We’ve recently updated our valuation analysis.

West Fraser Timber Valuation

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

Valuation 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 WFG?

Other financial metrics that can be useful for relative valuation.

WFG 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/Revenue0.6x
Enterprise Value/EBITDA1.8x
PEG Ratio-0.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for WFG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average5.5x
CFP Canfor
3.4x-31.8%CA$3.3b
SJ Stella-Jones
12.9x2.9%CA$2.9b
IFP Interfor
1.9x-69.2%CA$1.4b
WEF Western Forest Products
3.9xn/aCA$437.1m
WFG West Fraser Timber
3x-31.1%CA$9.8b

Price-To-Earnings vs Peers: WFG is good value based on its Price-To-Earnings Ratio (3x) compared to the peer average (5.5x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-28.3%
n/an/an/a

Price-To-Earnings vs Industry: WFG is good value based on its Price-To-Earnings Ratio (3x) compared to the Global Forestry industry average (10.3x)


Price to Earnings Ratio vs Fair Ratio

What is WFG'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.

WFG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3x
Fair PE Ratio5.9x

Price-To-Earnings vs Fair Ratio: WFG is good value based on its Price-To-Earnings Ratio (3x) compared to the estimated Fair Price-To-Earnings Ratio (5.9x).


Share Price vs Fair Value

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

Below Fair Value: WFG (CA$116.05) is trading above our estimate of fair value (CA$61.21)

Significantly Below Fair Value: WFG 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 WFG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$116.05
CA$135.61
+16.9%
7.7%CA$150.00CA$121.06n/a5
Jan ’24CA$97.77
CA$135.81
+38.9%
9.7%CA$150.00CA$120.00n/a5
Dec ’23CA$106.16
CA$139.50
+31.4%
8.8%CA$150.00CA$120.00n/a4
Nov ’23CA$103.89
CA$140.75
+35.5%
8.8%CA$150.00CA$120.00n/a4
Oct ’23CA$99.93
CA$163.00
+63.1%
12.2%CA$190.00CA$143.00n/a3
Sep ’23CA$112.91
CA$163.00
+44.4%
12.2%CA$190.00CA$143.00n/a3
Aug ’23CA$119.89
CA$163.00
+36.0%
12.2%CA$190.00CA$143.00n/a3
Jul ’23CA$98.77
CA$159.67
+61.7%
13.5%CA$190.00CA$143.00n/a3
Jun ’23CA$111.75
CA$161.22
+44.3%
10.6%CA$190.00CA$146.00n/a4
May ’23CA$112.91
CA$156.22
+38.4%
14.6%CA$190.00CA$126.00n/a4
Apr ’23CA$99.42
CA$156.22
+57.1%
9.0%CA$180.00CA$143.00n/a4
Mar ’23CA$127.05
CA$156.22
+23.0%
9.0%CA$180.00CA$143.00n/a4
Feb ’23CA$120.54
CA$156.22
+29.6%
9.0%CA$180.00CA$143.00CA$117.014
Jan ’23CA$120.68
CA$147.22
+22.0%
15.0%CA$180.00CA$120.00CA$97.774
Dec ’22CA$106.35
CA$143.19
+34.6%
13.9%CA$175.00CA$120.00CA$106.164
Nov ’22CA$99.19
CA$143.19
+44.4%
13.9%CA$175.00CA$120.00CA$103.894
Oct ’22CA$107.44
CA$141.94
+32.1%
12.7%CA$170.00CA$120.00CA$99.934
Sep ’22CA$95.21
CA$143.23
+50.4%
12.5%CA$170.00CA$120.00CA$112.914
Aug ’22CA$89.49
CA$143.73
+60.6%
12.4%CA$170.00CA$120.00CA$119.894
Jul ’22CA$88.99
CA$138.08
+55.2%
15.4%CA$170.00CA$111.33CA$98.774
Jun ’22CA$93.37
CA$138.08
+47.9%
15.4%CA$170.00CA$111.33CA$111.754
May ’22CA$94.90
CA$123.68
+30.3%
16.8%CA$145.00CA$89.73CA$112.914
Apr ’22CA$92.40
CA$100.75
+9.0%
25.1%CA$130.00CA$58.00CA$99.425
Mar ’22CA$85.76
CA$102.75
+19.8%
26.8%CA$130.00CA$58.00CA$127.054
Feb ’22CA$85.18
CA$92.26
+8.3%
24.1%CA$125.00CA$56.00CA$120.547

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


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