WEG Valuation

Is WEGE3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 WEGE3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WEGE3 (R$38.78) is trading above our estimate of fair value (R$8.12)

Significantly Below Fair Value: WEGE3 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for WEGE3?

Other financial metrics that can be useful for relative valuation.

WEGE3 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/Revenue4.9x
Enterprise Value/EBITDA23x
PEG Ratio3.9x

Price to Earnings Ratio vs Peers

How does WEGE3's PE Ratio compare to its peers?

The above table shows the PE ratio for WEGE3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.4x
VRT Vertiv Holdings Co
68.6x29.5%US$31.3b
ROK Rockwell Automation
26.9x10.0%US$32.4b
LR Legrand
22x4.5%€25.3b
AME AMETEK
32x8.1%US$42.3b
28.4x7.2%R$163.8b

Price-To-Earnings vs Peers: WEGE3 is good value based on its Price-To-Earnings Ratio (28.4x) compared to the peer average (37.4x).


Price to Earnings Ratio vs Industry

How does WEGE3's PE Ratio compare vs other companies in the Global Electrical Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.8%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.8%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: WEGE3 is expensive based on its Price-To-Earnings Ratio (28.4x) compared to the Global Electrical industry average (24.6x).


Price to Earnings Ratio vs Fair Ratio

What is WEGE3'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.

WEGE3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.4x
Fair PE Ratio15.5x

Price-To-Earnings vs Fair Ratio: WEGE3 is expensive based on its Price-To-Earnings Ratio (28.4x) compared to the estimated Fair Price-To-Earnings Ratio (15.5x).


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 WEGE3 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR$38.78
R$42.54
+9.7%
8.6%R$50.00R$38.00n/a12
Mar ’25R$37.29
R$41.83
+12.2%
8.5%R$50.00R$38.00n/a12
Feb ’25R$32.63
R$41.58
+27.4%
8.9%R$50.00R$37.00n/a12
Jan ’25R$36.91
R$41.83
+13.3%
8.8%R$50.00R$37.00n/a12
Dec ’24R$34.78
R$42.00
+20.7%
9.2%R$50.00R$37.00n/a12
Nov ’24R$33.08
R$42.00
+27.0%
9.2%R$50.00R$37.00n/a12
Oct ’24R$36.27
R$45.10
+24.4%
9.8%R$52.00R$39.00n/a13
Sep ’24R$35.95
R$45.95
+27.8%
8.7%R$52.00R$39.00n/a12
Aug ’24R$39.86
R$44.34
+11.2%
12.4%R$52.00R$30.92n/a12
Jul ’24R$37.75
R$43.96
+16.5%
12.6%R$52.00R$30.92n/a13
Jun ’24R$37.19
R$44.48
+19.6%
12.4%R$52.00R$30.92n/a13
May ’24R$41.12
R$44.51
+8.3%
11.4%R$52.00R$30.92n/a16
Apr ’24R$40.55
R$43.85
+8.1%
11.8%R$52.00R$30.92n/a16
Mar ’24R$39.38
R$43.16
+9.6%
11.2%R$50.00R$30.92R$37.2915
Feb ’24R$38.39
R$44.50
+15.9%
9.6%R$52.00R$35.30R$32.6315
Jan ’24R$38.51
R$43.15
+12.0%
12.7%R$52.00R$30.92R$36.9116
Dec ’23R$38.31
R$41.27
+7.7%
16.5%R$52.00R$30.00R$34.7816
Nov ’23R$39.41
R$40.77
+3.5%
15.8%R$52.00R$30.00R$33.0816
Oct ’23R$32.14
R$38.13
+18.6%
17.8%R$52.00R$30.00R$36.2716
Sep ’23R$28.38
R$36.87
+29.9%
20.1%R$52.00R$26.00R$35.9515
Aug ’23R$27.88
R$37.54
+34.6%
20.7%R$52.00R$26.00R$39.8615
Jul ’23R$26.50
R$37.32
+40.8%
18.7%R$47.00R$26.00R$37.7513
Jun ’23R$26.21
R$38.70
+47.7%
17.4%R$47.00R$26.00R$37.1913
May ’23R$30.10
R$39.35
+30.7%
16.8%R$47.00R$26.00R$41.1212
Apr ’23R$35.38
R$40.12
+13.4%
17.1%R$50.00R$26.00R$40.5512
Mar ’23R$29.40
R$40.88
+39.0%
17.3%R$50.00R$26.00R$39.3813

Analyst Forecast: Target price is less than 20% higher than the current share price.


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