Wesfarmers Ltd
ASX:WES

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Wesfarmers Ltd
ASX:WES
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Price: 75.74 AUD -0.04% Market Closed
Market Cap: 85.9B AUD
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Intrinsic Value

The intrinsic value of one WES stock under the Base Case scenario is 56.32 AUD. Compared to the current market price of 75.74 AUD, Wesfarmers Ltd is Overvalued by 26%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

WES Intrinsic Value
56.32 AUD
Overvaluation 26%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation History
Wesfarmers Ltd

Intrinsic Value History
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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

Backtest Example
WES
Valuation History
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Valuation History Unavailable

Historical valuation for WES cannot be conducted due to limitations such as insufficient data or other constraints.

Valuation In Progress...
Valuation In Progress...

Fundamental Analysis

Company Overview
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Business Segments
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Economic Moat
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Earnings Call
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Management
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Contacts
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Bear Theses

Wesfarmers relies heavily on Bunnings for a substantial share of earnings, making it vulnerable to downturns in the Australian housing market and declining consumer DIY spending.

Increasing online competition and changing consumer preferences could squeeze margins at discount department stores Kmart and Target, undermining Wesfarmers’ broader retail strategy.

Volatility in commodity prices could impair the performance of Wesfarmers’ chemicals, energy, and fertilisers division, diminishing the stability of the overall conglomerate.

Bull Theses

Bunnings’ entrenched brand loyalty and dominant market position should continue driving robust earnings growth, even against cyclical headwinds in housing.

Wesfarmers’ disciplined management, demonstrated by successful transformations of Kmart and other segments, positions the group well to optimize underperforming assets and unlock new growth avenues.

A strong balance sheet and consistent free cash flow generation enable Wesfarmers to pursue strategic acquisitions and capital returns, maintaining shareholder value while broadening the company’s portfolio.

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Wesfarmers Ltd

Current Assets 9.6B
Cash & Short-Term Investments 487m
Receivables 2.1B
Other Current Assets 7B
Non-Current Assets 18.1B
Long-Term Investments 966m
PP&E 11.3B
Intangibles 5.1B
Other Non-Current Assets 717m
Current Liabilities 8.6B
Accounts Payable 6B
Other Current Liabilities 2.7B
Non-Current Liabilities 10.1B
Long-Term Debt 9.7B
Other Non-Current Liabilities 428m
Efficiency

Free Cash Flow Analysis
Wesfarmers Ltd

Last Value
3-Years Average
FCF Margin
Conversion Rate

Earnings Waterfall
Wesfarmers Ltd

Revenue
45B AUD
Cost of Revenue
-29.4B AUD
Gross Profit
15.6B AUD
Operating Expenses
-11.5B AUD
Operating Income
4.1B AUD
Other Expenses
-1.5B AUD
Net Income
2.6B AUD
Fundamental Scores

WES Profitability Score
Profitability Due Diligence

Wesfarmers Ltd's profitability score is 59/100. The higher the profitability score, the more profitable the company is.

Exceptional 3-Year Average ROE
Positive Gross Profit
Exceptional ROE
Positive Free Cash Flow
59/100
Profitability
Score

Wesfarmers Ltd's profitability score is 59/100. The higher the profitability score, the more profitable the company is.

WES Solvency Score
Solvency Due Diligence

Wesfarmers Ltd's solvency score is 41/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
Long-Term Solvency
Short-Term Solvency
Average D/E
41/100
Solvency
Score

Wesfarmers Ltd's solvency score is 41/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

WES Price Targets Summary
Wesfarmers Ltd

Wall Street analysts forecast WES stock price to drop over the next 12 months.

According to Wall Street analysts, the average 1-year price target for WES is 72.75 AUD with a low forecast of 61.61 AUD and a high forecast of 89.25 AUD.

Lowest
Price Target
61.61 AUD
19% Downside
Average
Price Target
72.75 AUD
4% Downside
Highest
Price Target
89.25 AUD
18% Upside
View Analyst Estimates
View Analyst Estimates

Dividends

Dividend Yield
Lowest
Average
Highest
Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
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Unsafe
Unsafe
Safe
Very
Safe
0
25
50
75
100
Shareholder Yield

Current shareholder yield for WES is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
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Average
Highest
Buyback Yield
Lowest
Average
Highest
Debt Paydown Yield
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Highest

Ownership

WES Insider Trading
Buy and sell transactions by insiders

WES News

Other Videos
What is the Intrinsic Value of one WES stock?

The intrinsic value of one WES stock under the Base Case scenario is 56.32 AUD.

Is WES stock undervalued or overvalued?

Compared to the current market price of 75.74 AUD, Wesfarmers Ltd is Overvalued by 26%.

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