Woolworths Group (WOW.AX)
Consumer · ASX · Australia
Fundamentals
Valuation and ratings
Woolworths Group trades at A$39.27, which is 59% above the A$16.06 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 31 out of 100, which is little in the way of a moat. 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 82.0 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 Woolworths Group
Woolworths Group Limited operates retail stores in Australia and New Zealand. The company operates through Australian Food, Australian B2B, New Zealand Food, W Living, and Other segments. The Australian Food segment procures and resells food and related products; and provides services to customers in Australia. The Australian B2B segment engages in procurement and distribution of food and related products for resale to other businesses, as well as provision of supply chain services to business customers in Australia. The New Zealand Food segment is involved in the procurement of food, drinks, household essentials and related products; and provides services to retail customers in New Zealand. W Living segment procures general merchandise products to customers in Australia. The Other segment operates Quantium retail store. The company was formerly known as Woolworths Limited and changed its name to Woolworths Group Limited in December 2017. Woolworths Group Limited was incorporated in 1924 and is based in Bella Vista, Australia.
WOW.AX passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Woolworths Group (WOW.AX) undervalued?
Against our discounted cash flow estimate of A$16.06, WOW.AX at A$39.27 is 59% 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 WOW.AX's P/E ratio?
WOW.AX trades at 82.0 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.