WesfarmersWFAFF +5.57%80 Return-on-Tangible-Equity is 90.76% as of Dec. 2025, which is 27% above its 10-year median of 71.53. GuruFocus rates WFAFF with a GF Score™ of 80/100 and a GF Value™ of $48.38 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 1,058 Retail - Cyclical companies, Wesfarmers ranks better than 91.59% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Wesfarmers's annualized net income for the quarter that ended in Dec. 2025 was $2,130 Mil. Wesfarmers's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $2,347 Mil. Therefore, Wesfarmers's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 90.76%.
The historical rank and industry rank for Wesfarmers's Return-on-Tangible-Equity or its related term are showing as below:
WFAFF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 34.64 Med: 71.53 Max: 488.19
Current: 83.52
During the past 13 years, Wesfarmers's highest Return-on-Tangible-Equity was 488.19%. The lowest was 34.64%. And the median was 71.53%.
WFAFF's Return-on-Tangible-Equity is ranked better than 91.59% of 1058
companies
in the Retail - Cyclical industry
Industry Median: 8.4
vs WFAFF: 83.52
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Wesfarmers Return-on-Tangible-Equity Related Terms
Wesfarmers Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Wesfarmers's Return-on-Tangible-Equity 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-Equity Comparison
For the Home Improvement Retail subindustry, Wesfarmers's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Wesfarmers's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Wesfarmers's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 90.76% mean?
Wesfarmers (WFAFF) has a Return-on-Tangible-Equity of 90.76% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Wesfarmers and its competitors. This is 27% above median its historical median of 71.53. Over the past decade, Wesfarmers' Return-on-Tangible-Equity has ranged from 34.64 to 488.19. According to the industry distribution chart, Wesfarmers ranks #89 out of 1058 companies in the Retail - Cyclical industry, placing it in the top 8.4%.
Is Wesfarmers' Return-on-Tangible-Equity too high?
Wesfarmers' current Return-on-Tangible-Equity of 90.76% is 27% above median its 10-year median of 71.53. Over the past 10 years, this metric has ranged from a low of 34.64 to a high of 488.19. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.40. Wesfarmers' value of 90.76% is 980.5% above this industry median. Based on the distribution chart, Wesfarmers ranks #89 out of 1058 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 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Wesfarmers' Return-on-Tangible-Equity compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, Wesfarmers ranks #89 out of 1058 companies for Return-on-Tangible-Equity. This places Wesfarmers in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.40. Wesfarmers' value of 90.76% is 980.5% above this benchmark. Historically, Wesfarmers' own Return-on-Tangible-Equity has ranged from 34.64 to 488.19 over the past decade. While the company's 10-year median is 71.53 vs. the industry median of 8.40, 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-Equity for a Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.40, based on 1,058 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Wesfarmers's current Return-on-Tangible-Equity of 90.76% is 980.5% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Wesfarmers and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wesfarmers's current Return-on-Tangible-Equity is 90.76%, which is 27% above median its own 10-year median of 71.53. 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 $48.38, compared to a current price of $59.12 — trading 22.2% above its estimated fair value. The current Return-on-Tangible-Equity is 90.76%, which is 27% above median its 10-year median of 71.53 and 980.5% above the Retail - Cyclical industry median of 8.40. Wesfarmers' overall GF Score™ is 80/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Wesfarmers (WFAFF), the current Return-on-Tangible-Equity is 90.76% 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 $59.12 is trading 22.2% above its estimated GF Value™ of $48.38.
GuruFocus considers Wesfarmers to be Modestly Overvalued.
Key valuation signals for WFAFF:
Return-on-Tangible-Equity: 90.76% (27% above median its 10-year median of 71.53)
GF Value™: $48.38 vs. price of $59.12 (22.2% above fair value)
Industry Position: 980.5% above the Retail - Cyclical median (#89 of 1058)
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.
80GF Score
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