WESCO International, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Reece Limited stock attractive at the current price?
The data as of Sep 24, 2026: price $9.80, calculated fair value $6.73 (−31%), Quality Score 53/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of REECF calculated?
We run Reece Limited through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $6.73, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Reece Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Reece Limited (REECF)?
The latest price we hold is from Sep 25, 2026 and stands at $9.80. Our model-based fair value is $6.73, about −31% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Reece Limited right now?
The price sits above even our optimistic bull case ($8.75). The favourable scenario is already priced in. Solid but not exceptional quality (53/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($4.05 to $8.75) leaves room in how you read the outcome.
Key figures of Reece Limited
How large is the market capitalisation of Reece Limited (REECF)?
The market capitalisation of Reece Limited is $6.3B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Reece Limited (REECF)?
The price-to-sales ratio of Reece Limited is 1.12 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Reece Limited (REECF)?
Earnings per share at Reece Limited are $0.3100 (price ÷ EPS = P/E 31.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Reece Limited (REECF)?
The dividend yield of Reece Limited is 1.8% (payout 55.8%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Reece Limited (REECF)?
The net margin of Reece Limited is 3.5% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Reece Limited (REECF)?
The return on equity (ROE) of Reece Limited is 7.2% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Reece Limited (REECF)?
On an EBIT basis the return on assets of Reece Limited is 5.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Reece Limited (REECF)?
The operating margin of Reece Limited is 5.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Reece Limited (REECF)?
Revenue at Reece Limited is growing +5.6% versus a year earlier (3y avg +5.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Reece Limited (REECF)?
Earnings per share at Reece Limited are growing −17.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Reece Limited (REECF) carry?
The net debt of Reece Limited is A$590M (fiscal year 2025, ≈ 1.7 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Sep 24, 2026