REA Group Ltd · Valuation
ASX: REA · Communication Services · Internet Content & Information
Fair value estimates vs price
A$ per share · models updated 26 Jul 2026
44.9% below fair value A$275.63, the median of our 3 model estimates.
Different models answer different questions. A wide spread between them usually means the market is pricing growth or risk that historical figures don't capture. Estimates are recomputed as new results and prices land.
Discounted cash flow
A$61.00Projects the company's free cash flow forward and discounts it back to today, the most fundamental measure of what a business is worth.
EPS growth model
A$522.30Projects earnings per share forward at the historical growth rate, then discounts back to a present value.
P/E multiple
A$275.63Applies the historical median price-to-earnings ratio to current earnings per share.
Trailing P/E history
Monthly price ÷ trailing diluted EPS · extremes above 100 excluded from stats
Per-share fundamentals
The inputs behind the models
| FY | EPS | Book value / sh | Free cash flow |
|---|---|---|---|
| 2025 | $5.13 | $14.76 | $537.4M |
| 2024 | $2.29 | $11.95 | $464.4M |
| 2023 | $2.70 | $11.48 | $355.1M |
| 2022 | $2.91 | $10.32 | $392.6M |
| 2021 | $2.45 | $8.64 | $254.5M |
| 2020 | $0.85 | $6.56 | $345.8M |
| 2019 | $0.80 | $6.87 | $360.0M |
| 2018 | $1.92 | $7.14 | $317.9M |
| 2017 | $0.36 | $6.11 | $285.2M |
| 2016 | $1.93 | $5.43 | $217.5M |
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Is REA Group (ASX: REA) undervalued or overvalued based on valuation models?
At the July 3, 2026 close of $141.91, REA Group carried a current price-to-earnings ratio of 27.66, sitting well below its own five-year median P/E of 55.23. The valuation models built from these figures point in different directions: a P/E-ratio model estimates fair value at $283.33 per share and an EPS-growth model at $536.88, both above the current price, while a DCF model estimates just $61.00, well below it.
Diluted EPS has been volatile across the record used to build these estimates, ranging from $0.36 in FY2017 to $5.13 in FY2025, with intermediate years such as FY2019 ($0.80) and FY2020 ($0.85) well below the most recent figure. Because the P/E-ratio and EPS-growth models lean heavily on recent earnings and historical multiples, their outputs would only hold if FY2025's elevated EPS level and market multiples persist rather than reverting toward the more volatile pattern seen in earlier years.
The DCF model's much lower estimate reflects a different set of assumptions about future cash flows and discount rates, and its wide gap from the other two models illustrates how sensitive all three outputs are to the inputs chosen. None of these figures should be read as a fixed fair value; they are model estimates that depend on assumptions about growth, multiples and discounting holding true over time, not certainties about what the shares are worth.
AI-assisted analysis generated from Craytheon's verified financial data · Updated 4 Jul 2026 · How this works
Data is general information only, not financial advice. Figures are as reported in company filings (some ASX companies report in USD); share prices are AUD.