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WEG S.A (WEGE3) Fair Value & Analysis

Industrials · AR · Market cap 52.5T ARS

WS WEG S.A WEGE3 · BA
Price14,900 ARS
Fair Value4,338 ARS
Upside-70.9%
Quality69/100
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Healthy Growth
Solidly profitable · 15.6% net margin
Low debt · generates free cash flow
Ranks above peers (8/13)
Wide moat 85/100
Evidence: Medium Range 2,944 ARS – 6,460 ARS Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated yesterday

Fair value updated Aug 13, 2026, revised from 7,948 ARS to 4,338 ARS (−45.4%) since Jul 21, 2026. Share price +5.8% over the past month.

A solid business, but screening 71% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (6,460 ARS). The favourable scenario is already priced in.
  • Solid but not exceptional quality (69/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (2,944 ARS to 6,460 ARS) leaves room in how you read the outcome.
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Price vs Fair Value (18 months)

15,430 ARS 8,400 ARS Fair Value 4,338 ARS Feb 2025 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

18‑month range 8,400 ARS – 15,430 ARS · fair‑value band 2,944 ARS – 6,460 ARS · the 14,900 ARS price screens above the 4,338 ARS fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

WEG S.A (WEGE3) currently trades at 14,900 ARS, while our model-based Fair Value estimate is 4,338 ARS, implying the stock looks roughly 70.9% overvalued today. The Quality Score stands at 69/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, WEG S.A generated revenue of 40.2B ARS at a net margin of 15.6%. Revenue declined 6.1% year over year. It earns a return on equity of 32.5%. Fundamentals as of Aug 13, 2026

Our scenario range runs from 2,944 ARS (bear case) to 6,460 ARS (bull case); at 14,900 ARS, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 7% below its 52-week high and 80% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -55% fair-value upside, at -71%, WEGE3 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (441.42 ARS to 6,550 ARS). Read the values as a conservative anchor, not as a price target.
Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF 2,047 ARS 3,373 ARS 5,673 ARS 80
Residual Income 1,467 ARS 1,724 ARS 6,515 ARS 76
Rev-Margin DCF 2,077 ARS 3,411 ARS 5,054 ARS 74
All 26 models by family
DCF Models
FCF DCF 2,034 ARS 3,396 ARS 5,750 ARS 38
Owner Earnings 2,487 ARS 4,186 ARS 7,117 ARS 31
5Y Revenue Exit 2,077 ARS 3,438 ARS 5,246 ARS 39
5Y EBITDA Exit 2,812 ARS 4,894 ARS 7,445 ARS 41
5Y P/E Exit 3,142 ARS 5,546 ARS 8,220 ARS 38
10Y Revenue Exit 1,982 ARS 3,271 ARS 5,157 ARS 36
10Y EBITDA Exit 2,539 ARS 4,338 ARS 6,969 ARS 37
10Y P/E Exit 2,758 ARS 4,816 ARS 7,609 ARS 35
Earnings-Based
Graham-Dodd 1,640 ARS 6,550 ARS 8,901 ARS 54
Lynch FV 1,626 ARS 2,323 ARS 3,020 ARS 50
PEG = 1.0 1,626 ARS 2,323 ARS 3,020 ARS 46
EPV 2,548 ARS 2,963 ARS 3,331 ARS 59
Dividend Discount
Gordon GGM 1,959 ARS 4,279 ARS 7,201 ARS 70
DDM Multi-Stage 1,959 ARS 3,506 ARS 4,460 ARS 61
Multiples
P/E Multiple 3,800 ARS 5,067 ARS 6,334 ARS 63
P/S Multiple 2,317 ARS 3,088 ARS 3,860 ARS 58
P/B Multiple 2,225 ARS 2,966 ARS 3,708 ARS 55
EV/EBIT 3,990 ARS 5,256 ARS 6,520 ARS 53
EV/EBITDA 3,468 ARS 4,559 ARS 5,648 ARS 54
EV/Revenue 2,145 ARS 2,979 ARS 3,812 ARS 43
Asset-Based
NCAV (Graham) 330.27 ARS 441.42 ARS 658.96 ARS 50
Growth DCF
Growth DCF 2,047 ARS 3,373 ARS 5,673 ARS 80
Rev-Margin DCF 2,077 ARS 3,411 ARS 5,054 ARS 74
Economic Profit
Residual Income 1,467 ARS 1,724 ARS 6,515 ARS 76
ROIC Compounder 2,726 ARS 3,400 ARS 4,171 ARS 72
Growth Earnings
Growth-Adj P/E 2,863 ARS 4,090 ARS 5,318 ARS 68

Widest divergence: DCF Models (4,186 ARS) versus Asset-Based (441.42 ARS). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 40.2B ARS
Revenue growth (YoY) -6.1%
Net margin 15.6%
Return on equity 32.5%
Free cash flow 3.8B ARS FY2025
Operating margin 18.8%
More key figures
Dividend yield 0.0%
EPS growth (YoY) -5.8%

