WFG PE Ratio & Valuation,Is WFG Overvalued

WFG Relative Valuation

WFG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, WFG is overvalued; if below, it's undervalued.

Historical Valuation

West Fraser Timber Co Ltd (WFG) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.87 is considered Undervalued compared with the five-year average of 64.62. The fair price of West Fraser Timber Co Ltd (WFG) is between 65.01 to 79.62 according to relative valuation methord. Compared to the current price of 59.81 USD , West Fraser Timber Co Ltd is Undervalued By 8%.

Relative Value

Fair Zone

65.01-79.62

Current Price：59.81

Undervalued

89.86

24.45

EV/EBITDA

West Fraser Timber Co Ltd. (WFG) has a current EV/EBITDA of 24.45. The 5-year average EV/EBITDA is 6.54. The thresholds are as follows: Strongly Undervalued below -2.66, Undervalued between -2.66 and 1.94, Fairly Valued between 11.14 and 1.94, Overvalued between 11.14 and 15.74, and Strongly Overvalued above 15.74. The current Forward EV/EBITDA of 24.45 falls within the Strongly Overvalued range.

76.17

EV/EBIT

West Fraser Timber Co Ltd. (WFG) has a current EV/EBIT of 76.17. The 5-year average EV/EBIT is 19.74. The thresholds are as follows: Strongly Undervalued below -29.70, Undervalued between -29.70 and -4.98, Fairly Valued between 44.46 and -4.98, Overvalued between 44.46 and 69.18, and Strongly Overvalued above 69.18. The current Forward EV/EBIT of 76.17 falls within the Strongly Overvalued range.

0.87

West Fraser Timber Co Ltd. (WFG) has a current PS of 0.87. The 5-year average PS is 0.97. The thresholds are as follows: Strongly Undervalued below 0.71, Undervalued between 0.71 and 0.84, Fairly Valued between 1.11 and 0.84, Overvalued between 1.11 and 1.24, and Strongly Overvalued above 1.24. The current Forward PS of 0.87 falls within the Historic Trend Line -Fairly Valued range.

22.13

P/OCF

West Fraser Timber Co Ltd. (WFG) has a current P/OCF of 22.13. The 5-year average P/OCF is 7.15. The thresholds are as follows: Strongly Undervalued below -0.49, Undervalued between -0.49 and 3.33, Fairly Valued between 10.97 and 3.33, Overvalued between 10.97 and 14.79, and Strongly Overvalued above 14.79. The current Forward P/OCF of 22.13 falls within the Strongly Overvalued range.

-18.20

P/FCF

West Fraser Timber Co Ltd. (WFG) has a current P/FCF of -18.20. The 5-year average P/FCF is 18.12. The thresholds are as follows: Strongly Undervalued below -19.48, Undervalued between -19.48 and -0.68, Fairly Valued between 36.92 and -0.68, Overvalued between 36.92 and 55.72, and Strongly Overvalued above 55.72. The current Forward P/FCF of -18.20 falls within the Undervalued range.

West Fraser Timber Co Ltd (WFG) has a current Price-to-Book (P/B) ratio of 0.71. Compared to its 3-year average P/B ratio of 0.88 , the current P/B ratio is approximately -19.38% higher. Relative to its 5-year average P/B ratio of 1.10, the current P/B ratio is about -35.16% higher. West Fraser Timber Co Ltd (WFG) has a Forward Free Cash Flow (FCF) yield of approximately 0.25%. Compared to its 3-year average FCF yield of 5.55%, the current FCF yield is approximately -95.42% lower. Relative to its 5-year average FCF yield of 14.01% , the current FCF yield is about -98.18% lower.

0.71

P/B

Median3y

0.88

Median5y

1.10

0.25

FCF Yield

Median3y

5.55

Median5y

14.01

Competitors Valuation Multiple

The average P/S ratio for WFG's competitors is 1.19, providing a benchmark for relative valuation. West Fraser Timber Co Ltd Corp (WFG) exhibits a P/S ratio of 0.87, which is -26.72% above the industry average. Given its robust revenue growth of -9.05%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of WFG decreased by 30.57% over the past 1 year. The primary factor behind the change was an decrease in Margin Expansion from -5.78 to -15.53.

The secondary factor is the Revenue Growth, contributed -9.05%to the performance.

Overall, the performance of WFG in the past 1 year is driven by Margin Expansion. Which is more sustainable.

-9.05%

1.44B → 1.31B

Revenue Growth

168.69%

-5.78 → -15.53

Margin Expansion

-190.21%

20.08 → -18.11

P/E Change

-30.57%

86.55 → 60.09

Mkt Cap Growth

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Frequently Asked Questions

Is West Fraser Timber Co Ltd (WFG) currently overvalued or undervalued?

What is West Fraser Timber Co Ltd (WFG) fair value?

WFG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of West Fraser Timber Co Ltd (WFG) is between 65.01 to 79.62 according to relative valuation methord.

How does WFG's valuation metrics compare to the industry average?

What is the current P/B ratio for West Fraser Timber Co Ltd (WFG) as of Dec 15 2025?

As of Dec 15 2025, West Fraser Timber Co Ltd (WFG) has a P/B ratio of 0.71. This indicates that the market values WFG at 0.71 times its book value.

What is the current FCF Yield for West Fraser Timber Co Ltd (WFG) as of Dec 15 2025?

As of Dec 15 2025, West Fraser Timber Co Ltd (WFG) has a FCF Yield of 0.25%. This means that for every dollar of West Fraser Timber Co Ltd’s market capitalization, the company generates 0.25 cents in free cash flow.

What is the current Forward P/E ratio for West Fraser Timber Co Ltd (WFG) as of Dec 15 2025?

As of Dec 15 2025, West Fraser Timber Co Ltd (WFG) has a Forward P/E ratio of 89.86. This means the market is willing to pay $89.86 for every dollar of West Fraser Timber Co Ltd’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for West Fraser Timber Co Ltd (WFG) as of Dec 15 2025?

As of Dec 15 2025, West Fraser Timber Co Ltd (WFG) has a Forward P/S ratio of 0.87. This means the market is valuing WFG at $0.87 for every dollar of expected revenue over the next 12 months.

WFG Valuation