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xReality Group (XRG) Fair Value & Analysis

Consumer Cyclical · AU · Market cap A$51.1M

XG xReality Group XRG · AU
PriceA$0.0690
Fair ValueA$0.0510
Upside-26.1%
Quality46/100
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Mixed Growth
Loss-making · -8.7% net margin
Low debt · generates free cash flow
Trails peers (1/12)
Narrow moat 14/100
Evidence: High Range A$0.0358 – A$0.0532 Share as image

Fair value as of: Jul 11, 2026

From 13 valuation models · updated 30 days ago

Share price +1.5% over the past month.

Below-average quality, and screening another 26% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (A$0.0532). The favourable scenario is already priced in.
  • Solid but not exceptional quality (46/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

A$0.0870 A$0.0170 Fair Value A$0.0510 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 11, 2026.

How to read this chart

60‑month range A$0.0170 – A$0.0870 · fair‑value band A$0.0358 – A$0.0532 · the A$0.0690 price screens above the A$0.0510 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 11, 2026.

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Analysis

xReality Group (XRG) currently trades at A$0.0690, while our model-based Fair Value estimate is A$0.0510, implying the stock looks roughly 26.1% overvalued today. The Quality Score stands at 46/100 (below-average quality), in the Consumer Cyclical 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, xReality Group generated revenue of A$16.4M at a net margin of -8.7%. Revenue grew 40.4% year over year. It earns a return on equity of -12.1%. Net debt stands at A$16.8M. Fundamentals as of Jul 11, 2026

Our scenario range runs from A$0.0358 (bear case) to A$0.0532 (bull case); at A$0.0690, the current price sits above 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 10% below its 52-week high and 200% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 2% fair-value upside, at -26%, XRG 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.

Model 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. Evidence
Highest evidence
Growth DCF A$0.0400 A$0.0700 A$0.1100 80
Rev-Margin DCF A$0.0200 A$0.0400 A$0.0600 74
ROIC Compounder A$0.0200 A$0.0300 A$0.0400 72
All 13 models by family
DCF Models
FCF DCF A$0.0400 A$0.0700 A$0.1300 38
5Y Revenue Exit A$0.0200 A$0.0400 A$0.0600 39
5Y EBITDA Exit A$0.0500 A$0.0900 A$0.1400 41
10Y Revenue Exit A$0.0300 A$0.0500 A$0.0700 36
10Y EBITDA Exit A$0.0400 A$0.0800 A$0.1300 37
Earnings-Based
EPV A$0.0200 A$0.0200 A$0.0300 59
Multiples
EV/EBIT A$0.0500 A$0.0600 A$0.0800 53
EV/EBITDA A$0.0500 A$0.0700 A$0.0900 54
EV/Revenue A$0.0100 A$0.0200 A$0.0300 43
Asset-Based
NCAV (Graham) A$0.0100 A$0.0100 A$0.0200 50
Growth DCF
Growth DCF A$0.0400 A$0.0700 A$0.1100 80
Rev-Margin DCF A$0.0200 A$0.0400 A$0.0600 74
Economic Profit
ROIC Compounder A$0.0200 A$0.0300 A$0.0400 72

Widest divergence: DCF Models (A$0.0700) versus Asset-Based (A$0.0100). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) A$16.4M
Revenue growth (YoY) +40.4%
Net margin -8.7%
Return on equity -12.1%
Free cash flow A$3.2M FY2025
Operating margin -7.5%
More key figures
Net debt A$16.8M FY2025

Figures from reported company fundamentals · as of Jul 11, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 46/100

Of which business quality 48 · Market factors (momentum, volatility) 78

Profitability 12
Margins and returns on capital today
Quality Growth 88
Are margins and returns improving?
Cashflow 91
Earnings quality: real cash, not paper profit
Fin. Strength 27
Balance sheet, leverage, solvency risk
Investment 83
Disciplined investing over empire-building
Low Volatility 47
Calm price path (market factor)
Momentum 89
Price trend over the last 3–12 months (market factor)
52W Momentum 93
Distance to the 52-week high (market factor)
Net Issuance 0
Buybacks instead of dilution

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

xReality Group Limited develops and operates physical and digital simulations in the Asia Pacific and the United States. It operates in two segments, Entertainment and Enterprise. The company owns and operates indoor skydiving run under the iFLY Downunder and iFLY Gold Coast brand name; and virtual reality operations under the FREAK brand.

