WES is up because interest rates are low, Its not about Wes being a good company, rather the return on investment being low because the market has overheated.
Today
Wes $53.70 dividend 3.31% P/E ratio 25.54 over valued by 57%
A realistic pe 11 or 9% long term.
2009 $11
2011 $23
2014 $29
2020 $45 to $32
2022 over $50
As interest rates fell from the GFC Wes price increased because its diversified and an alternative investment than cash in the bank.
The whole asx is over valued by about 45 to 57% not just WES
A pe of 11 divided by 25.5 results in a proportional share price difference and shows the overvaluation.
A pe of 11 would result in WES being 43.1% of today's price. $23.14
I am being conservative placing a valuation at $30.
If Australia doesnt raise rates the aud will fall by 10 to 15%, far better to invest in US dollar and riding out the crash. If you are really smart, you could invest in Turkish banks and make 12.5%, short the lira to protect your investment. win win.
What does the mean? Dare I say. Time to convert your super funds to cash...... ouch.
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$30 price fair value with reasons, page-14
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Last
$71.00 |
Change
-0.440(0.62%) |
Mkt cap ! $80.52B | |||
| Open | High | Low | Value | Volume |
| $71.29 | $72.03 | $70.67 | $61.93M | 869.4K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 3945 | $71.00 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $71.17 | 38 | 1 |
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| Last trade - 16.10pm 09/08/2024 (20 minute delay) ? |
| WES (ASX) Chart |