We’ve recently updated our valuation analysis.

Western Forest Products Valuation

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

[object Object] Score

3/6

Valuation Score 3/6

  • 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 WEF?

Other financial metrics that can be useful for relative valuation.

WEF 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/Revenue0.2x
Enterprise Value/EBITDA1.9x
PEG Ratio-0.06x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for WEF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average5.2x
ADN Acadian Timber
12.8x-6.9%CA$256.8m
IFP Interfor
1.8x-74.8%CA$1.3b
CFF Conifex Timber
3.1xn/aCA$67.6m
CFP Canfor
3x-35.2%CA$2.9b
WEF Western Forest Products
3.2x-50.9%CA$357.9m

Price-To-Earnings vs Peers: WEF is good value based on its Price-To-Earnings Ratio (3.2x) compared to the peer average (5.2x).


Price to Earnings Ratio vs Industry

How does WEF's PE Ratio compare vs other companies in the Global Forestry Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-26.4%
n/an/an/a

Price-To-Earnings vs Industry: WEF is good value based on its Price-To-Earnings Ratio (3.2x) compared to the Global Forestry industry average (9.9x)


Price to Earnings Ratio vs Fair Ratio

What is WEF'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.

WEF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.2x
Fair PE Ratio2.1x

Price-To-Earnings vs Fair Ratio: WEF is expensive based on its Price-To-Earnings Ratio (3.2x) compared to the estimated Fair Price-To-Earnings Ratio (2.1x).


Share Price vs Fair Value

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

Below Fair Value: WEF (CA$1.13) is trading above our estimate of fair value (CA$0.61)

Significantly Below Fair Value: WEF 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 WEF forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$1.13
CA$1.65
+46.0%
14.1%CA$2.00CA$1.40n/a5
Nov ’23CA$1.26
CA$1.93
+53.2%
14.9%CA$2.50CA$1.75n/a5
Oct ’23CA$1.32
CA$2.31
+75.0%
23.7%CA$3.25CA$1.75n/a5
Sep ’23CA$1.53
CA$2.32
+51.6%
23.2%CA$3.25CA$1.75n/a5
Aug ’23CA$1.49
CA$2.30
+54.4%
24.2%CA$3.25CA$1.75n/a5
Jul ’23CA$1.45
CA$2.55
+75.9%
19.0%CA$3.25CA$1.75n/a5
Jun ’23CA$1.83
CA$2.70
+47.5%
12.3%CA$3.25CA$2.25n/a5
May ’23CA$2.06
CA$2.65
+28.6%
14.1%CA$3.25CA$2.25n/a5
Apr ’23CA$2.00
CA$2.75
+37.5%
10.0%CA$3.25CA$2.50n/a5
Mar ’23CA$2.11
CA$2.75
+30.3%
10.0%CA$3.25CA$2.50n/a5
Feb ’23CA$2.07
CA$2.63
+27.1%
8.7%CA$2.90CA$2.25n/a5
Jan ’23CA$2.11
CA$2.53
+19.9%
13.6%CA$2.90CA$2.00n/a5
Dec ’22CA$1.83
CA$2.53
+38.3%
13.6%CA$2.90CA$2.00CA$1.135
Nov ’22CA$2.25
CA$2.78
+23.6%
6.1%CA$3.00CA$2.50CA$1.265
Oct ’22CA$2.25
CA$2.75
+22.2%
3.4%CA$2.90CA$2.60CA$1.325
Sep ’22CA$2.10
CA$2.82
+34.3%
5.6%CA$3.00CA$2.60CA$1.535
Aug ’22CA$1.93
CA$2.82
+46.1%
5.6%CA$3.00CA$2.60CA$1.495
Jul ’22CA$2.11
CA$2.88
+36.5%
3.9%CA$3.00CA$2.75CA$1.455
Jun ’22CA$2.19
CA$2.88
+31.5%
3.9%CA$3.00CA$2.75CA$1.835
May ’22CA$2.12
CA$2.47
+16.5%
6.8%CA$2.75CA$2.25CA$2.065
Apr ’22CA$1.85
CA$2.10
+13.5%
8.8%CA$2.25CA$1.85CA$2.005
Mar ’22CA$1.74
CA$1.85
+6.3%
10.0%CA$2.00CA$1.50CA$2.115
Feb ’22CA$1.32
CA$1.58
+19.7%
6.5%CA$1.75CA$1.50CA$2.075
Jan ’22CA$1.28
CA$1.36
+6.3%
13.4%CA$1.50CA$1.05CA$2.115
Dec ’21CA$0.96
CA$1.18
+22.9%
12.2%CA$1.40CA$1.00CA$1.835

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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