WEG S.A.

OTCPK:WEGZ.Y Stock Report

Market Cap: US$32.8b

WEG Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Discounted Cash Flow
Simply Wall St
US$3.53
Fair Value
107.5% overvalued intrinsic discount
13
Number of Analysts

Below Fair Value: WEGZ.Y ($7.33) is trading above our estimate of fair value ($3.53)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WEGZ.Y?

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

The above table shows the Price to Earnings ratio for WEGZ.Y. This is calculated by dividing WEGZ.Y's market cap by their current earnings.
What is WEGZ.Y's PE Ratio?
PE Ratio28.5x
EarningsR$6.26b
Market CapR$186.37b

Price to Earnings Ratio vs Peers

How does WEGZ.Y's PE Ratio compare to its peers?

The above table shows the PE ratio for WEGZ.Y vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average34.2x
VRT Vertiv Holdings Co
54.2x23.1%US$36.2b
AME AMETEK
27.7x7.2%US$39.3b
ROK Rockwell Automation
31.3x11.6%US$28.7b
HUBB Hubbell
23.6x8.2%US$19.0b
WEGZ.Y WEG
28.5x15.5%US$186.4b

Price-To-Earnings vs Peers: WEGZ.Y is good value based on its Price-To-Earnings Ratio (28.5x) compared to the peer average (34.2x).

Price to Earnings Ratio vs Industry

How does WEGZ.Y's PE Ratio compare vs other companies in the US Electrical Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HLGN Heliogen
0.4xn/aUS$12.48m
KRFG OneSolution Technology
1.3xn/aUS$997.62k
No more companies available in this PE range
WEGZ.Y 28.5xIndustry Avg. 22.1xNo. of Companies5PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WEGZ.Y is expensive based on its Price-To-Earnings Ratio (28.5x) compared to the US Electrical industry average (22.4x).

Price to Earnings Ratio vs Fair Ratio

What is WEGZ.Y'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.

WEGZ.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.5x
Fair PE Ratio29.5x

Price-To-Earnings vs Fair Ratio: WEGZ.Y is good value based on its Price-To-Earnings Ratio (28.5x) compared to the estimated Fair Price-To-Earnings Ratio (29.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

AnalystConsensusTarget
Consensus Narrative from 13 Analysts
US$10.25
Fair Value
28.5% undervalued intrinsic discount
13
Number of Analysts

Analyst Forecast: Insufficient data to show price forecast.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/05/05 11:56
End of Day Share Price 2025/05/05 00:00
Earnings2025/03/31
Annual Earnings2024/12/31

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

WEG S.A. is covered by 26 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Luan CalimerioBB Banco de Investimento S.A.
Rogério AraújoBofA Global Research
Andre FerreiraBradesco S.A. Corretora de Títulos e Valores Mobiliários