The long-term results produced by ASX growth shares are really impressive. Great profit growth, big share price returns and impressive outlooks.
Since investing is about making money, these sorts of growth stocks can make compelling investments. But, I wouldn't say excellent businesses are worth a buy at any price – the valuation needs to make sense.
In this article, I'm going to look at what I view as the highest-quality businesses around. I'm going to look at whether either of them are a good value buy right now.
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Pro Medicus Ltd (ASX: PME)
Pro Medicus has a good claim to be one of the very best businesses in Australia, in my opinion.
The company describes itself as a leading healthcare informatics company. It provides a full range of medical imaging software and services to hospitals, imaging centres and healthcare groups worldwide.
The software is clearly resonating with customers because it regularly wins large clients in the US which are looking for the highest-tech and most efficient way to run their medical operations.
The fact that Pro Medicus' offering is digital allows it to generate very high profit margins. In the FY25 half-year result, it reported an operating profit (EBIT) margin of 72%, up from 66% in the first half of FY24. Being able to remotely implement the software with clients has also helped the business grow its margins even further in the last few years.
It seems like the ASX growth share's net profit is destined to continue rising at a strong pace – after rising 42.7% in HY25 – thanks to new contract wins, and contract renewals at a higher contracted rate than the prior agreement.
Pro Medicus' share price has soared 57% since 7 April 2025, so it's not as cheap as it was a month and a half ago. According to Commsec, it's priced at 249x FY25's estimated earnings and 113x FY27's estimated earnings.
If the company can continue its rapid profit growth beyond FY27, then it may well prove to be good long-term value today.
REA Group Ltd (ASX: REA)
REA Group is another very high-quality ASX growth share which has ended up dominating its industry over the past 20 years.
Its crown jewel is the realestate.com.au property portal, though it has numerous other property-related Australian businesses related to commercial property, property data, mortgage broking and more.
In the third quarter of FY25, realestate.com.au saw 133.4 million average monthly visits, 3.9 times more visits than the nearest competitor each month on average. This visitation strength attracts the most buyers, wanting to put their property in front of the most prospective buyers. This allows the ASX growth share to regularly increase its advertising price with little detrimental impact.
In the three months to 31 March 2025, REA Group reported revenue growth of 12%, operating profit (EBITDA) growth of 15% and free cash flow growth of 19%. That's a solid growth rate, driven by vendors paying more and increasingly signing up for more advertising features. An increase in listings could help increase profit, though I'm not counting on material listings growth to happen.
One of the most exciting features of this business is REA India, a business REA Group is the majority owner of. India has a huge population which is steadily adoption digital tools like property search. In the FY25 third quarter, REA India's revenue surged 28% thanks to strong growth in adjacency services on the Housing Edge platform. In ten years, I think this division could be an essential profit contributor to the ASX growth share.
According to the forecasts on Commsec, the REA Group share price is valued at 58x FY25's estimated earnings. Its earnings multiple is cheaper, though its profit may not grow as strongly as Pro Medicus' in the next few years.
I think both of these businesses are attractive, though they may not the best ASX growth shares out there.
