* Note: Prices are in Million (M) USD.
Description:
Real Brokerage Inc. (REAX) is an innovative, technology-driven residential real estate brokerage firm headquartered in Toronto, Canada. Leveraging cutting-edge technology and a robust digital platform, Real Brokerage aims to streamline the home buying and selling process while enhancing agent productivity and customer experiences. With a focus on expanding its market presence and offering unique value propositions to both clients and real estate professionals, the company is well-positioned to capitalize on the evolving landscape of the real estate industry. Its strategic approach combines traditional brokerage services with modern technological solutions, fostering long-term growth and shareholder value.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $50 M
Debt : $0 M
EBITDA : $-11 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Real estate
Industry: Real estate services
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 7 overlapping fiscal years (max 20).Average Free Cash Flow: $10 M
Average Revenue: $357 M
Revenue Converted To Free Cash Flow (%): 2.8%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $1,265 M
Revenue 5 Years Ago (2019-12-31): $16 M
Total Growth over 5 Years: 7,928.9%
5-Year Revenue CAGR (Historical): 140.4%
Forward 5-Year CAGR (Tapered): 70.2%
Since historical Revenue CAGR is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $191 M
Share Count 5 Years Ago (2020-12-31): $102 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.00
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $0.00
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 6 valid ROE years (max 20).Average ROE: -67.2%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $4.19
52-Week Low: $3.80
Threshold Price (15% Above 52-Week Low): $4.36
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $852 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 1% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share) (TTM ending 2025-06-30): $0.35
Owners' Earnings (FCF/Share, latest positive annual) (2024-12-31): $0.25
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 17 points to above Real Brokerage Inc (REAX) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Growth Based PE 50.00 (>2× median)
Further research is recommended; please use your own due diligence.
In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Fair Value PE 12, Industry Based PE 13, Growth Based PE 50, RCFC Based PE 2.79, Risk-Free Anchored PE (25% MoS) 18.2. Based on these 5 values, average assigned is 19.20. The fair value of Real Brokerage Inc (REAX) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