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 69/100

Of which business quality 65 · Market factors (momentum, volatility) 74

Profitability 76
Margins and returns on capital today
Quality Growth 54
Are margins and returns improving?
Cashflow 45
Earnings quality: real cash, not paper profit
Fin. Strength 73
Balance sheet, leverage, solvency risk
Investment 58
Disciplined investing over empire-building
Low Volatility 68
Calm price path (market factor)
Momentum 67
Price trend over the last 3–12 months (market factor)
52W Momentum 93
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

WEG S.A. produces and sells capital goods in Brazil and internationally. The company offers electric motors, generators, and transformers; reducers and gearmotors; hydraulic and steam turbines; frequency converters, starters engines and switching devices; control and protection of electrical circuits for industrial automation; sockets and switches; and …

Full company description

WEG S.A. produces and sells capital goods in Brazil and internationally. The company offers electric motors, generators, and transformers; reducers and gearmotors; hydraulic and steam turbines; frequency converters, starters engines and switching devices; control and protection of electrical circuits for industrial automation; sockets and switches; and solutions for electric traction of heavy vehicles, utility and locomotives, and electric propulsion of naval transport. It also provides solutions for generating renewable and distributed energy, in small hydroelectric plants, biomass, wind and solar; solutions for industry; UPSs and alternators for generator sets; substations electrical, conventional and mobile; industrial electronic systems; industrial paints, varnishes, and paints for automotive repainting. WEG S.A. was founded in 1961 and is headquartered in Jaraguá do Sul, Brazil.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2025 · reported fiscal years

WEG S.A reported revenue of 40.8B ARS in FY2025 versus 29.9B ARS in FY2022, a compound +10.9%/yr. Reported net income was 6.4B ARS in FY2025, compounding +14.9%/yr from FY2022.

Growth Quality 93/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
40.8B ARS
Latest YoY
+7.4%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.9%
Revenue +10.9%/yr
FY22 29.9B ARS
FY23 32.5B ARS
FY24 38.0B ARS
FY25 40.8B ARS
Net income +14.9%/yr
FY22 4.2B ARS
FY23 5.7B ARS
FY24 6.0B ARS
FY25 6.4B ARS

WEGE3 screens 71% overvalued. Compare with Contemporary Amperex Technology Co →

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Cite: Fair Value Calculator (2026). "WEG S.A Fair Value". https://www.fairvalue-calculator.com/stock/WEGE3

Peer Group

Electrical Equipment & Parts · 525 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 69 · Top 25%
Fair Value upside −71% · Bottom 25%
Return on equity (TTM) 33% · Top 25%
Return on assets 12% · Top 25%
Net margin (TTM) 16% · Top 25%
Operating margin (TTM) 19% · Top 25%
Revenue growth -6% · Bottom 25%
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.06× · Higher than median

Valuation Multiples vs Electrical Equipment & Parts median · lower = cheaper

P/B 2.11× · Cheaper than median
P/S (TTM) 0.92× · Cheaper than median
P/FCF 9.8× · Pricier than median
EV/EBITDA 3.7× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 0 · sector 57
PAST 100 · sector 27
HEALTH 97 · sector 97
DIVIDEND 0 · sector 20

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$652.50 HK$394.19 -40%
Delta Electronics (Thailand) Public Company DELTA 269.00 THB 40.28 THB -85%
LG Energy Solution, Ltd 373220 365,500 KRW 201,455 KRW -45%
Sungrow Power Supply Co 300274 ¥117.53 ¥123.83 +5%
HD Hyundai Electric Co 267260 782,000 KRW 371,133 KRW -53%
LS ELECTRIC Co 010120 208,500 KRW 29,594 KRW -86%
Hyosung Heavy Industries Corporation 298040 2,892,000 KRW 1,013,099 KRW -65%
Hitachi Energy India Limited POWERINDIA ₹35,800 ₹6,106 -83%
Polycab India Limited POLYCAB ₹9,289 ₹3,218 -65%
BizLink Holding 3665 2,155 TWD 969.40 TWD -55%

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Frequently asked questions

Is WEG S.A (WEGE3) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 4,338 ARS versus a price of 14,900 ARS, about −71% (overvalued).
What is the fair value of WEGE3?
Our model-based fair value for WEG S.A is 4,338 ARS (as of Aug 13, 2026), built from audited fundamentals. The current price is 14,900 ARS.
What is the quality score of WEGE3?
WEG S.A has a Quality Score of 69/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of WEG S.A (WEGE3)?
WEG S.A reported trailing-twelve-month revenue of about 40.2B ARS (latest available figure, as of Aug 13, 2026).
What is the net profit margin of WEGE3?
The net profit margin of WEG S.A is about 15.6%, meaning it keeps roughly 15.6% of revenue as net income. Based on the latest reported figures.
Does WEG S.A pay a dividend?
WEG S.A currently shows a dividend yield of about 0.02% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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