Value Wesfarmers by testing what its earnings can sustainably support, not by treating one year’s profit, dividend or share-price quote as a forecast. The FY2026 results provide a starting point: basic EPS was 253.4 cents, fully franked ordinary dividends totalled A$2.22 per share, and the investor centre displayed a dated A$76.22 share price on 2 October 2026. The resulting multiples and yields are useful only when their dates and earnings basis are explicit—and when the very different conditions across Bunnings, Kmart, Officeworks and the group’s other businesses are considered.
Start with earnings, and keep the comparison basis consistent
Wesfarmers Limited’s 2026 full-year results cover the year ended 30 June 2026. The company reported revenue of A$47,274 million, statutory net profit after tax (NPAT) of A$2,874 million and basic earnings per share (EPS) of 253.4 cents. The result was released on 27 August 2026. Wesfarmers’ FY2026 results
FY2025 included significant items, so the growth rate depends on the comparison basis. On the company’s adjusted basis, FY2026 NPAT and EPS each increased 8.3 per cent. Do not describe that adjusted growth as the change in statutory profit without explaining the adjustment. For a price-to-earnings (P/E) calculation, use EPS and the share price from clearly identified periods; if using adjusted earnings, label them as adjusted and use the company’s comparable adjusted figures.
Calculate a P/E from a dated price and EPS
The basic calculation is share price divided by annual EPS, with both figures expressed in the same currency and per-share units. As a historical illustration only, the investor centre displayed A$76.22 on 2 October 2026 at 16:10:19 AEST. Dividing A$76.22 by FY2026 EPS of A$2.534 gives approximately 30.1 times FY2026 EPS. This is not a live multiple or a current valuation: refresh the share price and recalculate before relying on it.
A P/E is a description of the price relative to a chosen earnings figure, not a fair-value verdict. A higher multiple may require confidence that earnings can grow or remain resilient; a lower multiple may reflect weaker growth expectations or greater perceived risk. The FY2026 release does not provide an intrinsic value or company-endorsed target multiple. Any valuation range therefore depends on the analyst’s assumptions about sustainable EPS, growth, risk, capital requirements and the multiple applied.
Separate ordinary dividends from one-off distributions
Wesfarmers’ FY2026 fully franked ordinary dividends totalled A$2.22 per share: an interim dividend of A$1.02 and a final dividend of A$1.20. The final dividend notice sets out its declaration and payment details. Wesfarmers dividend information FY2026 results
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Separately, the company paid a A$1.50-per-share capital management distribution in December 2025, comprising a A$1.10 capital return and a A$0.40 special dividend. It is not part of the recurring FY2026 ordinary dividend and should not be added to the A$2.22 as if it were a regular annual payment. The Appendix 3A.1 notice gives the distribution details. Wesfarmers FY2026 dividend and distribution notice
Calculate ordinary dividend yield
Divide the ordinary dividend per share by the share price, then multiply by 100. Using the FY2026 A$2.22 ordinary dividend and the historical A$76.22 quote from 2 October 2026 gives an illustrative yield of about 2.91 per cent. It is a backward-looking calculation using a dated share price and the FY2026 dividend; it is not a forecast yield. Check the latest declared ordinary dividend and current market price before using the result. Franking is a reported feature of these dividends, but the company’s release alone does not establish an individual investor’s after-tax outcome.
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Assess the businesses separately before assuming earnings will persist
Wesfarmers is not a single uniform retail operation. FY2026 results differed across its divisions, reflecting distinct trading conditions and business drivers. The figures below are from the company’s 2026 full-year results; revenue and earnings are in A$ millions. Wesfarmers FY2026 results
| Business | FY2026 revenue | FY2026 earnings | Reported context |
|---|---|---|---|
| Bunnings | A$20,399 million | A$2,455 million; up 5.1 per cent | Revenue rose 4.1 per cent; total store sales grew 4.0 per cent. |
| Kmart Group | A$11,751 million | A$1,109 million; up 6.0 per cent | Revenue rose 2.8 per cent. |
| Officeworks | A$3,698 million | A$165 million; down 22.2 per cent | The company said results reflected one-off costs associated with a transformation program. |
| WesCEF | Not stated in the cited FY2026 results summary | A$473 million | Results reflected the timing of higher ammonia prices and an improved contribution from lithium. |
| Wesfarmers Health | Not stated in the cited FY2026 results summary | A$76 million | The company attributed improvement to its transformation, Priceline network sales and wholesale performance. |
For valuation, ask whether a division’s earnings change appears repeatable, temporary or tied to a particular market condition. Officeworks’ stated transformation costs, for example, are relevant to normalized earnings, but do not establish how quickly or fully earnings will recover. WesCEF’s ammonia-price timing and lithium contribution have different drivers from consumer retail demand. Avoid applying one growth assumption to every division without a reasoned basis.
Use management’s FY2027 outlook as context, not a forecast
In its 27 August 2026 results release, management said consumer demand remained resilient while cost-of-living pressure and uncertainty affected sentiment. It expected elevated labour, energy and supply-chain costs to persist, and identified uncertainty around inflation, house prices, interest rates and tax settings. Managing Director Rob Scott said: “As households continued to experience cost of living pressures, our retail businesses dropped prices on thousands of products during the year to support household budgets.” Wesfarmers FY2026 results release
Management also reported sales trends for the first seven weeks of FY2027 relative to the second half of FY2026: Bunnings growth was slightly stronger, Kmart growth was in line, and Officeworks sales remained positive but were growing at a slightly slower rate. These are dated trading observations, not assurances about full-year results. For an earnings scenario, consider how persistent cost pressures, household demand, store and digital activity, productivity measures and lithium ramp-up might affect the divisions differently.
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Account for debt and investment needs
Wesfarmers reported net financial debt of A$5,295 million and expected FY2027 net capital expenditure of A$1,300–1,500 million. Both figures inform the assessment of financial flexibility and the cash needed to fund operations and investment, but neither determines intrinsic value by itself. Consider whether your earnings assumptions are consistent with the capital spending outlook and the company’s capacity to fund it. Wesfarmers FY2026 results
Build valuation cases with explicit assumptions
A useful analysis shows how the conclusion changes when earnings or the valuation multiple changes. Set out assumptions rather than presenting an unsupported target price. For each case, specify:
- Earnings basis: statutory or adjusted EPS, and whether FY2026 represents a sustainable level or needs normalization.
- Growth and risk: the growth rate assumed, its time horizon, and the risks that could prevent earnings from reaching it.
- Divisional durability: how Bunnings, Kmart, Officeworks, WesCEF and Wesfarmers Health are treated in light of their different FY2026 results and operating drivers.
- Shareholder distributions: ordinary dividend yield separately from special dividends and capital returns.
- Balance sheet and investment: how net debt and expected capital expenditure affect the earnings and cash flow you consider available to shareholders.
- Valuation method: the P/E multiple or discount rate selected, and why it fits the assumed growth and risk.
Refresh the share price and dividend announcements when preparing a current calculation. The company’s investor centre provides market and dividend information, including key-date details. Wesfarmers investor centre dividend information
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