Anywhere Real Estate Surges 220% in 2025: Undervalued or Overvalued?

Anywhere Real Estate stock has surged 222.2% YTD, with a 47.7% gain over the past week and a 104.3% return over the last 12 months. The company meets 5 out of 6 key undervaluation criteria, giving it a value score of 5. A discounted cash flow analysis shows that Anywhere Real Estate's free cash flow is expected to turn around, with a forecasted free cash flow of $118.2 Million by 2027 and potentially reaching over $255 Million by 2035.

Anywhere Real Estate Inc.'s stock has experienced a remarkable surge this year, with a 222.2% year-to-date (YTD) increase, a 47.7% gain over the past week, and a 104.3% return over the last 12 months. This significant performance has been driven by the company's merger agreement with Compass Inc., announced on September 22, 2025. The deal, which is expected to close in the second half of 2026, involves an all-stock transaction valued at approximately $10 billion, including the assumption of debt Compass announces combination with Anywhere Real Estate in all-stock transaction^[1].

Under the terms of the merger, each share of Anywhere common stock will be exchanged for 1.436 shares of Compass Class A common stock, representing a value of $13.01 per Anywhere common stock share based on Compass' 30 trading day volume weighted average price as of September 19. Upon completion, current Compass shareholders will own about 78% of the combined company on a fully diluted basis, while Anywhere shareholders will own roughly 22% Compass announces combination with Anywhere Real Estate in all-stock transaction^[1].

The merger pairs Compass' investment in technology, marketing offerings, and real estate professionals with Anywhere's leading brands, broader and complementary businesses, and global reach. This combination aims to create a premier real estate platform, enabling agents and franchisees to better serve home sellers and home buyers. The tie-up brings together approximately 340,000 real estate professionals globally onto a shared network operating in every major U.S. city and serving approximately 120 countries and territories Compass announces combination with Anywhere Real Estate in all-stock transaction^[1].

Anywhere's stock performance has been bolstered by its strong fundamentals. The company meets 5 out of 6 key undervaluation criteria, giving it a value score of 5. A discounted cash flow analysis shows that Anywhere Real Estate's free cash flow is expected to turn around, with a forecasted free cash flow of $118.2 million by 2027 and potentially reaching over $255 million by 2035 Compass: Anywhere Real Estate Deal Should Firepower EBITDA^[2].

The merger with Compass is expected to diversify Anywhere by adding over $1 billion in revenue from Anywhere's established franchise, title, and escrow, and relocation operations. The estimated 1.2 million transactions on a combined basis provide an opportunity to incorporate additional services and create more seamless transactions for home buyers and home sellers. Compass anticipates achieving $225+ million in non-GAAP OPEX synergies, net of dissynergies and friction costs, which are expected to drive significant free cash flow and a stronger combined balance sheet Compass announces combination with Anywhere Real Estate in all-stock transaction^[1].

Anywhere Real Estate's stock has seen significant gains, reflecting investor confidence in the company's strategic merger with Compass. The transaction is expected to significantly enhance Anywhere's market position and financial profile, positioning it for future growth as the real estate market rebounds.