Wesfarmers Limited

DB:WF3 Stock Report

Market Cap: €54.1b

Wesfarmers Valuation

Is WF3 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 WF3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€33.53
Fair Value
41.6% overvalued intrinsic discount
13
Number of Analysts

Below Fair Value: WF3 (€47.46) is trading above our estimate of fair value (€33.53)

Significantly Below Fair Value: WF3 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WF3?

Key metric: As WF3 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for WF3. This is calculated by dividing WF3's market cap by their current earnings.
What is WF3's PE Ratio?
PE Ratio34.9x
EarningsAU$2.56b
Market CapAU$89.35b

Price to Earnings Ratio vs Peers

How does WF3's PE Ratio compare to its peers?

The above table shows the PE ratio for WF3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average29.5x
JD JD.com
12.5x7.8%US$60.0b
ZAL Zalando
49.4x19.9%€10.1b
CPNG Coupang
44.2x30.6%US$45.6b
NPN Naspers
12x19.8%R763.0b
WF3 Wesfarmers
34.9x8.4%€89.3b

Price-To-Earnings vs Peers: WF3 is expensive based on its Price-To-Earnings Ratio (34.9x) compared to the peer average (29.5x).

Price to Earnings Ratio vs Industry

How does WF3's PE Ratio compare vs other companies in the Global Multiline Retail Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
WF3 34.9xIndustry Avg. 23.0xNo. of Companies22PE01632486480+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WF3 is expensive based on its Price-To-Earnings Ratio (34.9x) compared to the Global Multiline Retail industry average (23.5x).

Price to Earnings Ratio vs Fair Ratio

What is WF3'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.

WF3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio34.9x
Fair PE Ratio19.6x

Price-To-Earnings vs Fair Ratio: WF3 is expensive based on its Price-To-Earnings Ratio (34.9x) compared to the estimated Fair Price-To-Earnings Ratio (19.6x).

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 WF3 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€47.46
€39.95
-15.8%
14.0%€47.55€26.89n/a13
Feb ’26€45.78
€39.19
-14.4%
13.5%€47.02€26.59n/a13
Jan ’26€43.22
€40.02
-7.4%
12.2%€47.56€27.45n/a14
Dec ’25€44.16
€40.02
-9.4%
12.2%€47.56€27.45n/a14
Nov ’25€40.09
€39.13
-2.4%
12.1%€46.64€26.92n/a14
Oct ’25€43.67
€39.98
-8.4%
13.0%€47.97€26.75n/a14
Sep ’25€44.53
€38.88
-12.7%
14.2%€48.57€26.33n/a15
Aug ’25€44.34
€36.60
-17.5%
12.8%€43.47€25.92n/a15
Jul ’25€40.27
€36.05
-10.5%
11.8%€42.02€26.26n/a15
Jun ’25€39.61
€36.05
-9.0%
11.8%€42.02€26.26n/a15
May ’25€40.60
€35.45
-12.7%
11.0%€41.99€26.25n/a15
Apr ’25€41.16
€35.00
-15.0%
10.5%€40.26€26.00n/a15
Mar ’25€39.88
€34.96
-12.3%
10.8%€40.38€26.07n/a15
Feb ’25€35.03
€31.98
-8.7%
10.9%€38.19€25.50€45.7814
Jan ’25€35.15
€31.66
-9.9%
10.3%€35.53€25.93€43.2214
Dec ’24€32.08
€30.77
-4.1%
10.6%€34.53€25.20€44.1614
Nov ’24€30.51
€30.87
+1.2%
10.2%€34.50€25.17€40.0914
Oct ’24€32.25
€31.32
-2.9%
10.4%€36.98€25.40€43.6714
Sep ’24€32.19
€30.50
-5.2%
10.7%€36.33€24.95€44.5315
Aug ’24€30.16
€30.43
+0.9%
11.8%€38.44€24.45€44.3415
Jul ’24€30.03
€30.49
+1.5%
11.3%€38.51€25.72€40.2715
Jun ’24€29.26
€30.33
+3.7%
11.3%€38.28€25.56€39.6115
May ’24€31.06
€30.08
-3.1%
12.2%€38.49€25.22€40.6014
Apr ’24€30.89
€30.73
-0.5%
12.3%€39.53€25.90€41.1615
Mar ’24€30.71
€32.29
+5.2%
12.1%€41.43€27.15€39.8815
Feb ’24€32.22
€31.57
-2.0%
12.8%€41.62€26.62€35.0315
Analyst Price Target
Consensus Narrative from 13 Analysts
€39.87
Fair Value
19.0% overvalued intrinsic discount
13
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/16 02:23
End of Day Share Price 2025/02/14 00:00
Earnings2024/06/30
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Wesfarmers Limited is covered by 29 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Russell WrightAPP Securities Pty Ltd.
Russell WrightBarclay Pearce Capital Pty Limited
Thomas KierathBarrenjoey Markets Pty Limited