Wesfarmers Ltd · Valuation
ASX: WES · Consumer Cyclical · Home Improvement Retail
Fair value estimates vs price
A$ per share · models updated 26 Jul 2026
45.1% above fair value A$60.12, the median of our 3 model estimates.
Different models answer different questions. A wide spread between them usually means the market is pricing growth or risk that historical figures don't capture. Estimates are recomputed as new results and prices land.
Discounted cash flow
A$22.85Projects the company's free cash flow forward and discounts it back to today, the most fundamental measure of what a business is worth.
EPS growth model
A$60.12Projects earnings per share forward at the historical growth rate, then discounts back to a present value.
P/E multiple
A$64.32Applies the historical median price-to-earnings ratio to current earnings per share.
Trailing P/E history
Monthly price ÷ trailing diluted EPS · extremes above 100 excluded from stats
Per-share fundamentals
The inputs behind the models
| FY | EPS | Book value / sh | Free cash flow |
|---|---|---|---|
| 2025 | $2.58 | $8.10 | $3.4B |
| 2024 | $2.26 | $7.58 | $3.5B |
| 2023 | $2.18 | $7.31 | $2.9B |
| 2022 | $2.08 | $7.04 | $1.2B |
| 2021 | $2.10 | $8.58 | $2.5B |
| 2020 | $1.50 | $8.25 | $3.7B |
| 2019 | $1.71 | $8.81 | $1.4B |
| 2018 | $1.06 | $20.08 | $2.5B |
| 2017 | $2.44 | $21.19 | $2.7B |
| 2016 | $0.36 | $20.40 | $1.6B |
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What do valuation models estimate Wesfarmers (WES) shares are worth?
As of 5 July 2026, three valuation approaches applied to Wesfarmers each estimate a fair value below the $88.25 close recorded on 3 July 2026. The DCF model estimates $22.85 per share, a P/E-ratio based model estimates $63.78, and an EPS-growth based model estimates $59.61. These are model outputs rather than guaranteed values, and the wide gap between the DCF estimate and the two multiple-based estimates points to differing assumptions built into each approach.
The current P/E ratio of 34.21 is notably higher than the company's own five-year median P/E of 24.72, meaning shares are priced at a richer earnings multiple than has typically applied historically. Diluted EPS has grown from $0.36 in FY2016 to $2.58 in FY2025, though the path was uneven, including a dip to $1.06 in FY2018 and $1.50 in FY2020 before recovering.
For these estimates to be meaningful, the P/E-ratio and EPS-growth models depend on the company's earnings multiple and per-share earnings growth continuing in line with their historical pattern, while the DCF estimate depends on its own underlying cash flow and discount rate assumptions, none of which are disclosed in the company's reported figures here. Because the three models diverge so widely from one another and from the current $88.25 price, they are best read as a range of possible reference points rather than a single answer.
AI-assisted analysis generated from Craytheon's verified financial data · Updated 4 Jul 2026 · How this works
Data is general information only, not financial advice. Figures are as reported in company filings (some ASX companies report in USD); share prices are AUD.