Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
REA Group's Sloan Ratio for the quarter that ended in Dec. 2025 was 1.93%.
As of Dec. 2025, REA Group has a Sloan Ratio of 1.93%, indicating the company is in the safe zone and there is no funny business with accruals.
REA Group (OTCPK:RPGRF) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Dec. 2025, REA Group has a Sloan Ratio of 1.93%, indicating the company is in the safe zone and there is no funny business with accruals.
REA Group Sloan Ratio % Related Terms
REA Group Sloan Ratio % Historical Data
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The historical data trend for REA Group's Sloan Ratio % 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: Sloan Ratio % Comparison
For the Internet Content & Information subindustry, REA Group's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, REA Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where REA Group's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
REA Group's Sloan Ratio for the fiscal year that ended in Jun. 2025 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
REA Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was 154.036 (Jun. 2025 ) + 223.455 (Dec. 2025 ) = $377 Mil.
REA Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was 227.995 (Jun. 2025 ) + 247.841 (Dec. 2025 ) = $476 Mil.
REA Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was -53.711 (Jun. 2025 ) + -82.791 (Dec. 2025 ) = $-137 Mil.
* 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.
REA Group (RPGRF) has a Sloan Ratio % of 1.93% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on REA Group and its competitors.
Is REA Group's Sloan Ratio % too high?
REA Group's current Sloan Ratio % is 1.93%. Overall, REA Group has a GF Score™ of 95/100, reflecting its overall financial health beyond just this single metric.
How does REA Group's Sloan Ratio % compare to GOOGL and META?
REA Group's Sloan Ratio % of 1.93% can be compared against companies in the Interactive Media industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for an Interactive Media company?
A good Sloan Ratio % depends on the Interactive Media industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on REA Group and its competitors. REA Group's current Sloan Ratio % is 1.93%. 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 Sloan Ratio % of 1.93%. The stock's GF Value™ is $186.67, compared to a current price of $124.45 — trading 33.3% below its estimated fair value. The current Sloan Ratio % is 1.93%. REA Group's overall GF Score™ is 95/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For REA Group (RPGRF), the current Sloan Ratio % is 1.93% as of Dec. 2025. 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 33.3% below its estimated GF Value™ of $186.67.
Key valuation signals for RPGRF:
Sloan Ratio %: 1.93%
GF Value™: $186.67 vs. price of $124.45 (33.3% below fair value)
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.
95GF Score
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