Wesfarmers Limited

Australia Country flag Australia
Sector: Home Improvement Retailers
Ticker: WES
ISIN: AU000000WES1
Factsheet Factsheet

Market multiple valuation of Wesfarmers Limited ( WES | AUS)

The most common multiple used in the valuation of stocks is the P/Earnings NTM multiple (Price to Earnings). P/E relates the current share price with the market expectations in terms of Earnings Per Share. This multiple is used to compare a company's market value with its earnings. A company with a high P/Earnings NTM is considered to be overvalued; a company with a low P/Earnings NTM is considered to be undervalued.
The P/Earnings NTM ratio of Wesfarmers Limited is significantly higher than the median of its peer group: around 17.00. The company valuation of Wesfarmers Limited according to these metrics is way above the market valuation of its peer group.
The P/Earnings NTM ratio of Wesfarmers Limited is significantly higher than the average of its sector (Home Improvement Retailers): 14.15. The company valuation of Wesfarmers Limited according to these metrics is way above the market valuation of its sector.
The P/Earnings NTM ratio of Wesfarmers Limited is significantly higher than its historical 5-year average: 25.3. The (current) company valuation of Wesfarmers Limited is therefore way above its valuation average over the last five years.

Valuation
P/E Last P/E (e) 2025P/E NTM
Wesfarmers LimitedFree trialFree trialFree trial
International PeersFree trialFree trialFree trial
Home Improvement Retailers12.7314.2914.15
S&P/ASX 20019.5116.3916.20
Australia-1.5912.2712.40
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Beta (Ref: S&P/ASX 200)
Levered betaUnlevered beta
1-Year1.041.01
2-Year1.031.00
3-Year1.020.99
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Stock Perf excl. Dividends (in AUD)
WESS&P/ASX 200Rel. Perf.
Year-to-Date12.2%1.0%11.2%
1-Week0.8%-0.1%1.0%
1-Month14.3%11.8%2.6%
1-Year18.0%6.5%11.4%
3-Year63.6%16.0%47.6%
5-Year114.2%54.2%60.1%
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International Peers - Wesfarmers Limited
Company NameCtryMarket
Cap.
last (mUSD)
Wesfarmers LimitedAUS58 951
International Peers Median0.98
Coles Group Ltd.AUS19 427
WOOLWORTHS GROUP LIMITE...AUS26 266
Kesko OyjFIN-0.00
Kingfisher PlcGBR-0.00
Lowe's Companies Inc.USA128 270
GPRV Analysis
Created with Highcharts 4.1.70/102/104/106/108/1010/10
Wesfarmers Limited
Intl. Peers
U.S Patents No. 7,882,001 & 8,082,201
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Net Sales Chart
Created with Highcharts 4.1.7Millions AUD201920202021202220232024 (e)2025 (e)2026 (e)2027 (e)0k25k50k75k
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Quotes Chart

1-Year Rebased Stock Chart

  • Wesfarmers Limited
  • S&P/ASX 200
Created with Highcharts 4.1.7Jan '25Sep '24May '25-10%0%10%20%
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Did you know ?

On the Infront Analytics platform, there are two ways to identify the listed peers which most closely resemble a private firm:
- with Peer Tracker if you already know a listed peer.
Peer Tracker is a patented technology tool for building peer groups using industry classifications. The degree of similarity between two companies is calculated comparing their sector footprints and measured using comparability scores.
- with Market Screener if you have no listed peer in mind.
Market Screener is a dedicated interface for screening companies using multiple criteria, identifying peers, searching for comparable companies in a specific business sector.

About Market Multiples

Many methods can be used to value a company. In reality, business valuation is often a combination of these different approaches. One of the most widely used quantitative methods is the market multiples method. The market valuation is utilized generally as a primary market input, to provide an objective starting point for the valuation. Put simply, this method multiplies the sales or profits of a business by an industry averaged multiplier to calculate the Market Value of the business.
Current multiples include:
- Historical multiples based on standardized financials for the last completed fiscal period: Last, Last Twelve Months (LTM);
- Forward multiples based on consensus estimates for the current fiscal period and next ones: Next Twelve Months (NTM), FY0, FY1.
Current multiples based on per-share metrics (such as earnings per share or book value per share) are calculated using the last closing price, while current multiples based on company-level metrics (such as net sales, EBIT or EBITDA) are calculated using the current market cap or EV (Enterprise Value).