West Fraser Timber Co Ltd
TSX:WFG
Intrinsic Value
The intrinsic value of one
WFG
stock under the Base Case scenario is
89.9
CAD.
Compared to the current market price of 100.62 CAD,
West Fraser Timber Co Ltd
is
Overvalued by 11%.
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Fundamental Analysis
A prolonged downturn in North American housing starts could sharply reduce demand for West Fraser’s key construction-oriented products, jeopardizing overall revenue and forcing mill curtailments.
The company’s high exposure to regional timber supply constraints—especially wildfire risks in Western Canada—may lead to rising log costs and reduced production efficiency, damaging margins.
Current geopolitical uncertainties around export duties and tariffs threaten West Fraser’s U.S. market access, potentially eroding pricing power and profitability in cross-border sales.
West Fraser’s diversified product mix—including lumber, OSB, pulp, and EWP—mitigates commodity risk and positions the firm to capture upside as regional housing markets recover.
Large-scale production capacity, supported by modernized mills, enables the company to benefit substantially from any increase in North American housing construction and repair-and-remodel activity.
A relatively strong balance sheet gives West Fraser financial flexibility to fund strategic acquisitions and mill upgrades, strengthening its competitiveness and potential for long-term market share gains.
Revenue & Expenses Breakdown
West Fraser Timber Co Ltd
Earnings Waterfall
West Fraser Timber Co Ltd
Wall St
Price Targets
WFG Price Targets Summary
West Fraser Timber Co Ltd
According to Wall Street analysts, the average 1-year price target for
WFG
is 89.21 CAD
with a low forecast of 69.99 CAD and a high forecast of 102.9 CAD.
The intrinsic value of one
WFG
stock under the Base Case scenario is
89.9
CAD.
Compared to the current market price of 100.62 CAD,
West Fraser Timber Co Ltd
is
Overvalued by 11%.