We’ve recently updated our valuation analysis.

Wesfarmers Valuation

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

[object Object] Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

WES key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.8x
Enterprise Value/EBITDA17.6x
PEG Ratio3.6x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average18.2x
HVN Harvey Norman Holdings
6.6x-10.0%AU$5.4b
TRS Reject Shop
20.5x26.9%AU$162.2m
DLTR Dollar Tree
20.5x7.6%US$33.1b
DG Dollar General
23x8.0%US$53.3b
WES Wesfarmers
23.6x6.6%AU$55.6b

Price-To-Earnings vs Peers: WES is expensive based on its Price-To-Earnings Ratio (23.6x) compared to the peer average (18.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a5.2%
n/an/an/a

Price-To-Earnings vs Industry: WES is expensive based on its Price-To-Earnings Ratio (23.6x) compared to the Global Multiline Retail industry average (15.3x)


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 Ratio23.6x
Fair PE Ratio22.1x

Price-To-Earnings vs Fair Ratio: WES is expensive based on its Price-To-Earnings Ratio (23.6x) compared to the estimated Fair Price-To-Earnings Ratio (22.1x).


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$49) is trading above our estimate of fair value (A$39.61)

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


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$49.00
AU$47.99
-2.1%
14.2%AU$64.10AU$38.70n/a15
Nov ’23AU$46.09
AU$47.89
+3.9%
13.9%AU$63.50AU$38.70n/a15
Oct ’23AU$42.72
AU$48.35
+13.2%
13.6%AU$63.50AU$38.70n/a15
Sep ’23AU$46.69
AU$48.65
+4.2%
13.3%AU$63.50AU$38.90n/a15
Aug ’23AU$46.75
AU$48.02
+2.7%
14.5%AU$61.90AU$35.90n/a15
Jul ’23AU$42.15
AU$49.41
+17.2%
13.4%AU$61.90AU$40.00n/a15
Jun ’23AU$47.58
AU$51.72
+8.7%
13.3%AU$64.20AU$39.40n/a15
May ’23AU$49.41
AU$52.30
+5.8%
12.8%AU$66.10AU$38.60n/a15
Apr ’23AU$49.59
AU$52.30
+5.5%
12.8%AU$66.10AU$38.60n/a15
Mar ’23AU$48.61
AU$53.27
+9.6%
10.9%AU$66.10AU$39.50n/a14
Feb ’23AU$52.80
AU$56.72
+7.4%
11.4%AU$66.10AU$39.50n/a14
Jan ’23AU$59.30
AU$57.08
-3.7%
12.2%AU$66.10AU$39.50n/a14
Dec ’22AU$57.04
AU$56.37
-1.2%
11.9%AU$66.10AU$39.50AU$49.0014
Nov ’22AU$58.29
AU$56.44
-3.2%
12.2%AU$66.10AU$39.50AU$46.0914
Oct ’22AU$54.72
AU$56.10
+2.5%
11.7%AU$66.10AU$39.50AU$42.7214
Sep ’22AU$57.97
AU$56.49
-2.6%
11.8%AU$66.10AU$39.50AU$46.6913
Aug ’22AU$61.14
AU$54.63
-10.7%
13.3%AU$66.10AU$37.50AU$46.7513
Jul ’22AU$58.63
AU$53.92
-8.0%
13.1%AU$66.10AU$37.50AU$42.1513
Jun ’22AU$55.39
AU$53.78
-2.9%
13.4%AU$66.10AU$37.50AU$47.5814
May ’22AU$54.11
AU$53.78
-0.6%
13.4%AU$66.10AU$37.50AU$49.4114
Apr ’22AU$53.02
AU$53.40
+0.7%
13.4%AU$65.00AU$37.50AU$49.5914
Mar ’22AU$50.73
AU$53.41
+5.3%
12.2%AU$61.50AU$37.50AU$48.6116
Feb ’22AU$55.22
AU$48.40
-12.4%
9.8%AU$55.83AU$35.50AU$52.8014
Jan ’22AU$50.40
AU$48.01
-4.7%
9.5%AU$55.83AU$35.50AU$59.3014
Dec ’21AU$50.13
AU$47.64
-5.0%
8.8%AU$52.70AU$35.50AU$57.0414

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


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