West Fraser Timber Stock Current Valuation
| WFG Stock | CAD 122.76 1.75 1.45% |
Valuation analysis of West Fraser Timber helps investors to measure West Fraser's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. As of the 6th of February 2025, Enterprise Value Over EBITDA is likely to grow to 18.92. Also, Enterprise Value Multiple is likely to grow to 18.92. Fundamental drivers impacting West Fraser's valuation include:
Fairly Valued
Today
Please note that West Fraser's price fluctuation is very steady at this time. Calculation of the real value of West Fraser Timber is based on 3 months time horizon. Increasing West Fraser's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since West Fraser is currently traded on the exchange, buyers and sellers on that exchange determine the market value of West Stock. However, West Fraser's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 122.76 | Real 125.56 | Hype 121.01 |
The intrinsic value of West Fraser's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence West Fraser's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of West Fraser Timber helps investors to forecast how West stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of West Fraser more accurately as focusing exclusively on West Fraser's fundamentals will not take into account other important factors: West Fraser Timber Company Current Valuation Analysis
West Fraser's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current West Fraser Current Valuation | 9.04 B |
Most of West Fraser's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, West Fraser Timber is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
West Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for West Fraser is extremely important. It helps to project a fair market value of West Stock properly, considering its historical fundamentals such as Current Valuation. Since West Fraser's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of West Fraser's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of West Fraser's interrelated accounts and indicators.
Click cells to compare fundamentals
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, West Fraser Timber has a Current Valuation of 9.04 B. This is 20.81% lower than that of the Paper & Forest Products sector and 59.27% higher than that of the Materials industry. The current valuation for all Canada stocks is 45.65% higher than that of the company.
West Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses West Fraser's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of West Fraser could also be used in its relative valuation, which is a method of valuing West Fraser by comparing valuation metrics of similar companies.West Fraser is currently under evaluation in current valuation category among its peers.
West Fundamentals
| Return On Equity | -0.0131 | ||||
| Return On Asset | 0.0034 | ||||
| Profit Margin | (0.02) % | ||||
| Operating Margin | (0.06) % | ||||
| Current Valuation | 9.04 B | ||||
| Shares Outstanding | 77.96 M | ||||
| Shares Owned By Insiders | 33.84 % | ||||
| Shares Owned By Institutions | 48.13 % | ||||
| Number Of Shares Shorted | 295.73 K | ||||
| Price To Earning | 9.69 X | ||||
| Price To Book | 0.95 X | ||||
| Price To Sales | 1.55 X | ||||
| Revenue | 6.45 B | ||||
| Gross Profit | 1.84 B | ||||
| EBITDA | 612 M | ||||
| Net Income | (167 M) | ||||
| Cash And Equivalents | 456 M | ||||
| Cash Per Share | 12.52 X | ||||
| Total Debt | 538 M | ||||
| Debt To Equity | 0.06 % | ||||
| Current Ratio | 3.36 X | ||||
| Book Value Per Share | 88.70 X | ||||
| Cash Flow From Operations | 525 M | ||||
| Short Ratio | 2.42 X | ||||
| Earnings Per Share | (1.65) X | ||||
| Target Price | 150.26 | ||||
| Number Of Employees | 10.8 K | ||||
| Beta | 2.05 | ||||
| Market Capitalization | 9.71 B | ||||
| Total Asset | 9.41 B | ||||
| Retained Earnings | 4.91 B | ||||
| Working Capital | 1.33 B | ||||
| Annual Yield | 0.02 % | ||||
| Five Year Return | 1.06 % | ||||
| Net Asset | 9.41 B | ||||
| Last Dividend Paid | 1.24 |
About West Fraser Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze West Fraser Timber's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of West Fraser using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of West Fraser Timber based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with West Fraser
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if West Fraser position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in West Fraser will appreciate offsetting losses from the drop in the long position's value.Moving against West Stock
| 0.6 | FDR | Flinders Resources | PairCorr |
| 0.51 | STC | Sangoma Technologies Corp | PairCorr |
| 0.44 | AMZN | Amazon CDR | PairCorr |
| 0.4 | TD-PFD | Toronto Dominion Bank | PairCorr |
| 0.38 | PPL-PA | Pembina Pipeline Corp | PairCorr |
The ability to find closely correlated positions to West Fraser could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace West Fraser when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back West Fraser - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling West Fraser Timber to buy it.
The correlation of West Fraser is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as West Fraser moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if West Fraser Timber moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for West Fraser can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in West Fraser Timber. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.