REA Group Limited (REA.AX)

DCF Valuation · Communication Services · Internet Content & Information

Valuation as at 2026-08-14 · see also the ASX 300 Most Undervalued screen

About REA Group Limited

REA Group Limited, together with its subsidiaries, engages in digital advertising business in Australia, Asia, and North America. It provides property and property-related services on websites and mobile applications. The company operates residential, commercial, and share property sites, such as realestate.com.au, realcommercial.com.au, Flatmates.com.au, property.com.au, housing.com, and realtor.com.

Source: Yahoo Finance company profile · factual description, not KashVector commentary

REA Group Limited REA.AX

Communication Services · Internet Content & Information

Price
$177.02
Market Cap
$23.16B
Free Cash Flow
$0.52B
Beta
0.67
P/E (TTM)
34.6x
52-Week Range
$131.07–$265.98

REA Group Limited's price & financial trends

Annual reporting periods — this market does not have reliable quarterly data on Yahoo (either it isn't required, or coverage is incomplete), so annual is the most granular consistent series across free cash flow and dividends.

Data as at 2026-08-14

Share price · last 2 years

$177.02 -19% vs 2024-08
ASX 200 $219.00$249.73$240.49$194.28$169.85$177.02 2024-082025-012025-062025-112026-042026-08

Earnings per share (diluted) Per year

$4.18 +55% vs FY23
$2.70$2.29$5.13$4.18FY23FY24FY25FY26

Free cash flow Per year

$0.63B +78% vs FY23
$0.36B$0.46B$0.54B$0.63BFY23FY24FY25FY26

Dividend per share Per year

$2.62 +60% vs FY23
$1.64$1.70$2.12$2.62FY23FY24FY25FY26

Value investing scale · Buffett · Dalio · Graham

Strong Fit
15 / 20 combined score

2 criteria had no data

See the full Buffett, Dalio & Graham breakdown for REA.AX →

Intrinsic value estimate · 5-year forecast

BEAR
$57.13
vs current $177.02
-67.7% ❌ Overvalued
BASE
$73.00
vs current $177.02
-58.8% ❌ Overvalued
BULL
$95.97
vs current $177.02
-45.8% ❌ Overvalued

Assumptions used in this valuation

Every input below is either fetched live from Yahoo Finance or a documented default — nothing is hidden.

Starting free cash flow
$0.52B
Reported free cash flow (Yahoo)
Risk-free rate
4.80% ● LIVE
Live 10-yr govt bond
Beta
0.67
Floored for non-US stocks
Equity risk premium
6.00%
Market-specific seed
Cost of debt
5.40%
Synthetic rating AAA, ICR 123.7x
Tax rate
25.00%
Estimated default
Capital structure
E 100% / D 0%
Market cap vs total debt
Projection horizon
5 years
+ terminal value beyond
BearBaseBull
5-yr FCF growth2.5%5.0%7.5%
Terminal growth2.5%2.5%2.5%
WACC (discount rate)9.82%8.82%7.82%

Cost of Equity = Risk-free rate + Beta × Equity Risk Premium = 4.80% + 0.67 × 6.00% = 8.84% · WACC = weighted by 100%/0% capital structure

These numbers come from running REA Group Limited's cash flows through the mechanical DCF formula and assumptions above — not from any view on the news, management, or REA.AX's competitive position. What is DCF?

Want to test your own growth or discount-rate assumptions?Open the full interactive calculator, pre-filled with REA.AX →

More ASX stocks we've valued

Not financial advice. DCF valuations are highly sensitive to assumptions — small changes in growth rate or discount rate produce large swings in output. This is a mechanical calculation, not a recommendation to buy, hold, or sell.

About this valuation

Computed on 2026-08-14 from Yahoo Finance data, using the same engine as the full DCF tool and the ASX 300 Most Undervalued screen. Every figure above is a point-in-time snapshot of that date — change any assumption yourself in the interactive tool for a live one.

Frequently asked questions

Is REA Group Limited (REA.AX) undervalued?

The Base-case DCF estimates intrinsic value at $73.00 vs a price of $177.02 on 2026-08-14 — a -58.8% margin, so the Base case reads overvalued. This is a mechanical output, not advice.