Wesfarmers Limited (WES.AX)

DCF Valuation · Consumer Cyclical · Home Improvement Retail

Valuation as at 2026-08-04 · refreshed with the ASX 300 Most Undervalued screen

About Wesfarmers Limited

Wesfarmers Limited engages in the retail business in Australia, New Zealand, and internationally. The company sells outdoor living and building materials, as well as home, garden, and lifestyle improvement products; apparel and general merchandise, including toys and consumables, as well as leisure, entertainment, and soft home products; and office products and solutions, such as stationery, technology, furniture, art supplies, and learning and development resources, as well as print and create, and technical support services through its Officeworks stores. It also provides hardware and software repairs, system security solutions, wireless and wired networking services, virus and spyware prevention and removal, and data backup and recovery solutions.

Source: Yahoo Finance company profile · factual description, not KashVector commentary

Wesfarmers Limited WES.AX

Consumer Cyclical · Home Improvement Retail

Price
$90.99
Market Cap
$103.30B
Free Cash Flow
$3.29B
Beta
0.82
P/E (TTM)
33.7x
52-Week Range
$70.80–$95.18

WES.AX's price & financial trends

Annual reporting periods — this market does not have reliable quarterly data on Yahoo (either it isn’t required, or coverage is incomplete), so annual is the most granular consistent series across free cash flow and dividends.

Data refreshed 2026-08-04

Share price · last 2 years

$90.99 +25% vs first period
ASX 200 $72.60$76.60$84.75$81.99$72.92$90.99 2024-082025-012025-062025-112026-042026-08

Earnings per share (diluted)

$2.58 +24% vs first period
$2.08$2.18$2.26$2.58FY22FY23FY24FY25

Free cash flow

$3.42B +196% vs first period
$1.16B$2.89B$3.52B$3.42BFY22FY23FY24FY25

Dividend per share

$2.02 +19% vs first period
$1.70$1.88$1.94$2.02FY22FY23FY24FY25

Intrinsic value estimate · 5-year forecast

BEAR
$29.75
vs current $90.99
-67.3% ❌ Overvalued
BASE
$42.48
vs current $90.99
-53.3% ❌ Overvalued
BULL
$61.00
vs current $90.99
-33.0% ❌ Overvalued

Assumptions used in this valuation

Every input below is either fetched live from Yahoo Finance or a documented default — nothing is hidden.

Risk-free rate
4.80% ● LIVE
Live 10-yr govt bond
Beta
0.82
Floored for non-US stocks
Equity risk premium
6.00%
Market-specific seed
Cost of debt
5.00%
Estimated (no debt/interest data)
Tax rate
25.00%
Estimated default
Capital structure
E 89% / D 11%
Market cap vs total debt
Projection horizon
5 years
+ terminal value beyond
BearBaseBull
5-yr FCF growth3.1%6.2%9.3%
Terminal growth2.5%2.5%2.5%
WACC (discount rate)10.06%9.06%8.06%

Cost of Equity = Risk-free rate + Beta × Equity Risk Premium = 4.80% + 0.82 × 6.00% = 9.71% · WACC = weighted by 89%/11% capital structure

These numbers come from running Wesfarmers Limited's cash flows through the mechanical DCF formula and assumptions above — not from any view on the news, management, or WES.AX's competitive position. What is DCF?

Want to test your own growth or discount-rate assumptions?Open the full interactive calculator, pre-filled with WES.AX →

More ASX 300 Most Undervalued stocks

Not financial advice. DCF valuations are highly sensitive to assumptions — small changes in growth rate or discount rate produce large swings in output. This is a mechanical calculation, not a recommendation to buy, hold, or sell.

About this valuation

Refreshed on the same cycle as the ASX 300 Most Undervalued screen. Change any assumption yourself in the full interactive tool.

Frequently asked questions

Is WES.AX undervalued?

The Base-case DCF estimates intrinsic value at $42.48 vs a current price of $90.99 — a -53.3% margin, so the Base case reads overvalued. This is a mechanical output, not advice.