Should you buy, hold or sell REA Group shares?

Over the past three years REA Group, operator of the dominant realestate.com.au home listing site in Australia, has been a market favourite with its stock price up three-fold.

During this period the stock's PE multiple peaked at almost 40 times.

But in early May the shares fell from $48 down to $43 overnight following a quarterly report that surprised the market with a departure from fantastic revenue growth rates of years past.

The share price continued to slide below $38 in June.

When it comes to selling a house REA Group provides a massive audience of buyers and the best chance of achieving a high price.

Yet the company only takes a very tiny fee in comparison, leaving the business with substantial pricing power and strong organic growth prospects for many years to come.

At around $43 the current share price remains 10% below its trading level prior to the results announcement and the PE multiple has compressed to 25.

Near term uncertainty has made the stock cheap for long term investors.

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