West Fraser Timber Co. Ltd.

TSX:WFG Stock Report

Market Cap: CA$10.3b

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

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

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$128.73) is trading below our estimate of fair value (CA$414.07)

Significantly Below Fair Value: WFG is trading below fair value by more than 20%.

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/Revenue1.1x
Enterprise Value/EBITDA11.6x
PEG Ration/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for WFG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.2x
SJ Stella-Jones
1.4x6.8%CA$4.9b
CFP Canfor
0.4x5.3%CA$2.0b
IFP Interfor
0.3x5.8%CA$1.0b
ADN Acadian Timber
2.6x-5.4%CA$311.8m
WFG West Fraser Timber
1.2x4.8%CA$10.3b

Price-To-Sales vs Peers: WFG is expensive based on its Price-To-Sales Ratio (1.2x) compared to the peer average (1.2x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a44.0%
 n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a44.0%
 n/an/an/a
No more companies

Price-To-Sales vs Industry: WFG is expensive based on its Price-To-Sales Ratio (1.2x) compared to the Global Forestry industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is WFG's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WFG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.2x
Fair PS Ratio1.6x

Price-To-Sales vs Fair Ratio: WFG is good value based on its Price-To-Sales Ratio (1.2x) compared to the estimated Fair Price-To-Sales Ratio (1.6x).

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$128.73
CA$144.50
+12.3%
13.5%CA$164.00CA$125.00n/a2
Oct ’25CA$132.10
CA$133.50
+1.1%
3.4%CA$138.00CA$129.00n/a2
Sep ’25CA$119.25
CA$133.50
+11.9%
3.4%CA$138.00CA$129.00n/a2
Aug ’25CA$119.71
CA$133.50
+11.5%
3.4%CA$138.00CA$129.00n/a2
Jul ’25CA$105.07
CA$132.00
+25.6%
6.1%CA$140.00CA$124.00n/a2
Jun ’25CA$109.03
CA$132.00
+21.1%
6.1%CA$140.00CA$124.00n/a2
May ’25CA$106.05
CA$120.50
+13.6%
14.5%CA$140.00CA$97.50n/a3
Apr ’25CA$117.16
CA$125.50
+7.1%
4.4%CA$131.00CA$120.00n/a2
Mar ’25CA$110.57
CA$125.50
+13.5%
4.4%CA$131.00CA$120.00n/a2
Feb ’25CA$108.19
CA$135.67
+25.4%
8.2%CA$145.00CA$120.00n/a3
Jan ’25CA$113.36
CA$128.00
+12.9%
9.4%CA$145.00CA$119.00n/a3
Dec ’24CA$101.86
CA$129.00
+26.6%
8.9%CA$145.00CA$119.00n/a3
Nov ’24CA$97.49
CA$129.00
+32.3%
8.9%CA$145.00CA$119.00CA$128.353
Oct ’24CA$98.61
CA$135.67
+37.6%
7.7%CA$145.00CA$121.00CA$132.103
Sep ’24CA$102.45
CA$135.67
+32.4%
7.7%CA$145.00CA$121.00CA$119.253
Aug ’24CA$110.49
CA$135.67
+22.8%
7.7%CA$145.00CA$121.00CA$119.713
Jul ’24CA$113.81
CA$132.00
+16.0%
6.0%CA$145.00CA$125.00CA$105.074
Jun ’24CA$92.97
CA$129.81
+39.6%
6.4%CA$145.00CA$121.06CA$109.035
May ’24CA$98.00
CA$129.81
+32.5%
6.4%CA$145.00CA$121.06CA$106.055
Apr ’24CA$96.40
CA$133.21
+38.2%
6.2%CA$145.00CA$121.06CA$117.165
Mar ’24CA$102.91
CA$133.21
+29.4%
6.2%CA$145.00CA$121.06CA$110.575
Feb ’24CA$117.01
CA$135.61
+15.9%
7.7%CA$150.00CA$121.06CA$108.195
Jan ’24CA$97.77
CA$135.81
+38.9%
9.7%CA$150.00CA$120.00CA$113.365
Dec ’23CA$106.16
CA$139.50
+31.4%
8.8%CA$150.00CA$120.00CA$101.864
Nov ’23CA$103.89
CA$140.75
+35.5%
8.8%CA$150.00CA$120.00CA$97.494

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

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