The Real Brokerage Inc.

REAX

Real EstateReal Estate - ServicesNASDAQ

$2.23

Market Cap: $476.10M

The Real Brokerage Inc. (REAX) Valuation Summary

Updated May 11, 2026 15:25

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$32.42 – $165.87	$68.24	+2959.9%
Revenue DCF 10Y	$81.33 – $455.31	$178.34	+7897.1%
▸ Trading Multiples
EV/Revenue	$13.01 – $104.95	$88.10	+3850.7%

Valuation History

DCF Analysis

The Real Brokerage Inc. (REAX) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$178.34

Market Price

$2.23

Upside / Downside

+7897.1%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -0.4% to a target of 28.4% over 5 years, discounted at a WACC of 7.4%, The Real Brokerage Inc. (REAX) has an intrinsic value of $178.34 per share (range: $81.33 – $455.31).

Key Assumptions

Current Operating Margin

-0.4%

Target Operating Margin

28.4%

WACC

7.4%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

0.1%

Target CapEx/Rev

6.0%

D&A/Revenue

0.1%

Tax Rate

21.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	2,423	23.1%	5.3%	129	102	3	(18)	-7	95	91
2027	2,809	15.9%	11.1%	311	246	4	(37)	3	210	188
2028	3,327	18.5%	16.8%	560	443	4	(63)	4	380	317
2029	4,290	28.9%	22.6%	969	766	5	(107)	7	657	511
2030	4,851	13.1%	28.4%	1,375	1,086	6	(149)	4	939	680
2031	6,307	30.0%	28.4%	1,788	1,412	8	(231)	11	1,179	795
2032	8,199	30.0%	28.4%	2,324	1,836	10	(348)	14	1,484	932
2033	10,658	30.0%	28.4%	3,021	2,387	14	(515)	18	1,867	1,091
2034	13,856	30.0%	28.4%	3,927	3,103	18	(750)	24	2,346	1,276
2035	16,524	19.3%	28.4%	4,684	3,700	21	(991)	20	2,710	1,372

Enterprise Value Bridge

Sum of PV(FCFF)7,253

Terminal Value (Gordon Growth at 3.0%)63,015

PV of Terminal Value31,898

Enterprise Value39,152

(–) Net Debt-60

Equity Value39,211

(÷) Shares Outstanding220

Fair Value per Share$178.34

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	22.4%	25.4%	28.4%	31.4%	34.4%
5.4%	$253	$303	$354	$405	$455
6.4%	$172	$206	$240	$274	$309
7.4%	$128	$153	$178	$204	$229
8.4%	$100	$120	$140	$159	$179
9.4%	$81	$97	$113	$129	$145

Current price: $2.23. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 0.7% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

The Real Brokerage Inc. (REAX) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$68.24

Market Price

$2.23

Upside / Downside

+2959.9%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-0.4%

Target Operating Margin

28.4%

WACC

7.4%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

0.1%

Target CapEx/Rev

6.0%

D&A/Revenue

0.1%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	2,423	23.1%	5.3%	129	102	3	(32)	-7	80	78
2027	2,809	15.9%	11.1%	311	246	4	(70)	3	177	159
2028	3,327	18.5%	16.8%	560	443	4	(122)	4	321	268
2029	4,290	28.9%	22.6%	969	766	5	(207)	7	557	433
2030	4,851	13.1%	28.4%	1,375	1,086	6	(291)	4	797	577

Enterprise Value Bridge

Sum of PV(FCFF)1,515

Terminal Value (Gordon Growth at 3.0%)18,539

PV of Terminal Value13,428

Enterprise Value14,944

(–) Net Debt-60

Equity Value15,003

(÷) Shares Outstanding220

Fair Value per Share$68.24

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	22.4%	25.4%	28.4%	31.4%	34.4%
5.4%	$92	$110	$129	$147	$166
6.4%	$64	$77	$90	$103	$115
7.4%	$49	$58	$68	$78	$88
8.4%	$39	$47	$55	$63	$70
9.4%	$32	$39	$45	$52	$59

Current price: $2.23. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 0.7% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$88.10

Market Price

$2.23

Upside / Downside

+3850.7%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), The Real Brokerage Inc. (REAX) has a fair value of $88.10 based on 7 comparable companies in the Real Estate - Services industry.

