Overview
REA Group Ltd (ASX: REA) is more than a property-listings operator: it combines digital advertising and property information with mortgage broking, lending technology and home-finance services. Its 2.0B in revenue and 27.90% profit margin underline the scale and profitability of the platform, while revenue growth of 6.10% shows a business still expanding. For Australian investors, the central question is how reliably REA can sustain that performance through changing property-market conditions, particularly given a P/E ratio of 30.3. The shares recently stood at A$154.54, within their A$129.79–A$228.90 52-week range.
REA Group is a digital property and services business built around online marketplaces, including realestate.com.au and other property brands. It connects consumers, agents, landlords and commercial-property participants through advertising and property information, while extending into mortgage broking, home loans, lending technology and related services. Its operations reach beyond Australia into Asia and North America. With a market capitalisation of 20.2B and revenue of 2.0B, REA is a substantial platform business, and the supplied figures show 6.10% revenue growth alongside a 27.90% profit margin.
Key facts
- Ticker
- REA
- Exchange
- AU
- ISIN
- AU000000REA9
- Sector
- Communication Services
- Industry
- Internet Content & Information
- Country
- Australia
- Currency
- AUD
- Price
- A$153.44
- Previous close
- A$152.34
- Day change
- +A$1.10 (+0.72%)
- Market cap
- 19.9B
- 52W low
- A$129.79
- 52W high
- A$222.12
Price and trend
Last price: A$153.44
- Price
- A$153.44
- 52W range
- A$129.79 – A$222.12
- 50-day SMA
- A$164.54
- 200-day SMA
- A$163.82
- Price vs 50D SMA
- -6.75%
- Price vs 200D SMA
- -6.34%
Valuation
- P/E
- 29.81
- PEG
- 0.67
- EPS
- 5.11
- Dividend yield
- 1.94%
- Beta
- 0.73
REA trades on a P/E ratio of 30.3, a valuation that places weight on the company sustaining growth and high profitability. Its PEG ratio is 0.67, while revenue growth is 6.10%; neither measure alone captures the sensitivity of property advertising to market conditions. The dividend yield is 1.93%, providing a secondary component of the return profile rather than defining the investment case. The share price of A$154.54 is between the 52-week low of A$129.79 and high of A$228.90.
Profitability and growth
- Revenue growth
- 6.10%
- Revenue TTM
- 2.0B
- Profit margin
- 27.90%
Analyst view
Comparison uses the last price shown; targets are analyst estimates.
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- Price
- A$153.44
- Target price
- A$191.34
- Target vs last price
- 24.70% from last price
The business combines a recognised property-marketplace presence with related data and finance services, and its reported growth and profit margin indicate a profitable operating model. That strength is balanced by exposure to property-market conditions and a share price that is currently below its recent moving averages. The supplied target price of A$191.34 is 23.81% from the last price, but it is secondary context rather than a substitute for assessing the business and its risks.
Risks
REA’s business is tied to property advertising and transactions, so shifts in housing-market activity and advertiser demand can affect growth. Its broad digital marketplace and financial-services operations also face competition and execution risks across multiple markets. The shares trade on a P/E ratio of 30.3, leaving valuation sensitive to any slowdown in growth or profitability. The price is below both its 50-day and 200-day moving averages and remains within a wide 52-week range, reflecting a meaningful change in market pricing over that period.
FAQ
What does REA Group do?
REA Group operates digital property marketplaces and related services, including advertising, property data, mortgage broking and home-financing solutions. Its brands and operations span Australia, Asia and North America.
How is REA Group performing financially?
The supplied figures show revenue of 2.0B, revenue growth of 6.10% and a profit margin of 27.90%. These figures point to a profitable business with continued, moderate growth.
Does REA Group pay a dividend?
The supplied dividend yield is 1.93%, with a dividend per share of A$2.97. Dividends can change, and the yield varies with the share price.
How does REA’s share price compare with its recent range and moving averages?
At A$154.54, the shares sit within the 52-week range of A$129.79 to A$228.90. The price is 6.32% below its 50-day moving average and 6.01% below its 200-day moving average.
*This content is aimed to provide general information only, and does not take your personal objectives, financial situation or needs into account.
