Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

REA Group Limited (REA.AX)

Company Dividend Discount ModelIndustry: Internet Content & InformationSector: Communication Services

Valuation Snapshot

Stable Growth$341.13 - $1,474.88$827.78
Multi-Stage$175.71 - $192.05$183.73
Blended Fair Value$505.76
Current Price$240.49
Upside110.30%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS12.53%12.66%2.121.701.641.471.141.181.170.980.850.76
YoY Growth--24.84%3.65%11.59%29.12%-3.23%0.64%19.38%14.53%11.76%18.70%
Dividend Yield--0.88%0.89%1.15%1.31%0.67%1.09%1.19%1.08%1.29%1.28%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)980.70
(-) Cash Dividends Paid (M)504.70
(=) Cash Retained (M)476.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)196.14122.5973.55
Cash Retained (M)476.00476.00476.00
(-) Cash Required (M)-196.14-122.59-73.55
(=) Excess Retained (M)279.86353.41402.45
(/) Shares Outstanding (M)132.24132.24132.24
(=) Excess Retained per Share2.122.673.04
LTM Dividend per Share3.823.823.82
(+) Excess Retained per Share2.122.673.04
(=) Adjusted Dividend5.936.496.86
WACC / Discount Rate7.33%7.33%7.33%
Growth Rate5.50%6.50%7.50%
Fair Value$341.13$827.78$1,474.88
Upside / Downside41.85%244.21%513.28%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)980.701,044.451,112.331,184.641,261.641,343.641,383.95
Payout Ratio51.46%59.17%66.88%74.59%82.29%90.00%92.50%
Projected Dividends (M)504.70618.00743.91883.561,038.231,209.281,280.16

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.33%7.33%7.33%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)570.37575.77581.18
Year 2 PV (M)633.64645.71657.89
Year 3 PV (M)694.58714.52734.84
Year 4 PV (M)753.26782.23812.02
Year 5 PV (M)809.72848.83889.44
PV of Terminal Value (M)19,774.1420,729.2421,720.90
Equity Value (M)23,235.7224,296.3125,396.27
Shares Outstanding (M)132.24132.24132.24
Fair Value$175.71$183.73$192.05
Upside / Downside-26.94%-23.60%-20.14%

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