WES Relative Valuation - Wesfarmers Ltd - Alpha Spread

Wesfarmers Ltd
ASX:WES

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Wesfarmers Ltd
ASX:WES
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Price: 70.1 AUD -0.4% Market Closed
Market Cap: 79.5B AUD
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Relative Value

The Relative Value of one WES stock under the Base Case scenario is 72.2 AUD. Compared to the current market price of 70.1 AUD, Wesfarmers Ltd is Undervalued by 3%.

Relative Value is the estimated value of a stock based on various valuation multiples like P/E and EV/EBIT ratios. It offers a quick snapshot of a stock's valuation in relation to its peers and historical norms.

WES Relative Value
Base Case
72.2 AUD
Undervaluation 3%
Relative Value
Price
Worst Case
Base Case
Best Case

Valuation Multiples

vs History
6
vs Industry
15
Median 3Y
1.5
Median 5Y
1.5
Industry
0.5
Forward
1.7
vs History
3
vs Industry
13
Median 3Y
24.3
Median 5Y
24.5
Industry
16.4
Forward
28.2
vs History
39
vs Industry
16
Median 3Y
18.2
Median 5Y
14.8
Industry
7.7
vs History
39
vs Industry
14
Median 3Y
26.8
Median 5Y
26.2
Industry
15.4
vs History
3
vs Industry
4
Median 3Y
7
Median 5Y
6.4
Industry
1.6
vs History
4
vs Industry
14
Median 3Y
1.7
Median 5Y
1.7
Industry
0.7
Forward
1.9
vs History
3
vs Industry
15
Median 3Y
4.8
Median 5Y
4.7
Industry
2.2
vs History
3
vs Industry
10
Median 3Y
18.2
Median 5Y
17.9
Industry
8.4
Forward
14.3
vs History
3
vs Industry
16
Median 3Y
18.2
Median 5Y
17.9
Industry
12.8
Forward
20.3
vs History
36
vs Industry
16
Median 3Y
20
Median 5Y
17
Industry
8.8
vs History
49
vs Industry
18
Median 3Y
26.7
Median 5Y
25.3
Industry
12.1
vs History
3
vs Industry
8
Median 3Y
3.3
Median 5Y
3.2
Industry
1

Multiples Across Competitors

WES Competitors Multiples
Wesfarmers Ltd Competitors

All Multiples
P/S
P/E
EV/EBITDA
EV/EBIT
All Countries
Close
Market Cap P/S P/E EV/EBITDA EV/EBIT
AU
Wesfarmers Ltd
ASX:WES
79.5B AUD 1.8 31.1 22.3 22.3
US
Target Corp
NYSE:TGT
69.9B USD 0.7 15.6 8.8 12.9
CA
Dollarama Inc
TSX:DOL
37.1B CAD 6.2 35.4 22.5 28.2
US
Dollar General Corp
NYSE:DG
18.6B USD 0.5 13.2 7.8 11.2
JP
Pan Pacific International Holdings Corp
TSE:7532
2.3T JPY 1.1 25.7 13.7 18.2
US
Dollar Tree Inc
NASDAQ:DLTR
15B USD 0.5 -14.1 -397.5 -17.7
CA
Canadian Tire Corporation Ltd
TSX:CTC.A
8.8B CAD 0.5 23.1 7.4 11.9
US
Ollie's Bargain Outlet Holdings Inc
NASDAQ:OLLI
6B USD 2.7 29.5 19.5 22.3
LU
B&M European Value Retail SA
LSE:BME
4.3B GBP 0.8 11.7 7.1 10.1
CN
MINISO Group Holding Ltd
HKEX:9896
38.1B HKD 2.3 14.3 9.6 9.6
JP
Ryohin Keikaku Co Ltd
TSE:7453
671.8B JPY 1 18.2 7.8 11.9

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