Wesfarmers Limited engages in the retail, coal mining and production, gas processing and distribution, industrial and safety product distribution, chemicals and fertilizers manufacturing, and investment businesses in Australia, New Zealand, the United Kingdom, and internationally. More info.
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (AUD, Millions)||A$2,634.50||A$3,020.85||A$3,238.88||A$3,196.88||A$3,316.47|
|Source||Analyst x4||Analyst x4||Analyst x4||Analyst x1||Extrapolated @ (3.74%)|
Discounted (@ 8.55%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = A$3,316 × (1 + 2.76%) ÷ (8.55% – 2.76%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
A$51,063 = A$12,025 + A$39,038
Value = Total value / Shares Outstanding (A$51,063 / 1,134)Discount to Share Price
Value per share:
Current discount (share price of A$43.72): 2.92%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 8.55% = 2.76% + (0.8 * 7.24%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value (A$49,571,484,800).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.559 = 0.519 (1 + (1- 30%) (10.92%))
Levered Beta used in calculation = 0.8
Mr. Robert G. Scott, also known as Rob, has been Managing Director of Wesfarmers Limited since November 14, 2017. Mr. Scott served as Deputy Chief Executive Officer at Wesfarmers Limited since February 14, 2017 until November 14, 2017. Mr. Scott served as Managing Director of Wesfarmers Industrials Division at Wesfarmers Limited since August 2015 until July 1, 2017. Mr. Scott served as Managing Director of Wesfarmers Chemicals, Energy & Fertilisers at Wesfarmers Limited since August 2015. Mr. Scott served as Finance Director of Coles at Wesfarmers Limited since February 1, 2013. He served as Finance Director at Coles Group Limited since February 1, 2013. Mr. Scott served as Managing Director of Financial Services at Wesfarmers Limited. He joined Wesfarmers in 1993. He has experience in investment banking and financial services with Deutsche Bank in Australia and Asia. He rejoined Wesfarmers in business development in 2004. Mr. Scott served as Managing Director of Insurance Division at Wesfarmers Ltd. from 2007 to February 2013. He served as Deputy Managing Director of Insurance Division of Wesfarmers Ltd. since June 2007 and Executive General Manager of Strategic Development for its Insurance Division since May 2006. Mr. Buckley worked for Wesfarmers from 1993 to 1994. Mr. Scott started with Wesfarmers in 1993 before moving into investment banking, where he held various roles in corporate finance and mergers and acquisitions in Australia and Asia. He rejoined Wesfarmers in business development in 2004. He served as the President of the Insurance Council of Australia. He served as Chairman of the Board at Lumley General Insurance (N.Z.) Limited. He served as a Director of the Insurance Council of Australia. He is dual Olympian in the sport of rowing and was a silver medallist at the Atlanta Olympics.
Average tenure and age of the Wesfarmers management team in years:
Average tenure and age of the Wesfarmers board of directors in years:
Below, I've laid out key growth figures on how market analysts perceive Wesfarmers's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. … ASX:WES Future Profit Dec 27th 17 Although it is helpful to be aware of the rate of growth year by year relative to today’s value, it may be more insightful to evaluate the rate at which the earnings are moving every year, on average. … The slope of this line is the rate of earnings growth, which in this case is 2.75%.Simply Wall St - – Full article
ASX:WES Historical Dividend Yield Dec 18th 17 Australia and New Zealand Banking Group Limited (ASX:ANZ) Australia and New Zealand Banking Group Limited, together with its subsidiaries, provides various banking and financial products and services to individual and business customers. … ASX:ANZ Historical Dividend Yield Dec 18th 17 Westpac Banking Corporation (ASX:WBC) Westpac Banking Corporation provides various banking and financial services in Australia, New Zealand, Asia, the Pacific region, and internationally. … ASX:WBC Historical Dividend Yield Dec 18th 17 For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.Simply Wall St - – Full article
See our latest analysis for WES Breaking down Return on Equity Return on Equity (ROE) is a measure of WES’s profit relative to its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is assessed against cost of equity, which is measured using the Capital Asset Pricing Model (CAPM) – but let’s not dive into the details of that today. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity ASX:WES Last Perf Dec 8th 17 Essentially, profit margin shows how much money the company makes after paying for all its expenses.Simply Wall St - – Full article
