The evidence suggests that WES sector is in a bear market.
The retail sector reasonable Pe rations are around 14 to 18.
The only reason WES has a Pe of 30 is due to the low return for cash in the bank which is .5%. Investors are chasing yield and in doing so are driving share prices to ridiculous levels.
The director of WES expected that 15% of profit was driven by panic buying. If this is correct you can reduce the share price by 15% without any other factors. If the there is a market correction you can reduce the share price by 30% based on a reduction of PE back to reasonable values.
49.85 minus 15% $42.37 minus 30% $29.66
If there is recession prices could fall to $25 to $27
March 26 2020 it was $32
Since march 2021 WES has lost 12% of its value.
returning to PE of 18 to $ 29.66
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Last
$72.36 |
Change
-0.240(0.33%) |
Mkt cap ! $81.61B | |||
| Open | High | Low | Value | Volume |
| $71.70 | $72.53 | $71.00 | $73.41M | 1.023M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 55 | $72.35 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $72.38 | 412 | 9 |
View Market Depth
| Last trade - 15.32pm 02/09/2024 (20 minute delay) ? |
| WES (ASX) Chart |