WesfarmersWFAFF 82 Return-on-Tangible-Asset is 13.80% as of Dec. 2025, which is 25% above its 10-year median of 11.07. 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 1,129 Retail - Cyclical companies, Wesfarmers ranks better than 88.22% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Wesfarmers's annualizedNet Income for the quarter that ended in Dec. 2025 was $2,130 Mil. Wesfarmers's average total tangible assets for the quarter that ended in Dec. 2025 was $15,438 Mil. Therefore, Wesfarmers's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 13.80%.
The historical rank and industry rank for Wesfarmers's Return-on-Tangible-Asset or its related term are showing as below:
WFAFF'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.6 Med: 11.07 Max: 29.27
Current: 13.21
During the past 13 years, Wesfarmers's highest Return-on-Tangible-Asset was 29.27%. The lowest was 1.60%. And the median was 11.07%.
WFAFF's Return-on-Tangible-Asset is ranked better than 88.22% of 1129
companies
in the Retail - Cyclical industry
Industry Median: 2.93
vs WFAFF: 13.21
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Wesfarmers Return-on-Tangible-Asset Related Terms
Wesfarmers Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Wesfarmers's Return-on-Tangible-Asset 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.
WFAFF vs HD, LOW, FND: Return-on-Tangible-Asset Comparison
For the Home Improvement Retail subindustry, Wesfarmers's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Wesfarmers's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Wesfarmers's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
What does a Return-on-Tangible-Asset of 13.80% mean?
Wesfarmers (WFAFF) has a Return-on-Tangible-Asset of 13.80% as of Dec. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Wesfarmers and its competitors. This is 25% above median its historical median of 11.07. Over the past decade, Wesfarmers' Return-on-Tangible-Asset has ranged from 1.60 to 29.27. According to the industry distribution chart, Wesfarmers ranks #133 out of 1129 companies in the Retail - Cyclical industry, placing it in the top 11.8%.
Is Wesfarmers' Return-on-Tangible-Asset too high?
Wesfarmers' current Return-on-Tangible-Asset of 13.80% is 25% above median its 10-year median of 11.07. Over the past 10 years, this metric has ranged from a low of 1.60 to a high of 29.27. The Retail - Cyclical industry median Return-on-Tangible-Asset is 2.93. Wesfarmers' value of 13.80% is 371% above this industry median. Based on the distribution chart, Wesfarmers ranks #133 out of 1129 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position 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' Return-on-Tangible-Asset compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, Wesfarmers ranks #133 out of 1129 companies for Return-on-Tangible-Asset. This places Wesfarmers in the top 12% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.93. Wesfarmers' value of 13.80% is 371% above this benchmark. Historically, Wesfarmers' own Return-on-Tangible-Asset has ranged from 1.60 to 29.27 over the past decade. While the company's 10-year median is 11.07 vs. the industry median of 2.93, 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 Return-on-Tangible-Asset for a Retail - Cyclical company?
The median Return-on-Tangible-Asset among Retail - Cyclical companies is 2.93, based on 1,129 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Wesfarmers's current Return-on-Tangible-Asset of 13.80% is 371% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Wesfarmers and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Asset is 2.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wesfarmers's current Return-on-Tangible-Asset is 13.80%, which is 25% above median its own 10-year median of 11.07. 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 Return-on-Tangible-Asset is 13.80%, which is 25% above median its 10-year median of 11.07 and 371% above the Retail - Cyclical industry median of 2.93. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Wesfarmers (WFAFF), the current Return-on-Tangible-Asset is 13.80% 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:
Return-on-Tangible-Asset: 13.80% (25% above median its 10-year median of 11.07)
GF Value™: $52.20 vs. price of $60.12 (15.2% above fair value)
Industry Position: 371% above the Retail - Cyclical median (#133 of 1129)
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
Get the complete analysis for WFAFF
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
WFAFF has been successfully added to your 
