Goodman Group (ASX:GMG) Could Be 11% Undervalued Following Its Data Centre Pivot

Simply Wall St.07-02

Goodman Group (ASX:GMG) is drawing attention after confirming data centres now account for 73% of its A$14.5b development work in progress, with projects expected to reach about A$18b by June. See our...

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See our...</p>\n\n<a href=\"https://simplywall.st/stocks/au/real-estate/asx-gmg/goodman-group-shares/news/goodman-group-asxgmg-could-be-11-undervalued-following-its-d\">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>Goodman Group (ASX:GMG) Could Be 11% Undervalued Following Its Data Centre Pivot</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\">\nGoodman Group (ASX:GMG) Could Be 11% Undervalued Following Its Data Centre Pivot\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-07-02 17:43 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/au/real-estate/asx-gmg/goodman-group-shares/news/goodman-group-asxgmg-could-be-11-undervalued-following-its-d><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Goodman Group (ASX:GMG) is drawing attention after confirming data centres now account for 73% of its A$14.5b development work in progress, with projects expected to reach about A$18b by June. See our...</p>\n\n<a href=\"https://simplywall.st/stocks/au/real-estate/asx-gmg/goodman-group-shares/news/goodman-group-asxgmg-could-be-11-undervalued-following-its-d\">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":"GMG.AU","symbol_name":"GOODMAN GROUP","start_time":0,"source_url":"https://simplywall.st/stocks/au/real-estate/asx-gmg/goodman-group-shares/news/goodman-group-asxgmg-could-be-11-undervalued-following-its-d","article_id":"2648550248","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9551732-choice1-main-header/1585186732782"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/au/real-estate/asx-gmg/goodman-group-shares/news/goodman-group-asxgmg-could-be-11-undervalued-following-its-d","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2648550248","pubTimestamp":1782985433,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Goodman Group (ASX:GMG) is drawing attention after confirming data centres now account for 73% of its A$14.5b development work in progress, with projects expected to reach about A$18b by June.\nSee our latest analysis for Goodman Group.\nAgainst this backdrop, Goodman Group’s recent data centre update comes as the share price has eased over the past week and month, yet remains higher on a 90 day view. The 3 year total shareholder return of 55.81% contrasts with a 1 year total shareholder return...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"GMG.AU":"GOODMAN GROUP","BK7510":"REITs概念","BK7155":"工业房地产信托","BK7099":"工业房地产投资信托","WIP":"SPDR FTSE International Government Inflation-Protected Bond ETF"},"translate_title":"Goodman Group(ASX：GMG)在数据中心转型后可能被低估11%","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"WIP":1,"GMG.AU":1.5},"content_text":"Goodman Group (ASX:GMG) is drawing attention after confirming data centres now account for 73% of its A$14.5b development work in progress, with projects expected to reach about A$18b by June. See our latest analysis for Goodman Group. Against this backdrop, Goodman Group’s recent data centre update comes as the share price has eased over the past week and month, yet remains higher on a 90 day view. The 3 year total shareholder return of 55.81% contrasts with a 1 year total shareholder return that declined 10.18%, which hints at strong long term backing but cooler recent momentum as investors reassess property risk. If the pivot to digital infrastructure has your attention, it may be worth widening the search using a screener focused on AI infrastructure stocks such as 53 AI infrastructure stocks So, with Goodman Group shares easing over the short term but sitting above recent lows, and with data centres now dominating its A$14.5b pipeline, is the stock quietly undervalued, or is the market already pricing in future growth? AdvertisementMost Popular Narrative: 10.8% Undervalued Goodman Group's most followed narrative pegs fair value at A$34.64 per share, which sits above the recent A$30.90 close and frames the current data centre pivot through a long term lens.  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.  Read the complete narrative. Want to understand why this narrative still sees upside even after a strong multi year shareholder return? The fair value hinges on faster revenue expansion, much higher margins and a rich future earnings multiple that sits above the wider sector. Curious which assumptions matter most and how sensitive that A$34.64 figure is to them? The full narrative breaks down each moving part so you can test it against your own view. Result: Fair Value of A$34.64 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, for this Goodman Group narrative to hold, heavy data centre investment and any slowdown in external capital partnerships could pressure returns and delay rental income from new projects. Find out about the key risks to this Goodman Group narrative. Another View: Goodman Group Looks Expensive On Earnings While the most followed Goodman Group narrative leans on fair value of A$34.64 per share, the current A$30.90 price sits on a P/E of 37.4x. That is more than double the Australian Industrial REITs average of 15.2x and above a fair ratio of 16.7x, which points to a valuation that already bakes in a lot of optimism. If growth or margins land closer to the middle of analyst expectations, how much room is left for error? For a closer look at how this earnings multiple gap might affect your risk and return trade off, See what the numbers say about this price — find out in our valuation breakdown. ASX:GMG P/E Ratio as at Jul 2026Next Steps Reading mixed signals on Goodman Group's valuation and growth story? Take a closer look at the underlying data, weigh the upside against the issues, and review the 3 key rewards and 1 important warning sign. Looking for more investment ideas beyond Goodman Group? If Goodman Group has sharpened your focus on quality and valuation, do not stop there. Broaden your watchlist with other stocks that fit different roles in your portfolio.  Target potential mispricings by scanning for companies that combine quality with attractive valuations using the 8 high quality undervalued stocks. Strengthen your income stream by reviewing dependable payers highlighted in the 5 dividend fortresses. Dial down portfolio risk by checking companies that stand out in the 9 resilient stocks with low risk scores.   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? 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