EV/Revenue Valuation — Real Estate - Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
The Real Brokerage Inc.REAX	490	0.2x	0.2x
Kennedy-Wilson Holdings, Inc.KW	1,535	11.7x	11.4x
Marcus & Millichap, Inc.MMI	1,158	1.4x	1.6x
Saul Centers, Inc.BFS	862	8.4x	8.5x
NexPoint Residential Trust, Inc.NXRT	760	9.2x	9.1x
TPG Mortgage Investment Trust IncMITT	254	17.5x	105.9x
Smith Douglas Homes Corp.SDHC	108	0.1x	0.1x
Sachem Capital Corp.SACH	53	6.8x	15.0x
Industry Median		8.4x	9.1x
(*) Revenue		1,968	2,423
= Enterprise Value		16,575	22,048
(-) Net Debt		-60	-60
Equity Value		16,634	22,107
(/) Outstanding shares		220	220
Fair Price		$76	$101

Selected Fair Value (avg of trailing + forward)

$88.10

+3850.7%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$32.42 – $165.87

$68.24

+2959.9%

Revenue DCF 10Y

$81.33 – $455.31

$178.34

+7897.1%

▸ Trading Multiples

EV/Revenue

$13.01 – $104.95

$88.10

+3850.7%

DCF Analysis

The Real Brokerage Inc. (REAX) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$178.34

Market Price

$2.23

Upside / Downside

+7897.1%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-0.4%

Target Operating Margin

28.4%

WACC

7.4%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

0.1%

Target CapEx/Rev

6.0%

D&A/Revenue

0.1%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	2,423	23.1%	5.3%	129	102	3	(18)	-7	95	91
2027	2,809	15.9%	11.1%	311	246	4	(37)	3	210	188
2028	3,327	18.5%	16.8%	560	443	4	(63)	4	380	317
2029	4,290	28.9%	22.6%	969	766	5	(107)	7	657	511
2030	4,851	13.1%	28.4%	1,375	1,086	6	(149)	4	939	680
2031	6,307	30.0%	28.4%	1,788	1,412	8	(231)	11	1,179	795
2032	8,199	30.0%	28.4%	2,324	1,836	10	(348)	14	1,484	932
2033	10,658	30.0%	28.4%	3,021	2,387	14	(515)	18	1,867	1,091
2034	13,856	30.0%	28.4%	3,927	3,103	18	(750)	24	2,346	1,276
2035	16,524	19.3%	28.4%	4,684	3,700	21	(991)	20	2,710	1,372

Enterprise Value Bridge

Sum of PV(FCFF)7,253

Terminal Value (Gordon Growth at 3.0%)63,015

PV of Terminal Value31,898

Enterprise Value39,152

(–) Net Debt-60

Equity Value39,211

(÷) Shares Outstanding220

Fair Value per Share$178.34

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	22.4%	25.4%	28.4%	31.4%	34.4%
5.4%	$253	$303	$354	$405	$455
6.4%	$172	$206	$240	$274	$309
7.4%	$128	$153	$178	$204	$229
8.4%	$100	$120	$140	$159	$179
9.4%	$81	$97	$113	$129	$145

Current price: $2.23. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 0.7% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$88.10

Market Price

$2.23

Upside / Downside

+3850.7%

Verdict

Undervalued

EV/Revenue Valuation — Real Estate - Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
The Real Brokerage Inc.REAX	490	0.2x	0.2x
Kennedy-Wilson Holdings, Inc.KW	1,535	11.7x	11.4x
Marcus & Millichap, Inc.MMI	1,158	1.4x	1.6x
Saul Centers, Inc.BFS	862	8.4x	8.5x
NexPoint Residential Trust, Inc.NXRT	760	9.2x	9.1x
TPG Mortgage Investment Trust IncMITT	254	17.5x	105.9x
Smith Douglas Homes Corp.SDHC	108	0.1x	0.1x
Sachem Capital Corp.SACH	53	6.8x	15.0x
Industry Median		8.4x	9.1x
(*) Revenue		1,968	2,423
= Enterprise Value		16,575	22,048
(-) Net Debt		-60	-60
Equity Value		16,634	22,107
(/) Outstanding shares		220	220
Fair Price		$76	$101

Selected Fair Value (avg of trailing + forward)

$88.10

+3850.7%