Wesfarmers Ltd
ASX:WES
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Wesfarmers Ltd
ASX:WES
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AU |
Intrinsic Value
The intrinsic value of Wesfarmers Ltd (WES) under the Base Case is 55.53 AUD per share.
Compared with the current market price of 77.93 AUD, the stock appears
Overvalued by 29% .
The intrinsic value is the average of valuations using the DCF method and multiples.
Do our valuations actually work? See backtest results .
Cheap or expensive for this stock?
This block shows whether today’s valuation is cheap or expensive compared with the stock’s own history, and what happened after similar valuations in the past.
We compare the gap between the stock’s price and our estimated value over time.
- Undervalued can still be historically expensive. The stock may trade below our estimated value, but usually offer an even bigger discount.
- Overvalued can still be historically cheap. The stock may trade above our estimated value, but usually carry an even higher premium.
Market expectations can differ from our model, which may not fully capture everything affecting the price. That is why some stocks regularly trade above our estimated value and others below it.
The scale and chart show how today’s valuation compares with the past. The cards summarize past returns and waiting times until the stock stopped being cheap or expensive. This can happen because the price changed, our estimated value changed, or both.
Only completed periods are included. These are past results, not forecasts. The usual historical range does not necessarily mean fair value.
Fundamental Analysis
What Wesfarmers Does
Wesfarmers is an Australian holding company that owns a mix of retail and industrial businesses. Its best-known names include Bunnings, which sells home improvement and building supplies, and retail chains such as Kmart, Target, and Officeworks. It also owns businesses that make and sell chemicals, fertilizer, industrial products, and safety equipment.
- Headquarters
- Australia AU
- Employees
- 120 000
- IPO date
- Nov 15, 1984
Wesfarmers has no economic moat
Shoppers can generally take their next purchase elsewhere without losing money, data or training, leaving Wesfarmers’ retailers exposed to competing offers. Bunnings and Kmart attract customers through low prices and convenience rather than a lasting ability to charge more for similar goods.
Read the full moat analysis
Earnings Waterfall
Wesfarmers Ltd
The intrinsic value for Wesfarmers Ltd (WES) under the Base Case is 55.53 AUD.
Compared with the current market price of 77.93 AUD, the stock appears Overvalued by 29% .