SEEK (ASX:SEK) Swung To A Loss, Is The 29% Undervaluation Case Still Intact?

SEEK earnings move from profit to loss draws fresh investor focus

SEEK (ASX:SEK) is back in the spotlight after its 2026 earnings announcement and follow up earnings call in mid August. Full year revenue reached A$1,284.2 million, while the company shifted from profit to a reported net loss.

See our latest analysis for SEEK.

SEEK's share price has been volatile around these results, with a 1 day share price return of 9.13% after the announcement, yet a year to date share price return that is down 35.07% and a 1 year total shareholder return that is down 38.06%. This points to short term momentum building after a weak longer term period.

If this kind of sharp move has you reassessing your options, it may be a good time to broaden your search and check out 4 top founder-led companies

SEEK now combines a larger revenue base with a swing into loss and a share price that has dropped sharply over 1 year but jumped on the latest results. The key issue is whether that mix is already reflected in the price.

Most Popular Narrative: 28.9% Undervalued

At a last close of A$15.18, the most followed narrative on SEEK points to a fair value of A$21.34. That gap rests on a specific view of how the business can grow from here.

The business is rapidly increasing its monetisation efficiency via variable or advanced ad pricing, premium performance features, and migration to a freemium model in high growth Asian markets, which together are driving yield expansion even in periods of flat or declining job ad volumes. This model both defends margins and sets a foundation for outsized earnings growth as ad volumes and macro conditions recover.

Read the complete narrative.

Want to see what sits behind that projected step up in SEEK's earnings power? The narrative leans heavily on revenue growth, margin rebuild and a richer earnings multiple, all filtered through a 9.07% discount rate.

Result: Fair Value of A$21.34 (UNDERVALUED)

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

However, the SEEK narrative still hinges on uncertain outcomes, including flat ANZ job ad volumes and the freemium push in Asia not yet delivering consistent revenue growth.

Find out about the key risks to this SEEK narrative.

Next Steps

With SEEK sitting at the crossroads of concern and optimism, it helps to move quickly, review the full picture and decide for yourself. You can start by weighing both sides of the story with our breakdown of 2 key rewards and 2 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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