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Woolworths Group Ltd (WOW) Fair Value & Analysis

Consumer Defensive · AU · Market cap A$47.9B (≈ $34.5B) · ISIN AU000000WOW2

What is Woolworths Group Ltd really worth?

WG Woolworths Group Ltd WOW · AU
PriceA$40.32
Fair ValueA$8.33
Upside−79.3%
Quality62/100

A solid business, but trading 384% above our fair value of A$8.33.

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Strengths

Moderate debt · generates free cash flow

Risks

!Mixed Growth (revenue 5y +5.4 %/yr)
!Thin margins · 0.9% net margin
!Trails peers (2/15)
!Moderate moat 45/100
!Evidence only medium, so the estimate is less certain
!The models disagree: range A$5.66 to A$17.80
!Weak on future: 17 out of 100

For context

·2.23% dividend yield
Evidence: Medium Range A$5.66 – A$17.80

Fair value as of: Sep 5, 2026

From 20 valuation models · updated today

Share price +0.4% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (A$17.80). The favourable scenario is already priced in.
  • The model range is unusually wide (A$5.66 to A$17.80). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (62/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

A$40.66 A$25.59 Fair Value A$8.33 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 5, 2026.

How to read this chart

60‑month range A$25.59 – A$40.66 · fair‑value band A$5.66 – A$17.80 · the A$40.32 price screens above the A$8.33 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 5, 2026.

Full chart & analysis →

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Analysis

Woolworths Group Ltd (WOW) currently trades at A$40.32, while our model-based Fair Value estimate is A$8.33, implying the stock looks roughly 384.0% overvalued today. The Quality Score stands at 62/100 (solid quality), in the Consumer Defensive sector. Bull case: the Growth DCF group reads highest at a median of A$20.27 per share, and 0 of the 20 models we run sit above the A$40.32 price. Bear case: the Asset-Based group reads lowest at A$2.67, and 20 of the 20 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Woolworths Group Ltd generated revenue of A$70.3B at a net margin of 0.9%. Revenue grew 3.4% year over year. It earns a return on equity of 11.9%. Net debt stands at A$16.1B. Fundamentals as of Sep 5, 2026

Our scenario range runs from A$5.66 (bear case) to A$17.80 (bull case); at A$40.32, 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 last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades near its 52-week high and 60% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at −16% fair-value upside, at −79%, WOW screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
FCF DCF A$14.62 A$22.99 A$35.10 79
Growth DCF A$15.09 A$22.79 A$33.40 78
Owner Earnings A$9.01 A$14.75 A$23.07 75
All 20 models by family
DCF Models
FCF DCF A$14.62 A$22.99 A$35.10 79
Owner Earnings A$9.01 A$14.75 A$23.07 75
5Y Revenue Exit A$12.24 A$20.09 A$29.77 72
5Y EBITDA Exit A$11.75 A$19.20 A$27.52 75
5Y P/E Exit A$10.15 A$16.33 A$22.48 71
10Y Revenue Exit A$12.52 A$19.74 A$28.75 66
10Y EBITDA Exit A$12.65 A$19.14 A$27.09 68
10Y P/E Exit A$11.65 A$17.18 A$23.38 64
Earnings-Based
Graham-Dodd A$5.36 A$13.47 A$17.49 65
PEG = 1.0 A$2.48 A$3.54 A$4.60 57
Multiples
P/E Multiple A$12.42 A$16.55 A$20.69 63
P/S Multiple A$10.05 A$13.40 A$16.75 58
P/B Multiple A$10.05 A$13.40 A$16.75 55
EV/EBITDA A$11.99 A$17.08 A$22.17 67
EV/Revenue A$11.79 A$18.25 A$24.71 53
Asset-Based
NCAV (Graham) A$1.99 A$2.67 A$3.98 54
Growth DCF
Growth DCF A$15.09 A$22.79 A$33.40 78
Rev-Margin DCF A$12.24 A$20.27 A$29.05 72
Economic Profit
Residual Income A$5.14 A$6.80 A$26.25 64
Growth Earnings
Growth-Adj P/E A$9.58 A$13.69 A$17.80 67

Widest divergence: Growth DCF (A$20.27) versus Asset-Based (A$2.67). Highest evidence: FCF DCF (79).

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Key figures & financial health

P/E ratio 82.3
P/S ratio 1.15 P/E × margin
EPS (TTM) A$0.4900 price ÷ EPS = P/E 82.3
Dividend yield 2.2% payout 184%
Net margin 1.4% FY2025
Return on equity 11.9% TTM
More key figures
Profitability
Return on assets (EBIT) 4.6% avg 5y
Operating margin 2.6% TTM
Growth
Revenue (TTM) A$70.3B TTM
Revenue growth (YoY) +3.4% 3y avg +4.3%
EPS growth (YoY) −49.3%
Balance sheet & cash flow
Free cash flow A$2.0B FY2025
Net debt A$16.1B FY2025 · ≈ 8.0 yrs of FCF

Figures from reported company fundamentals · as of Sep 5, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 60 · Market factors (momentum, volatility) 83

Profitability 64
Margins and returns on capital today
Quality Growth 56
Are margins and returns improving?
Cashflow 44
Earnings quality: real cash, not paper profit
Fin. Strength 41
Balance sheet, leverage, solvency risk
Investment 96
Disciplined investing over empire-building
Low Volatility 93
Calm price path (market factor)
Momentum 70
Price trend over the last 3–12 months (market factor)
52W Momentum 93
Distance to the 52-week high (market factor)
Net Issuance 78
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Woolworths Group Limited operates retail stores in Australia and New Zealand. The company operates through Australian Food, Australian B2B, New Zealand Food, W Living, and Other segments. The Australian Food segment procures and resells food and related products; and provides services to customers in Australia.

