Wesfarmers (ASX:WES) Risk Assessment

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ASX:WES Wesfarmers Ltd ASX:WES
82 GF Score
Price A$91.25
GF Value A$74.43
Valuation Modestly Overvalued
! 8 Warning Signs
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What is Wesfarmers Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Wesfarmers is: Low Risk: Strong fundamentals, worth long-term holding.

Wesfarmers  (ASX:WES) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Wesfarmers Risk Assessment Related Terms

ASX:WES vs HD, LOW, FND: Risk Assessment Comparison

For the Home Improvement Retail subindustry, Wesfarmers's Risk Assessment, along with its competitors' market caps and Risk Assessment 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 Risk Assessment vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Wesfarmers's Risk Assessment distribution charts can be found below:

* The bar in red indicates where Wesfarmers's Risk Assessment falls into.


ASX:WES
82GF Score
Wesfarmers Ltd ASX:WES
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Is Wesfarmers (ASX:WES) Overvalued in 2026?

Based on GuruFocus' analysis, Wesfarmers stock appears to be overvalued. The current stock price of A$91.25 is trading 22.6% above its estimated GF Value™ of A$74.43. GuruFocus considers Wesfarmers to be Modestly Overvalued.

Key valuation signals for ASX:WES:

  • Risk Assessment:
  • GF Value™: A$74.43 vs. price of A$91.25 (22.6% above fair value)
  • GF Score™: 82/100 with 8 warning signs

No single metric tells the full story. See the ASX:WES stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Wesfarmers Business Description

Address 123 St Georges Terrace, Level 14, Brookfield Place Tower 2, Perth, WA, AUS, 6000
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 ASX:WES

Risk Assessment is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$91.25
Price
A$74.43
GF Value