Scentre Group (ASX:SCG) Valuation Check As Stabilizing Costs And Resilient Retail Spending Draw New Attention

Simply Wall St.

Feb 04

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Scentre Group (ASX:SCG) is back in focus as stabilizing funding costs and resilient retail spending put brick and mortar shopping centres ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/real-estate/asx-scg/scentre-group-shares/news/scentre-group-asxscg-valuation-check-as-stabilizing-costs-an\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Scentre Group (ASX:SCG) Valuation Check As Stabilizing Costs And Resilient Retail Spending Draw New Attention</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nScentre Group (ASX:SCG) Valuation Check As Stabilizing Costs And Resilient Retail Spending Draw New Attention\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-04 06:23 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/au/real-estate/asx-scg/scentre-group-shares/news/scentre-group-asxscg-valuation-check-as-stabilizing-costs-an><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>AdvertisementWhat is drawing attention to Scentre Group now? Scentre Group (ASX:SCG) is back in focus as stabilizing funding costs and resilient retail spending put brick and mortar shopping centres ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/real-estate/asx-scg/scentre-group-shares/news/scentre-group-asxscg-valuation-check-as-stabilizing-costs-an\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK7162","symbol_name":"零售房地产信托","start_time":0,"source_url":"https://simplywall.st/stocks/au/real-estate/asx-scg/scentre-group-shares/news/scentre-group-asxscg-valuation-check-as-stabilizing-costs-an","article_id":"2608387590","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9551736-choice2-main-header/1585186602415"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/au/real-estate/asx-scg/scentre-group-shares/news/scentre-group-asxscg-valuation-check-as-stabilizing-costs-an","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2608387590","pubTimestamp":1770157417,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"What is drawing attention to Scentre Group now?\nScentre Group (ASX:SCG) is back in focus as stabilizing funding costs and resilient retail spending put brick and mortar shopping centres under a fresh spotlight for income oriented investors.\nSee our latest analysis for Scentre Group.\nAt a recent share price of A$4.04, Scentre Group has seen some near term softness, with a 30 day share price return of 4.49% and a year to date share price return of 4.49%. However, its 1 year total shareholder...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK7162":"零售房地产信托","BK7510":"REITs概念","SCG.AU":"SCENTRE GROUP","BK7005":"零售业房地产投资信托"},"translate_title":"Scentre Group(ASX：SCG)估值检查，成本稳定和零售支出弹性引起新关注","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SCG.AU":1},"content_text":"AdvertisementWhat is drawing attention to Scentre Group now? Scentre Group (ASX:SCG) is back in focus as stabilizing funding costs and resilient retail spending put brick and mortar shopping centres under a fresh spotlight for income oriented investors. See our latest analysis for Scentre Group. At a recent share price of A$4.04, Scentre Group has seen some near term softness, with a 30 day share price return of 4.49% and a year to date share price return of 4.49%. However, its 1 year total shareholder return of 17.24% and 5 year total shareholder return of 90.07% point to momentum that has been building over a longer horizon as investors reassess brick and mortar retail in light of stabilizing funding costs and resilient tenant demand. If Scentre Group has you rethinking income focused real estate, it can be worth widening the lens to other property linked ideas and comparing them with fast growing stocks with high insider ownership. With Scentre Group trading around A$4.04, a recent 30 day share price decline of 4.49% sits against a 1 year total return of 17.24%. This raises the question of whether the market is offering value here or already pricing in future growth. Most Popular Narrative: 7.3% Undervalued With Scentre Group last closing at A$4.04 and the widely followed fair value sitting at A$4.36, the current price sits below that narrative estimate. This estimate is built on detailed assumptions about revenue, margins and the earnings multiple applied.  The Group's strategy of ongoing redevelopment, densification, and experiential additions to assets is capital intensive and subject to execution risk. If consumer preferences shift away from brick-and-mortar, or if macroeconomic confidence wanes, elevated capital expenditures may pressure free cash flow and compress net margins over time.  Read the complete narrative. Curious what kind of earnings profile and margin mix could justify a richer P/E than many retail REIT peers, even as revenue is expected to contract each year? The full narrative sets out a specific path for future profitability, valuation multiples and discount rate assumptions that might surprise you. Result: Fair Value of A$4.36 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there is still a risk that e-commerce adoption and higher ESG compliance costs could pressure physical foot traffic, free cash flow, and the high-margin profile that underpins this narrative. Find out about the key risks to this Scentre Group narrative. Another View: Higher P/E Puts The Story In Context While the narrative fair value suggests Scentre Group is 7.3% undervalued at A$4.04, its 14.7x P/E tells a slightly different story. That ratio sits above the Australian Retail REITs peer average of 11.3x, yet below the global industry at 16.9x and under the fair ratio of 17.1x. In plain terms, the market already pays more than local peers, but not as much as global names or what the fair ratio implies, which leaves you weighing whether that premium feels like a cushion or a risk. See what the numbers say about this price — find out in our valuation breakdown. ASX:SCG P/E Ratio as at Feb 2026 Build Your Own Scentre Group Narrative If you are not on board with this view or simply prefer to dig into the numbers yourself, you can build a personalised thesis for Scentre Group in just a few minutes. You can start this process with Do it your way. A great starting point for your Scentre Group research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision. Looking for more investment ideas? If you are weighing up Scentre Group, it can be worth broadening your watchlist with other clear, data driven ideas surfaced by the Simply Wall St screener.  Spot potential value candidates by scanning these 878 undervalued stocks based on cash flows that align with your preference for cash flow focused opportunities. Tap into the growth story around artificial intelligence with these 24 AI penny stocks that are directly exposed to this theme. Add a different source of potential income by checking out these 13 dividend stocks with yields > 3% that offer yields above 3%.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    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\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}