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Overvalued
Morningstar Quantitative Rating as of 28 OCT 2026.
Quantitative Equity Rating Methodology – view here
Five-star price 123.02 Fair value 149.85 One-star price 182.53
Morningstar Quantitative Rating as of 28 OCT 2026.
Morningstar Quantitative Rating as of 28 OCT 2026. The slider runs from the five-star price (123.02) to the one-star price (182.53).
| Ratios |
|---|
| Currency (Price/reporting): AUD/AUD |
| Exchange Rate: 1.0000 |
| Price - closing or last bid | 157.49 |
| Price - 12 month high | 221.98 |
| Price - 12 month low | 131.07 |
| Pricing date | 28 OCT 2026 |
| Volume - avg. trading volume for the last ten days | 0.27 |
| Market capitalization | 20,609.11 |
| 12 Month High price date | 5 NOV 2025 |
| 12 Month Low price date | 26 JUN 2026 |
| Volume - avg. trading volume for the last 3 months | 0.25 |
| Price - 1 Day % Change | -0.42% |
| Price - 13 week price percent change | -3.37% |
| Price - 26 week price percent change | -5.33% |
| Price - 5 Day % Change | -3.37% |
| Price - 52 week price percent change | -29.25% |
| Price - YTD price percent change | -14.12% |
| Price % Change Month To Date | 6.03% |
| EPS excluding extraordinary items - most recent fiscal year | 5.106 |
| EPS excluding extraordinary items - trailing 12 month | 5.106 |
| EPS Normalized - most recent fiscal year | 4.930 |
| Revenue/share - most recent fiscal year | 15.246 |
| Revenue/share - trailing 12 month | 15.246 |
| Book value per share - most recent fiscal year | 14.501 |
| Book value per share - most recent half-year | 14.501 |
| Book value (tangible) per share - most recent fiscal year | 7.263 |
| Book value (tangible) per share - most recent half-year | 7.263 |
| Cash per share - most recent fiscal year | 2.794 |
| Cash per share - most recent half-year | 2.794 |
| Cash Flow per share - most recent fiscal year | 5.846 |
| Cash Flow per share - trailing 12 month | 5.846 |
| Dividend per share - most recent fiscal year | — |
| Dividends per share - trailing 12 month | 2.970 |
| EBITD per share - trailing 12 month | 8.265 |
| EPS Basic excluding extraordinary items - most recent fiscal year | 5.106 |
| EPS Basic excluding extraordinary items - trailing 12 month | 5.106 |
| EPS including extraordinary items - most recent fiscal year | 4.185 |
| EPS including extraordinary items - trailing 12 month | 4.185 |
| Free Cash Flow per share - trailing 12 month | 4.780 |
| P/E excluding extraordinary items, most recent fiscal year | 30.84 |
| P/E Normalized, most recent fiscal year | 31.94 |
| Price to sales - most recent fiscal year | 10.33 |
| Price to Tangible Book - most fiscal year | 21.94 |
| Price to Free Cash Flow per Share - most recent fiscal year | 32.95 |
| Price to Cash Flow per share - trailing 12 month | 26.94 |
| Price to Book - most recent fiscal year | 10.86 |
| P/E excluding extraordinary items high, trailing 12 months | 42.77 |
| P/E excluding extraordinary items low, trailing 12 months | 28.92 |
| Net Debt, LFI | -388.30 |
| Net Debt, LFY | -290.00 |
| Dividend Yield - 5 Year Average | 1.07% |
| Dividend Yield - indicated annual dividend divided by closing price | 1.85% |
| Current Dividend Yield - Common Stock Primary Issue, LTM | 1.89% |
| Free Cash Flow - most recent fiscal year | 630.70 |
| LT debt/equity - most recent fiscal year | 3.54% |
| Payout ratio - most recent fiscal year | — |
| Total debt/total equity - most recent fiscal year | 3.96% |
| LT debt/equity - most recent half-year | 4.10% |
| Total debt/total equity - most recent half-year | 4.30% |
| Free Cash Flow - trailing 12 month | 630.70 |
| Payout ratio - trailing 12 month | — |
| Revenue - most recent fiscal year | 2,011.60 |
| Revenue - trailing 12 month | 2,011.60 |
| EBITD - most recent fiscal year | 1,090.50 |
| EBITD - trailing 12 month | 1,090.50 |
| Earnings before taxes - most recent fiscal year | 968.20 |
| Earnings before taxes - trailing 12 month | 968.20 |
| Net Income available to common - most recent fiscal year | 551.60 |
| Net Income available to common - trailing 12 months | 551.60 |
| Earnings before taxes Normalized - most recent fiscal year | 984.50 |
| Net Income Available to Common, Normalized - most recent fiscal year | 650.50 |
| Earnings per Share, Normalized, Excluding Extraordinary Items, Avg. Diluted Shares Outstanding, TTM | 4.93 |
| Net Profit Margin % - 1st historical fiscal year | 33.46% |
| Net Profit Margin % - trailing 12 month | 33.46% |
| Operating margin - 1st historical fiscal year | 48.57% |
| Operating margin - trailing 12 month | 48.57% |
| Pretax margin - trailing 12 month | 48.13% |
| Pretax margin - 1st historical fiscal year | 48.13% |
| Operating Margin - 5 year average | 41.89% |
| Pretax Margin - 5 year average | 40.14% |
| Free Operating Cash Flow/Revenue, 5 Year Average | 27.61% |
| Free Operating Cash Flow/Revenue, TTM | 31.35% |
