Wesfarmers: Just not worth it

Amelia Bott

StocksInValue

Wesfarmers: Just not worth it. Wesfarmers' shares are currently popular but also overvalued, with a theoretical forward return to end-FY16 of -17%. The problem for shareholders remains the 2007 acquisition of Coles and subsequent equity raisings, which heavily diluted return on equity and equity per share. From here the shares could trade sideways until intrinsic value catches up to price, or the market could mark the stock lower once earnings disappoint expectations. To read the full article published in Eureka Report go to (VIEW LINK)


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Amelia Bott
Equities Analyst
StocksInValue

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