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Wesfarmers (WES) Strength

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Question asked 24/05/2025

Wesfarmers (WES) Strength

Hello MM Is there a simple explanation for the rising price in Wesfarmers' share price? Is there more to come or have they hit the ceiling? Thanks again for your excellent commentary and service. Regards, Rob

Answer

Hi Rob,

Wesfarmers is part of the “certainty” trade as MM have recently labelled it. The chart below illustrates WES trading at its highest valuation in over 5-years, just like CBA and JBH. The valuation & performance elastic band is certainly stretched but we wouldn’t fade them as a group just yet, let the tape tell you when, but the time is nigh as we discussed in this weeks webinar. We view WES as very expensive here and now.

chart

Wesfarmers (WES) Valuation over last 5-years – source Bloomberg

LAST UPDATED 22/05/2025 17:11

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