Full company description

Woolworths Group Limited operates retail stores in Australia and New Zealand. The company operates through Australian Food, Australian B2B, New Zealand Food, W Living, and Other segments. The Australian Food segment procures and resells food and related products; and provides services to customers in Australia. The Australian B2B segment engages in procurement and distribution of food and related products for resale to other businesses, as well as provision of supply chain services to business customers in Australia. The New Zealand Food segment is involved in the procurement of food, drinks, household essentials and related products; and provides services to retail customers in New Zealand. W Living segment procures general merchandise products to customers in Australia. The Other segment operates Quantium retail store. The company was formerly known as Woolworths Limited and changed its name to Woolworths Group Limited in December 2017. Woolworths Group Limited was incorporated in 1924 and is based in Bella Vista, Australia.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Woolworths Group Ltd reported revenue of A$69.1B in FY2025 versus A$55.7B in FY2021, a compound +5.5%/yr. Reported net income was A$963M in FY2025, compounding −17.5%/yr from FY2021.

Growth Quality 57/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
A$69.1B
Latest YoY
+1.7%
Avg. revenue 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.
+4.3%
Avg. revenue growth/yr (5Y) 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.
+5.4%
Avg. revenue growth/yr (33Y) 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.
+6.3%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−5.0% (−7.2 + 2.2)
Revenue +5.5%/yr
FY21 A$55.7B
FY22 A$60.8B
FY23 A$64.3B
FY24 A$67.9B
FY25 A$69.1B
Net income −17.5%/yr
FY21 A$2.1B
FY22 A$1.5B
FY23 A$1.6B
FY24 A$108M
FY25 A$963M
Character of growth · EPS growth decomposed (2014-2025) −9.9 % p.a.
Revenue per share +1.9 %

of which total revenue +1.6 % · buybacks/dilution +0.4 %

EBIT margin −6.2 %
Tax rate −3.2 %
Residual (interest, one-offs) −2.6 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

WOW screens 384% overvalued. Compare with Loblaw Companies Limited →

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Cite: Fair Value Calculator (2026). "Woolworths Group Ltd Fair Value". https://www.fairvalue-calculator.com/stock/WOW

Peer Group

Grocery Stores · 77 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 62 · Above median
Fair Value upside −79% · Bottom 25%
Return on equity (TTM) 12% · Below median
Return on assets 4% · Below median
Net margin (TTM) 1% · Bottom 25%
Operating margin (TTM) 3% · Below median
Revenue growth 3% · Above median
Dividend yield (TTM) 2.2% · Below median
Debt / equity 1.08× · Higher than 75% of peers

Valuation Multiples vs Grocery Stores median · lower = cheaper

P/E (TTM) 82.3× · Pricier than 75% of peers
P/B 7.11× · Pricier than 75% of peers
P/S (TTM) 0.49× · Pricier than median
P/FCF 17.1× · Pricier than 75% of peers
EV/EBITDA 11.7× · Pricier than 75% of peers
PEG 2.16× · Pricier than median

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 40
FUTURE17 · sector 17
PAST48 · sector 50
HEALTH46 · sector 92
DIVIDEND45 · sector 52

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

Insider activity: 45/100

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

Similar stocks

10 more Grocery Stores stocks, each showing price versus our Fair Value estimate (as of Sep 5, 2026).

Stock Price Fair Value vs Fair Value
Loblaw Companies Limited L C$60.79 C$44.44 −27%
Koninklijke Ahold Delhaize N.V AD €30.57 €53.50 +75%
The Kroger Co KR $57.72 $28.19 −51%
George Weston Limited WN C$98.50 C$147.70 +50%
Metro Inc MRU C$88.26 C$94.01 +7%
Carrefour SA CA €15.63 €11.19 −28%
CP ALL Public Company TCPD 1.81 SGD 2.35 SGD +30%
BIM Birlesik Magazalar A.S., BIMAS 418.25 TRY 267.12 TRY −36%
Kesko Oyj KESKOA €21.25 €11.62 −45%
President Chain Store Corporation 2912 219.50 TWD 183.31 TWD −16%

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Frequently asked questions

Is Woolworths Group Ltd (WOW) overvalued or undervalued?
As of Sep 5, 2026, our model estimates a fair value of A$8.33 versus a price of A$40.32, about −79% upside (overvalued).
What is the fair value of WOW?
Our model-based fair value for Woolworths Group Ltd is A$8.33 (as of Sep 5, 2026), built from audited fundamentals. The current price: A$40.32.
What is the quality score of WOW?
Woolworths Group Ltd has a Quality Score of 62/100. 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 Woolworths Group Ltd (WOW)?
Woolworths Group Ltd reported trailing-twelve-month revenue of about A$70.3B (latest available figure, as of Sep 5, 2026).
What is the net profit margin of WOW?
The net profit margin of Woolworths Group Ltd is about 0.9%, meaning it keeps roughly 0.9% of revenue as net income. Based on the latest reported figures.
Does Woolworths Group Ltd pay a dividend?
Woolworths Group Ltd currently shows a dividend yield of about 2.23% relative to its recent price (as of Sep 5, 2026).
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