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Description
REA Group Limited (REA Group) is a provider of property and property-related services through its extensive network of websites and mobile applications operating primarily across Australia and India. The company is dedicated to transforming the way t…
Analysis
Hope premium
REA Group Limited is priced well ahead of what the underlying numbers justify, a pattern we describe as a hope premium. Worth noting: the cash the business generates has lagged behind what the income statement shows.
On valuation, the picture is expensive. The owner-earnings multiple stands at 33.6×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 13% a year, against analyst forecasts of 17%. The price, in other words, assumes less than the experts do.
Growth is moderate; the safety picture is sturdy. The company scores 12/20 on our value-creation score: creating some value. Analyst sentiment is cautious.
Flags to be aware of: Some accounting patterns deserve a closer look. Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.
360° rank · history
1007550250
Jan 202316
67
2023202420252026
All-time high
72
Dec 2023
All-time low
16
Jan 2023
Average rank
45
across all years
Detailed & Historical Ranks
Deep dive into 15 detailed ranks and 3 years of history.
Current202520242023
Price/Sales
5
1
1
4
Price/Earnings
16
10
12
19
Price/Book
9
1
5
9
Dividend Yield
93
33
37
38
Value (overall)
28
3
6
6
Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.