MELBOURNE, June 16 (Reuters Breakingviews) - PEXA needs work to justify the sky-scraping A$3 billion ($2.3 billion) valuation it’s building. The Australian online mortgage-settlement firm opened house on the financials that prompted bids from Carlyle (CG.O) and KKR (KKR.N). Management and owners including Morgan Stanley (MS.N) opted for an initial public offering next month. That values PEXA at a dizzying 155 times its own estimated A$20 million net profit for the year to June 2022. Yet revenue growth may slow two-thirds to 13% as its near-total dominance of its sector restricts domestic expansion. The key is moving overseas to England and Wales to tap a A$640 million e-conveyancing market, which enables automatic digital completion of property sales and purchases. That could add A$41 million to the bottom line, assuming the company mirrors its 80% Australian market share, and the 8% net margin earmarked for next year. Factoring in that potential gain which could take years to generate implies a lofty 50 times earnings. With many big Australian IPOs struggling read more this year, PEXA’s towering swagger stands out. [By Antony Currie] On Twitter http://twitter.com/breakingviews Capital Calls - More concise insights on global finance: Mizuho executives take pointless pay cuts read more Corporate America blowback read more U.S. and EU bury trade hatchet in China’s back read more SoFi lands a Wall Street internship read more Emirates joins airlines’ high-loss club read more