| Net Profit Margin - 5 year average | 27.24% |
| Return on average assets - most recent fiscal year | 23.16% |
| Return on average assets - trailing 12 month | 23.16% |
| Return on average equity - most recent fiscal year | 34.42% |
| Return on average equity - trailing 12 month | 34.42% |
| Return on average assets - 5 year average | 17.08% |
| Return on average equity - 5 year average | 29.26% |
| Net Income/employee - most recent fiscal year | — |
| Revenue/employee - most recent fiscal year | — |
| Revenue growth rate, 5 year | 14.88% |
| EPS growth rate, 5 year | 11.32% |
| Growth rate% - dividend, 3 year | 16.90% |
| Revenue/share (5 yr growth) | 14.88% |
| Growth rate% - Revenue, 3 year | 13.05% |
| Growth rate% - EPS, 3 year | 15.76% |
| Book value per share growth rate, 5 year | 12.38% |
| Capital Spending growth rate, 5 year | 16.02% |
| Earnings Before Interest, Taxes, Depreciation & Amortization, 5 Year CAGR | 14.44% |
Financial forecast (AUD, millions except per share)
| Actuals | Estimates | |||||||
| 2026 | 2027 | 2028 | 2029 | |||||
| Estimate breakdown | ||||||||
Financials (AUD, millions)
| Period end: | JUN 22 | JUN 23 | JUN 24 | JUN 25 | JUN 26 |
| Fiscal year: | 2022 | 2023 | 2024 | 2025 | 2026 |
| Period length: | 12 months | 12 months | 12 months | 12 months | 12 months |
Announcements
| DATE | TIME | HEADING | PAGES |
| Price sensitive |
REA Group (REA) rose 2.7% on Wednesday as buyers returned to the online classifieds sector, although it lagged SEEK (SEK) and CAR Group (CAR), most likely reflecting ongoing concerns around the Australian housing market. REA’s decline over the past 12 months can largely be attributed to three compounding headwinds:
REA +3.43%: It’s always useful to get a read on the property market from Australia’s largest listings platform, particularly when sentiment around housing has become so negative. REA Group’s FY26 result suggests conditions are softer, but far from falling apart, with national listings holding up better than feared and the business continuing to grow earnings through pricing, product mix and cost control.
The impact on property stocks reaches further than just prices of residential homes. The Budget has drawn a clear distinction between Goodman Group and REA Group — and it centres on new supply. Goodman develops industrial, logistics and data centre assets, the very areas the government is trying to encourage through exemptions to the negative gearing and CGT changes. Combined with the AI-driven data centre buildout, the policy backdrop remains supportive for GMG.
The REA business model is similar to CAR Group just towards property as opposed to vehicles. The one key difference is REA’s customers, on the sell side (real estate agents), often express frustration about high advertising fees and subscription costs compared with perceived value.
REA has experienced some valuation contraction of late with the stock trading on 25x, around ~8% cheap relative to its own history, despite a solid FY25 result in August which saw improved margins and upbeat commentary. We wrote about the stock post the result, saying we were neutral and had no intention of chasing the real estate behemoth above $250.
REA +6.94%: Strong session for the real-estate listings behemoth after they met FY25 expectations for earnings, though they bumped up the dividend and the commentary was very upbeat despite actual guidance around listing volumes appearing conservative.
REA has endured a tough 2025, especially when compared to its historical outperformance, and we believe it's now at a fascinating juncture in its evolution with plenty of positives and negatives to consider.
Domain (DHG) announced on Thursday morning that it had received a “Best & Final” offer of $4.43 per share from US-listed giant CoStar, which had originally made a $4.20 bid in late February.
The home is the vast majority of people's largest and most important purchase, and lower interest rates provide a tailwind to affordability and, of course, general sentiment.
MM is cautiously bullish towards REA around $163
MM has turned more positive on REA ~$170
MM is neutral towards REA around $155
MM is neutral REA ~$160
MM is neutral towards REA ~$220
MM is neutral REA ~$255
MM would only get interested in REA in the $200-220 range
MM are neutral toward REA short term
MM would only get interested in REA closer to $200
MM remains bullish REA
REA Group is a technology company operating in the real estate sector. REA Group's primary business is an online listings platform for residential real estate, www.realestate.com.au, which is the largest residential real estate listings platform in Australia, at around four times the size of the number two, www.domain.com.au. REA Group is majority-owned by News Corp. REA Group's other businesses include adjacent services.
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