WOW!
At the full years results REA operating cash flow was trading at 38 times EV.
Market should have sold off at that point as growth didn't justify such lofty valuations.
With these results operating cash flow is now trading at about 46 times EV.
This is endemic in the ASX with ridiculous valuations permeating throughout the market and IMO signs that the market is frothy and ripe for a major correction.
I won't consider buying REA until their operating cash flow falls below 10 times EV. That equates to a share price of around $23.
That is the price REA may fall to in a major correction.
Note: I have held REA for a long time and will sell when share price starts to correct
Note II: Should change sentiment to something other than 'buy'
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