Wesfarmers Limited

ASX:WES Stock Report

Market Cap: AU$84.3b

Wesfarmers Valuation

Is WES undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of WES when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WES (A$74.3) is trading above our estimate of fair value (A$43.02)

Significantly Below Fair Value: WES is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WES?

Key metric: As WES is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for WES. This is calculated by dividing WES's market cap by their current earnings.
What is WES's PE Ratio?
PE Ratio33x
EarningsAU$2.56b
Market CapAU$84.33b

Price to Earnings Ratio vs Peers

How does WES's PE Ratio compare to its peers?

The above table shows the PE ratio for WES vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.2x
HVN Harvey Norman Holdings
17.3x9.0%AU$6.1b
MYR Myer Holdings
23.1x6.2%AU$1.0b
JD JD.com
11.3x8.4%US$53.2b
CPNG Coupang
41x30.0%US$42.5b
WES Wesfarmers
33x8.2%AU$84.3b

Price-To-Earnings vs Peers: WES is expensive based on its Price-To-Earnings Ratio (33x) compared to the peer average (23.2x).

Price to Earnings Ratio vs Industry

How does WES's PE Ratio compare vs other companies in the Global Multiline Retail Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
WES 33.0xIndustry Avg. 22.4xNo. of Companies22PE01632486480+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WES is expensive based on its Price-To-Earnings Ratio (33x) compared to the Global Multiline Retail industry average (22.4x).

Price to Earnings Ratio vs Fair Ratio

What is WES's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WES PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio33x
Fair PE Ratio27.2x

Price-To-Earnings vs Fair Ratio: WES is expensive based on its Price-To-Earnings Ratio (33x) compared to the estimated Fair Price-To-Earnings Ratio (27.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst WES forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$74.30
AU$64.87
-12.7%
12.2%AU$77.10AU$44.50n/a14
Dec ’25AU$71.83
AU$64.87
-9.7%
12.2%AU$77.10AU$44.50n/a14
Nov ’25AU$66.62
AU$64.68
-2.9%
12.1%AU$77.10AU$44.50n/a14
Oct ’25AU$70.59
AU$64.27
-9.0%
13.0%AU$77.10AU$43.00n/a14
Sep ’25AU$72.60
AU$63.48
-12.6%
14.2%AU$79.30AU$43.00n/a15
Aug ’25AU$73.72
AU$60.71
-17.7%
12.8%AU$72.10AU$43.00n/a15
Jul ’25AU$65.16
AU$59.02
-9.4%
11.8%AU$68.80AU$43.00n/a15
Jun ’25AU$64.89
AU$59.02
-9.0%
11.8%AU$68.80AU$43.00n/a15
May ’25AU$66.01
AU$58.07
-12.0%
11.0%AU$68.80AU$43.00n/a15
Apr ’25AU$68.40
AU$57.89
-15.4%
10.5%AU$66.60AU$43.00n/a15
Mar ’25AU$66.39
AU$57.66
-13.1%
10.8%AU$66.60AU$43.00n/a15
Feb ’25AU$58.02
AU$52.67
-9.2%
10.9%AU$62.90AU$42.00n/a14
Jan ’25AU$57.04
AU$51.28
-10.1%
10.3%AU$57.55AU$42.00n/a14
Dec ’24AU$52.21
AU$51.29
-1.8%
10.6%AU$57.55AU$42.00AU$71.8314
Nov ’24AU$51.02
AU$51.50
+0.9%
10.2%AU$57.55AU$42.00AU$66.6214
Oct ’24AU$52.86
AU$51.79
-2.0%
10.4%AU$61.15AU$42.00AU$70.5914
Sep ’24AU$53.85
AU$51.33
-4.7%
10.7%AU$61.15AU$42.00AU$72.6015
Aug ’24AU$50.15
AU$49.80
-0.7%
11.8%AU$62.90AU$40.00AU$73.7215
Jul ’24AU$49.34
AU$49.79
+0.9%
11.3%AU$62.90AU$42.00AU$65.1615
Jun ’24AU$47.93
AU$49.85
+4.0%
11.3%AU$62.90AU$42.00AU$64.8915
May ’24AU$52.06
AU$50.10
-3.8%
12.2%AU$64.10AU$42.00AU$66.0114
Apr ’24AU$50.25
AU$49.83
-0.8%
12.3%AU$64.10AU$42.00AU$68.4015
Mar ’24AU$48.25
AU$49.96
+3.5%
12.1%AU$64.10AU$42.00AU$66.3915
Feb ’24AU$49.65
AU$48.61
-2.1%
12.8%AU$64.10AU$41.00AU$58.0215
Jan ’24AU$45.91
AU$48.12
+4.8%
13.9%AU$64.10AU$40.00AU$57.0415
Dec ’23AU$49.00
AU$47.99
-2.1%
14.2%AU$64.10AU$38.70AU$52.2115

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/17 05:02
End of Day Share Price 2024/12/17 00:00
Earnings2024/06/30
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Wesfarmers Limited is covered by 29 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Russell WrightAPP Securities Pty Ltd.
Russell WrightBarclay Pearce Capital Pty Limited
Thomas KierathBarrenjoey Markets Pty Limited