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REA GroupRPGRF 96 Degree of Operating Leverage is 1.36 as of Jun. 2026. GuruFocus rates RPGRF with a GF Score™ of 96/100 and a GF Value™ of $172.58. The stock has 1 warning sign investors should review. Among 532 Interactive Media companies, REA Group ranks worse than 57.52% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
REA Group's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 1.36. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for REA Group's Degree of Operating Leverage or its related term are showing as below:
RPGRF's Degree of Operating Leverage is ranked worse than 57.52% of 532
companies
in the Interactive Media industry
Industry Median: 0.7
vs RPGRF: 1.36
REA Group (OTCPK:RPGRF) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
REA Group Degree of Operating Leverage Related Terms
REA Group Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for REA Group's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
RPGRF vs GOOGL, META, SPOT: Degree of Operating Leverage Comparison
For the Internet Content & Information subindustry, REA Group's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
REA Group Degree of Operating Leverage vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, REA Group's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where REA Group's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 1.36 mean?
REA Group (RPGRF) has a Degree of Operating Leverage of 1.36 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for REA Group and its competitors. According to the industry distribution chart, REA Group ranks #306 out of 532 companies in the Interactive Media industry, placing it in the top 57.5%.
Is REA Group's Degree of Operating Leverage too high?
REA Group's current Degree of Operating Leverage is 1.36. The Interactive Media industry median Degree of Operating Leverage is 0.70. REA Group's value of 1.36 is 94.3% above this industry median. Based on the distribution chart, REA Group ranks #306 out of 532 companies in the Interactive Media industry, which is below the industry midpoint. Overall, REA Group has a GF Score™ of 96/100, reflecting its overall financial health beyond just this single metric.
How does REA Group's Degree of Operating Leverage compare to GOOGL and META?
According to the Interactive Media industry distribution chart, REA Group ranks #306 out of 532 companies for Degree of Operating Leverage. This places REA Group in the lower half of its industry. The industry median Degree of Operating Leverage is 0.70. REA Group's value of 1.36 is 94.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for an Interactive Media company?
The median Degree of Operating Leverage among Interactive Media companies is 0.70, based on 532 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. REA Group's current Degree of Operating Leverage of 1.36 is 94.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for REA Group and its competitors. For the Interactive Media industry, the median Degree of Operating Leverage is 0.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REA Group's current Degree of Operating Leverage is 1.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REA Group stock overvalued right now?
REA Group (RPGRF) has a current Degree of Operating Leverage of 1.36. The stock's GF Value™ is $172.58, compared to a current price of $124.45 — trading 27.9% below its estimated fair value. The current Degree of Operating Leverage is 1.36 and 94.3% above the Interactive Media industry median of 0.70. REA Group's overall GF Score™ is 96/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For REA Group (RPGRF), the current Degree of Operating Leverage is 1.36 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is REA Group (RPGRF) Overvalued in 2026?
Based on GuruFocus' analysis, REA Group stock appears to be undervalued.
The current stock price of $124.45 is trading 27.9% below its estimated GF Value™ of $172.58.
Key valuation signals for RPGRF:
Degree of Operating Leverage: 1.36
GF Value™: $172.58 vs. price of $124.45 (27.9% below fair value)
Industry Position: 94.3% above the Interactive Media median (#306 of 532)
No single metric tells the full story. See the RPGRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
REA Group is a technology company operating in the real estate sector. REA Group's primary business is an online listings platform for residential real estate, www.realestate.com.au, which is the largest residential real estate listings platform in Australia, at around four times the size of number two, www.domain.com.au. REA Group is majority-owned by News Corp. REA Group's other businesses include adjacent markets and services, and investments in online listings platforms in India.
96GF Score
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