WesfarmersWFAFF 82 Graham Number is $8.30 as of Dec. 2025, which is 122% above its 10-year median of 3.74. GuruFocus rates WFAFF with a GF Score™ of 82/100 and a GF Value™ of $52.20 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 751 Retail - Cyclical companies, Wesfarmers ranks worse than 96.01% on this metric.
Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.
As of today (2026-07-02), the stock price of Wesfarmers is $60.12. Wesfarmers's graham number for the quarter that ended in Dec. 2025 was $8.30. Therefore, Wesfarmers's Price to Graham Number ratio for today is 7.24.
The historical rank and industry rank for Wesfarmers's Graham Number or its related term are showing as below:
WFAFF'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.71 Med: 3.74 Max: 7.89
Current: 7.35
During the past 13 years, the highest Price to Graham Number ratio of Wesfarmers was 7.89. The lowest was 1.71. And the median was 3.74.
WFAFF's Price-to-Graham-Number is ranked worse than 96.01% of 751
companies
in the Retail - Cyclical industry
Industry Median: 1.23
vs WFAFF: 7.35
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Wesfarmers (OTCPK:WFAFF) Graham Number Explanation
Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:
Current price should not be more than 15 times average earnings of the past three years.
Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)
Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.
In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.
Wesfarmers's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Dec. 2025 )
=
60.12
/
8.30
=
7.24
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Please keep these in mind:
1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.
Wesfarmers Graham Number Related Terms
Wesfarmers Graham Number Historical Data
* Premium members only.
The historical data trend for Wesfarmers's Graham Number can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Home Improvement Retail subindustry, Wesfarmers's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Wesfarmers Price-to-Graham-Number vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Wesfarmers's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Wesfarmers's Price-to-Graham-Number falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Wesfarmers (WFAFF) has a Graham Number of $8.30 as of Dec. 2025. The Graham Number values a company based on its per-share earnings and book value. View historical data on Wesfarmers and its competitors. This is 122% above median its historical median of 3.74. Over the past decade, Wesfarmers' Graham Number has ranged from 1.71 to 7.89. According to the industry distribution chart, Wesfarmers ranks #721 out of 751 companies in the Retail - Cyclical industry, placing it in the top 96%.
Is Wesfarmers' Graham Number too high?
Wesfarmers' current Graham Number of $8.30 is 122% above median its 10-year median of 3.74. Over the past 10 years, this metric has ranged from a low of 1.71 to a high of 7.89. The Retail - Cyclical industry median Graham Number is 1.23. Wesfarmers' value of $8.30 is 574.8% above this industry median. Based on the distribution chart, Wesfarmers ranks #721 out of 751 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Wesfarmers has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Wesfarmers' Graham Number compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, Wesfarmers ranks #721 out of 751 companies for Graham Number. This places Wesfarmers in the lower half of its industry. The industry median Graham Number is 1.23. Wesfarmers' value of $8.30 is 574.8% above this benchmark. Historically, Wesfarmers' own Graham Number has ranged from 1.71 to 7.89 over the past decade. While the company's 10-year median is 3.74 vs. the industry median of 1.23, Wesfarmers has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Graham Number for a Retail - Cyclical company?
The median Graham Number among Retail - Cyclical companies is 1.23, based on 751 companies in the industry. Companies in the top quartile (top 25%) have a Graham Number significantly above this median, while those in the bottom quartile fall well below. However, Graham Number should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Wesfarmers's current Graham Number of $8.30 is 574.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Graham Number mean?
A high Graham Number can signal that a stock is expensive relative to its fundamentals. The Graham Number values a company based on its per-share earnings and book value. View historical data on Wesfarmers and its competitors. For the Retail - Cyclical industry, the median Graham Number is 1.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wesfarmers's current Graham Number is $8.30, which is 122% above median its own 10-year median of 3.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wesfarmers stock overvalued right now?
Based on GuruFocus' analysis, Wesfarmers (WFAFF) is currently considered Modestly Overvalued. The stock's GF Value™ is $52.20, compared to a current price of $60.12 — trading 15.2% above its estimated fair value. The current Graham Number is $8.30, which is 122% above median its 10-year median of 3.74 and 574.8% above the Retail - Cyclical industry median of 1.23. Wesfarmers' overall GF Score™ is 82/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Graham Number calculated?
Graham Number is calculated from a company's financial statements. For Wesfarmers (WFAFF), the current Graham Number is $8.30 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Wesfarmers (WFAFF) Overvalued in 2026?
Based on GuruFocus' analysis, Wesfarmers stock appears to be overvalued.
The current stock price of $60.12 is trading 15.2% above its estimated GF Value™ of $52.20.
GuruFocus considers Wesfarmers to be Modestly Overvalued.
Key valuation signals for WFAFF:
Graham Number: $8.30 (122% above median its 10-year median of 3.74)
GF Value™: $52.20 vs. price of $60.12 (15.2% above fair value)
Industry Position: 574.8% above the Retail - Cyclical median (#721 of 751)
No single metric tells the full story. See the WFAFF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wesfarmers is Australia's largest conglomerate. Its retail operations include the Bunnings hardware chain (number one in market share), discount department stores Kmart and Target (number one and three), and Officeworks in office supplies (number one). These activities account for the vast majority of group earnings before taxes. Other operations include chemicals and fertilizers, lithium mining, industrial and safety supplies, and health. Management is focused on generating cash and creating shareholder wealth in the long term.
82GF Score
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