What Do Recent Gains Mean for Anywhere Real Estate as Stock Surges Over 220% in 2025?
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If you have been watching Anywhere Real Estate stock over the past several months, you know it has been a wild ride. Maybe you are wondering whether the recent jump means you have missed your chance, or if it is just the beginning for this once-overlooked company. Over the past week alone, the stock has gained an impressive 47.7%, and that momentum swells to 62.9% over the past month. Zoom out a bit further and you’ll see a meteoric year-to-date rise of 222.2%. Even over the last twelve months, the company has delivered more than double your money, showing a 104.3% return.
A shift in investor sentiment around real estate stocks has definitely played a role, especially as broader market optimism and a more favorable outlook for real estate services companies have put Anywhere on the map for many traders. For long-term holders, the journey has been a rollercoaster. The five-year return still sits slightly negative at -2.9%, suggesting that most of this surge is recent and may reflect a change in how the market views the company’s risk and growth potential.
With all this movement, now comes the crucial question: is Anywhere Real Estate actually undervalued, or has its share price run ahead of its fundamentals? According to a standard value scoring system, the company meets 5 out of 6 key undervaluation criteria. That gives it a value score of 5, which signals there is more to the story than just price momentum. Next, I will dig into the different valuation methods investors use, and later on, reveal a fresh perspective for judging if the stock is truly a bargain.
A Discounted Cash Flow (DCF) model estimates a company’s intrinsic value by projecting its future cash flows and then discounting those cash flows back to today’s dollars. This approach helps investors judge whether a company’s current share price reflects its true underlying value.
For Anywhere Real Estate, the DCF model uses the company’s recent free cash flow figure of -$28.02 Million, indicating operational losses in the latest period. However, analysts expect this to turn around in the coming years, with a forecasted free cash flow of $118.2 Million by the end of 2027. Looking further ahead, projections from 2026 to 2035 suggest continued improvement, with free cash flow potentially reaching over $255 Million by 2035. These longer-term estimates are extrapolated by Simply Wall St.
After calculating the value of these expected future cash flows, the DCF model assigns an intrinsic value of $16.31 to the stock. Given the current market price, this represents a 36.0% discount and suggests the stock is significantly undervalued at present.
Our Discounted Cash Flow (DCF) analysis suggests Anywhere Real Estate is undervalued by 36.0%. Track this in your watchlist or portfolio, or discover more undervalued stocks.
Valuing a company using the Price-to-Sales (P/S) ratio is especially useful for companies that are either unprofitable or experience inconsistent earnings, as it measures the market’s valuation of a company relative to its revenue rather than its profits. For stable or growing businesses, a low P/S ratio can signal potential undervaluation, while a high ratio may indicate over-optimism.
Growth expectations and perceived risks play major roles in influencing what a “normal” or “fair” P/S ratio should be. Companies with faster revenue growth or lower risk profiles often command higher multiples, while riskier or slower-growing firms generally see lower multiples assigned by the market.
Currently, Anywhere Real Estate trades at a P/S ratio of 0.20x. This sits well below both the Real Estate industry average of 3.34x and its peer average of 0.72x. However, purely comparing these is not the full picture. Simply Wall St calculates a proprietary “Fair Ratio” for the company at 0.83x in this case, which factors in growth forecasts, profit margins, industry standards, market cap, and company-specific risks to determine what an appropriate P/S should be.
Unlike broad industry or peer averages, the Fair Ratio gives a more nuanced and tailored benchmark for valuation. This makes it a practical guide for investors seeking an objective standard. When Anywhere Real Estate’s current P/S ratio of 0.20x is compared to its Fair Ratio of 0.83x, the significant discount suggests the stock is undervalued based on this metric.
Earlier we mentioned that there is a better way to understand if a stock is a good value, so let’s introduce you to Narratives. A Narrative is simply your unique story about a company, connecting what you believe about its business and future, such as growth, risks, or opportunities, to your own estimates of future revenue, profit margins, and ultimately its fair value. Narratives help you make sense of where numbers come from by linking your viewpoint to a real financial forecast, resulting in a fair value you can actually compare to the current share price.
On Simply Wall St’s Community page, millions of investors are already building and sharing Narratives about companies like Anywhere Real Estate, making this an easy and accessible tool for anyone. Narratives give you a clear framework for deciding when to buy or sell. Once you see your Fair Value versus the current Price, your decision is grounded in your own analysis, not just the headlines.
What’s especially powerful is that Narratives update automatically when new news or earnings releases come in, so your view always stays fresh. For example, some investors believe that Anywhere’s merger with Compass and strong cost synergies make it worth as much as $13 per share. Others see risks from commission compression and demographic shifts, thinking a fair value might be closer to $3.50 per share. Narratives let you compare, refine, and track these perspectives for smarter decisions.
NYSE:HOUS Earnings & Revenue History as at Sep 2025
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
