Published on 23 Oct 2023 on Simply Wall St. via Yahoo Finance
A Look At The Fair Value Of Wesfarmers Limited (ASX:WES)
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Wesfarmers fair value estimate is AU$58.02With AU$51.27 share price, Wesfarmers appears to be trading close to its estimated fair value Analyst price target for WES is AU$51.79 which is 11% below our fair value estimate
How far off is Wesfarmers Limited (ASX:WES) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by projecting its future cash flows and then discounting them to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Don't get put off by the jargon, the math behind it is actually quite straightforward.