Full company description

xReality Group Limited develops and operates physical and digital simulations in the Asia Pacific and the United States. It operates in two segments, Entertainment and Enterprise. The company owns and operates indoor skydiving run under the iFLY Downunder and iFLY Gold Coast brand name; and virtual reality operations under the FREAK brand. It also provides Red Cartel, a virtual reality, augmented reality, extended reality, and animation content for enterprise software product for entertainment, oil and gas, mining, healthcare, and government industries. In addition, the company operates Operator XR, which provides mission planning and rehearsal system for military and law enforcement agencies. It serves tourists, professional skydivers, and military. The company was formerly known as Indoor Skydive Australia Group Limited and changed its name to xReality Group Limited in December 2021. xReality Group Limited was incorporated in 2011 and is based in Brookvale, Australia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

xReality Group reported revenue of A$14.0M in FY2025 versus A$7.3M in FY2021, a compound +17.7%/yr. Reported net income was −A$3.1M in FY2025.

Growth Quality 67/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
A$14.0M
Latest YoY
+52.5%
Avg. growth/yr (3Y) 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.
+28.5%
Avg. growth/yr (5Y) 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.
+20.2%
Avg. growth/yr (11Y) 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.
+24.9%
Revenue +17.7%/yr
FY21 A$7.3M
FY22 A$6.6M
FY23 A$9.8M
FY24 A$9.2M
FY25 A$14.0M
Net income
FY21 A$4.1M
FY22 −A$6.9M
FY23 −A$1.7M
FY24 −A$4.1M
FY25 −A$3.1M

XRG screens 26% overvalued. Compare with ANTA Sports Products Limited →

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Cite: Fair Value Calculator (2026). "xReality Group Fair Value". https://www.fairvalue-calculator.com/stock/XRG

Peer Group

Leisure · 190 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.

Quality Score 46 · Below median
Fair Value upside −26% · Below median
Return on assets -1% · Bottom 25%
Net margin (TTM) -9% · Bottom 25%
Operating margin (TTM) -7% · Bottom 25%
Revenue growth 40% · Top 25%
Debt / equity 0.41× · Higher than 75% of peers

Valuation Multiples vs Leisure median · lower = cheaper

P/B 3.14× · Pricier than 75% of peers
P/S (TTM) 2.21× · Pricier than median
P/FCF 11.5× · Pricier than median
EV/EBITDA 78.1× · Pricier than 75% of peers

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 · sector 14
FUTURE 100 · sector 18
PAST 0 · sector 19
HEALTH 80 · sector 94
DIVIDEND 0 · sector 51

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Leisure stocks, each showing price versus our Fair Value estimate (as of Jul 11, 2026).

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Frequently asked questions

Is xReality Group (XRG) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of A$0.0510 versus a price of A$0.0690, about −26% (overvalued).
What is the fair value of XRG?
Our model-based fair value for xReality Group is A$0.0510 (as of Jul 11, 2026), built from audited fundamentals. The current price is A$0.0690.
What is the quality score of XRG?
xReality Group has a Quality Score of 46/100. 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 revenue of xReality Group (XRG)?
xReality Group reported trailing-twelve-month revenue of about A$16.4M (latest available figure, as of Jul 11, 2026).
What is the net profit margin of XRG?
The net profit margin of xReality Group is about -8.7%, meaning it is currently running at a net loss. Based on the latest reported figures.

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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