Scentre Group (ASX:SCG) Lifted Profit In Its Half Year Result, Is The 13% Discount Enough?

Scentre Group (ASX:SCG) reported half year earnings to 30 June 2026 with sales and revenue lower than a year earlier, while net income and earnings per share from continuing operations increased.

Scentre Group’s latest earnings update comes after a mixed price pattern. The share price is up 1.99% over the last day but down 8.42% over the past month and 15.13% year to date. At the same time, the 3 year total shareholder return of 50.02% and 5 year total shareholder return of 58.76% point to a stronger longer term record, despite more recent momentum fading.

Compare Scentre Group’s updated earnings power with a curated 12 high quality undervalued stocks that currently combines compressed prices with solid fundamentals.

Scentre Group’s earnings power looks stronger even as the share price has slipped this year. The key issue now is whether that mix of weaker revenue and higher profit is already in the price or not.

Most Popular Narrative: 12.9% Undervalued

The most followed narrative currently places Scentre Group’s fair value at A$4.12 per share compared with a last close of A$3.59. That gap is built on detailed assumptions about shrinking revenues, changing margins and the price investors might pay for earnings in a few years.

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.

Want to see what is driving this 12.9% gap between price and fair value? The key is how analysts balance falling revenues, high margins and a richer future earnings multiple. Curious which assumptions really move the valuation dial?

Result: Fair Value of A$4.12 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, if record high occupancy, strong tenant sales, and the redevelopment pipeline hold up better than expected, Scentre Group’s current undervaluation narrative could weaken.

Find out about the key risks to this Scentre Group narrative.

Another View On Scentre Group’s Valuation

The current fair value narrative sees Scentre Group as undervalued by about 12.9%. Yet the earnings based check paints a different picture. The stock trades on a P/E of 9.5x, compared with a fair ratio of 11.4x, the Australian Retail REITs peer average of 7.8x and the global industry at 13.2x. That mix hints at both cushion and risk if sentiment or earnings shift.

For a closer look at what this means in practice, including how that P/E gap might matter if conditions change, See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

The mix of risks and rewards around Scentre Group will not stay ignored for long, so it makes sense to review the detail now and shape your own view using the 2 key rewards and 4 important warning signs.

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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.

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