Wesfarmers Limited

CHIA:WES Stock Report

Market Cap: AU$79.1b

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$69.45) is trading above our estimate of fair value (A$43.32)

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 Ratio30.9x
EarningsAU$2.56b
Market CapAU$79.06b

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 Average22x
HVN Harvey Norman Holdings
16.5x9.1%AU$5.8b
MYR Myer Holdings
19.1x2.5%AU$828.7m
JD JD.com
10.6x8.2%US$51.0b
CPNG Coupang
41.9x30.1%US$43.1b
WES Wesfarmers
30.9x8.2%AU$79.1b

Price-To-Earnings vs Peers: WES is expensive based on its Price-To-Earnings Ratio (30.9x) compared to the peer average (22x).

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 30.9xIndustry Avg. 19.9xNo. of Companies20PE01632486480+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WES is expensive based on its Price-To-Earnings Ratio (30.9x) compared to the Global Multiline Retail industry average (19.9x).

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 Ratio30.9x
Fair PE Ratio27.2x

Price-To-Earnings vs Fair Ratio: WES is expensive based on its Price-To-Earnings Ratio (30.9x) 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$69.45
AU$64.87
-6.6%
12.2%AU$77.10AU$44.50n/a14
Nov ’25AU$66.56
AU$64.68
-2.8%
12.1%AU$77.10AU$44.50n/a14
Oct ’25AU$70.36
AU$64.27
-8.7%
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$73.80
AU$60.71
-17.7%
12.8%AU$72.10AU$43.00n/a15
Jul ’25AU$65.00
AU$59.02
-9.2%
11.8%AU$68.80AU$43.00n/a15
Jun ’25AU$64.72
AU$59.02
-8.8%
11.8%AU$68.80AU$43.00n/a15
May ’25AU$66.06
AU$58.07
-12.1%
11.0%AU$68.80AU$43.00n/a15
Apr ’25AU$68.23
AU$57.89
-15.2%
10.5%AU$66.60AU$43.00n/a15
Mar ’25AU$66.22
AU$57.66
-12.9%
10.8%AU$66.60AU$43.00n/a15
Feb ’25AU$58.00
AU$52.67
-9.2%
10.9%AU$62.90AU$42.00n/a14
Jan ’25AU$56.91
AU$51.28
-9.9%
10.3%AU$57.55AU$42.00n/a14
Dec ’24AU$52.30
AU$51.29
-1.9%
10.6%AU$57.55AU$42.00n/a14
Nov ’24AU$50.91
AU$51.50
+1.2%
10.2%AU$57.55AU$42.00AU$66.5614
Oct ’24AU$52.79
AU$51.79
-1.9%
10.4%AU$61.15AU$42.00AU$70.3614
Sep ’24AU$53.86
AU$51.33
-4.7%
10.7%AU$61.15AU$42.00AU$72.6015
Aug ’24AU$50.12
AU$49.80
-0.6%
11.8%AU$62.90AU$40.00AU$73.8015
Jul ’24AU$49.31
AU$49.79
+1.0%
11.3%AU$62.90AU$42.00AU$65.0015
Jun ’24AU$48.02
AU$49.85
+3.8%
11.3%AU$62.90AU$42.00AU$64.7215
May ’24AU$52.17
AU$50.10
-4.0%
12.2%AU$64.10AU$42.00AU$66.0614
Apr ’24AU$50.36
AU$49.83
-1.1%
12.3%AU$64.10AU$42.00AU$68.2315
Mar ’24AU$48.25
AU$49.96
+3.5%
12.1%AU$64.10AU$42.00AU$66.2215
Feb ’24AU$49.65
AU$48.61
-2.1%
12.8%AU$64.10AU$41.00AU$58.0015
Jan ’24AU$45.84
AU$48.12
+5.0%
13.9%AU$64.10AU$40.00AU$56.9115
Dec ’23AU$48.89
AU$47.99
-1.8%
14.2%AU$64.10AU$38.70AU$52.3015
Nov ’23AU$45.94
AU$47.89
+4.2%
13.9%AU$63.50AU$38.70AU$50.9115

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

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