total value of shares traded $35.2m. market cap of REA $6.5bn %...

total value of shares traded $35.2m.
market cap of REA $6.5bn
% value of market cap in shares traded, 0.5%.

Not too concerned about volumes here...

Also of course growth rates are going to decrease each year it come off a bigger and bigger base. What you should be looking at is the return on incremental equity, I dont have time to sit here and do the calculations properly but:

2014 Closing Equity: 407m
2015 Closing Equity 557m
Increase in equity $150m

Profit
HY Dec 14: 96m
HY Dec 15: 121m
Chang in Profit: 25m
Annualised: $50m.

So profit has increased by $50m and equity has increased by $150m, so for each dollar of money they put back into the business they are earning $0.33. Last time I checked a term deposit was earning me $0.04 for every dollar, so even on a risk adjusted basis I'm fairly happy with this.

This is also super simplified as I'm sure the real number is much much higher than this, given the fact that the incremental equity invested during FY15. $350m related to the acquisition of move inc and IPP which have a negative earnings contribution to the group. Therefore the underlying business actually is a much leaner operating machine than indicated above. It pretty much spits out cash for fun. Be able to undertake two of the largest acqusitions the company has ever undertaken whilst still increasing the dividend half on half says something about the true value of the underlying business.

Given the potential for this kind of dynamic to be replicated overseas, I'd say the current multiples are justified.

Having said that the US tech sector got smashed on friday so I'm expecting this could well be sold off.

Please DYOR.