WEG SA (WEGE3.SA)
Industrials · B3 · Brazil
Fundamentals
Valuation and ratings
WEG SA trades at R$43.49, which is 57% above the R$18.60 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 67 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 31.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About WEG SA
WEG S.A. produces and sells capital goods in Brazil and internationally. The company offers electric motors, generators, and transformers; reducers and gearmotors; hydraulic and steam turbines; frequency converters, starters engines and switching devices; control and protection of electrical circuits for industrial automation; sockets and switches; and solutions for electric traction of heavy vehicles, utility and locomotives, and electric propulsion of naval transport. It also provides solutions for generating renewable and distributed energy, in small hydroelectric plants, biomass, wind and solar; solutions for industry; UPSs and alternators for generator sets; substations electrical, conventional and mobile; industrial electronic systems; industrial paints, varnishes, and paints for automotive repainting. WEG S.A. was founded in 1961 and is headquartered in Jaraguá do Sul, Brazil.
WEGE3.SA passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is WEG SA (WEGE3.SA) undervalued?
Against our discounted cash flow estimate of R$18.60, WEGE3.SA at R$43.49 is 57% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is WEGE3.SA's P/E ratio?
WEGE3.SA trades at 31.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.