Despite there being some hiccups, dividends per share have increased during the past 10 years. … ASX:WES Historical Dividend Yield Nov 15th 17 Woolworths Limited (ASX:WOW) WOW has a good-sized dividend yield of 3.20% and is distributing 75.84% of earnings as dividends. … ASX:CCL Historical Dividend Yield Nov 15th 17 For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.Simply Wall St - – Full article
ASX:WES Historical Dividend Yield Oct 31st 17 Insurance Australia Group Limited (ASX:IAG) Insurance Australia Group Limited underwrites general insurance products. … ASX:IAG Historical Dividend Yield Oct 31st 17 Navitas Limited (ASX:NVT) Navitas Limited provides educational services for students and professionals in Australia, the United Kingdom, Europe, Asia, Canada, the United States, and internationally. … ASX:NVT Historical Dividend Yield Oct 31st 17 For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.Simply Wall St - – Full article
5-year cash flow forecast 2017 2018 2019 2020 2021 Levered FCF (AUD, Millions) $2,751.20 $2,676.03 $3,072.63 $3,286.30 $3,304.96 Source Analyst x3 Analyst x4 Analyst x4 Analyst x4 Analyst x1 Present Value Discounted @ 8.55% $2,534.45 $2,270.99 $2,402.13 $2,366.77 $2,192.69 Present value of next 5 years cash flows: $11,767 We now need to calculate the Terminal Value, which accounts for all the future cash flows after the 5 years. … Terminal Value Terminal Value = FCF2021 × (1 + g) ÷ (Discount Rate – g) Terminal Value = $3,305 × (1 + 2.8%) ÷ (8.6% – 2.8%) Terminal value based on the Perpetuity Method where growth (g) = 2.8%: $58,636 Present value of terminal value: $38,902 So the total value is the sum of the next 5 years cash flows and the terminal value discounted to today, this is known as the Equity Value. … Equity Value Equity Value (Total value) = Present value of next 5 years cash flows + terminal value = $11,767 + $38,902 = $50,669 To get the intrinsic value we divide this by the total number of shares outstanding, or the equivalent number if this is a depositary receipt or ADR to get the intrinsic value per share.Simply Wall St - – Full article
Wesfarmers Limited engages in the retail, coal mining and production, gas processing and distribution, industrial and safety product distribution, chemicals and fertilizers manufacturing, and investment businesses in Australia, New Zealand, the United Kingdom, and internationally. The company operates 801 Coles supermarkets; 883 liquor stores under the Liquorland, Vintage Cellars, and First Choice Liquor brands; 89 hotels; 702 convenience outlets; and an online supermarket. It also offers home, car, and landlord insurance products, as well as credit cards; home improvement and outdoor living products through warehouse stores, smaller format stores, trade centers, and frame and truss sites under the Bunnings name; apparel, homewares, and general merchandise through 303 Target stores and 220 Kmart stores, as well as through online; automotive services, repairs, and tires through 251 Kmart Tyre & Auto Service centers; and office products and solutions through Officeworks stores. In addition, the company supplies building materials; retails office and technology products; manufactures and supplies ammonia, ammonium nitrate, industrial chemicals, sodium cyanide, polyvinyl chloride resins, and wood-plastic composite decking and screening products; extracts and distributes LPG and LNG; and manufactures, imports, and distributes phosphate, nitrogen, and potassium-based fertilizers. Further, the company supplies industrial supplies and safety products; provides risk management and compliance services; offers industrial and corporate workwear; distributes industrial gas; and holds interests in the Curragh and the Bengalla coal mines. Wesfarmers Limited was founded in 1914 and is based in Perth, Australia.
Brookfield Place Tower 2,
Western Australia, 6000,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|ASX||WES||Ordinary Shares||Australian Securities Exchange||AU||AUD||02. Jan 1992|
|OTCPK||WFAF.F||Ordinary Shares||Pink Sheets LLC||US||USD||02. Jan 1992|
|DB||WF3||Ordinary Shares||Deutsche Boerse AG||DE||EUR||02. Jan 1992|
|CHIA||WES||Ordinary Shares||Chi-X Australia||AU||AUD||02. Jan 1992|
|OTCPK||WFAF.Y||ADR NEW 2014||Pink Sheets LLC||US||USD||16. Oct 2008|
|Hypermarkets and Super Centers|
|Company Analysis updated:||2018/01/19|
|Last estimates confirmation:||2018/01/14|
|Last earnings update:||2017/06/30|
|Last annual earnings update:||2017/06/30|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.