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    Goodman Group (ASX:GMG) Could Be 24% Undervalued On Data Center Growth Plans

    Simply Wall St·10/17/2026 00:37:10
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    Goodman Group (ASX:GMG) is back in focus after fresh attention on its expanding data center pipeline, along with new power and capital partnerships that some investors link to a perceived gap between price and estimated intrinsic value.

    Recent trading reflects that debate. Goodman Group’s share price is A$26.39, with the stock down 14.37% on a year to date share price basis and its 1-year total shareholder return declining 20.90%. However, the 3-year total shareholder return of 28.65% points to momentum built over a longer horizon.

    Scan the wider data center and infrastructure trend by comparing Goodman Group with a hand-picked set of 55 AI infrastructure stocks that could be preparing for their next significant phase.

    Goodman Group has given back a chunk of its recent gains, even as its data center plans and fresh cash flow projections attract fresh attention. Is most of the upside already behind the stock, or is the rerating only partly complete?

    Most Popular Narrative: 24% Undervalued

    Goodman Group’s most followed narrative places fair value at A$34.64 per share, well above the recent A$26.39 close. This puts the data center build out and capital partnerships in sharp focus for anyone weighing that gap.

    Acceleration in data center development, supported by secured power in high-barrier-to-entry metro locations and capital partnerships, positions Goodman to benefit from AI, cloud, and digital infrastructure demand, with a significant increase in Work-In-Progress (WIP) expected to drive revenue and long-term earnings growth.

    See why 82 investors see Goodman Group as 24% undervalued.

    Result: Fair Value of A$34.64 (UNDERVALUED)

    Still, the Goodman Group story can shift quickly if large data center projects face execution delays or if external capital partners pull back on funding commitments.

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

    Another View: Goodman Group Looks Expensive On Earnings

    The DCF and fair value narrative suggest Goodman Group is worth between A$33.19 and A$34.64 per share, indicating potential upside from the A$26.39 price. Through a simple earnings lens, however, the picture is tighter. The stock trades on a P/E of 19.4x compared with a fair ratio of 12.7x, the Australian Industrial REITs average of 11.5x, and the global peer mark of 15.3x. That richer multiple can indicate paying a premium for quality or taking on more valuation risk if the data center story does not play out as expected, so investors need to consider which side of that trade they are comfortable supporting.

    See what the numbers say about this price — find out in our valuation breakdown.

    ASX:GMG P/E Ratio as at Oct 2026
    ASX:GMG P/E Ratio as at Oct 2026

    Next Steps

    Curious whether the crowd optimism around Goodman Group really fits your own risk profile and return expectations? Take a few minutes to test the thesis against the data yourself, then weigh it against the 4 key rewards.

    Looking for more investment ideas beyond Goodman Group?

    If Goodman Group has sharpened your thinking, do not stop with a single stock. Apply the same disciplined approach to new ideas before allocating capital elsewhere.

    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.