Latest Ratios: P/E Ratio -6.0x · EV/EBITDA 79.9x · ROE -17.5%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.3B | $4.8B | $7.0B | $7.1B | $6.8B | $10.4B | $4.4B | $3.1B | $3.7B | $4.9B | $2.9B |
| Enterprise Value | $5.4B | $5.0B | $6.6B | $6.8B | $6.2B | $9.1B | $4.5B | $3.8B | $4.1B | $5.1B | $3.1B |
| P/E Ratio → | -5.97 | — | — | — | 3.47 | 3.53 | 7.24 | — | 6.19 | 10.13 | 12.28 |
| P/S Ratio | 0.99 | 0.63 | 1.14 | 1.10 | 0.70 | 0.99 | 0.96 | 0.82 | 0.82 | 1.19 | 0.87 |
| P/B Ratio | 0.97 | 0.60 | 1.01 | 0.99 | 0.89 | 1.07 | 1.40 | 1.60 | 1.73 | 2.24 | 1.73 |
| P/FCF | — | — | 40.35 | 148.34 | 3.94 | 3.66 | 5.55 | — | 9.31 | 10.79 | 9.33 |
| P/OCF | 54.39 | 34.92 | 10.62 | 13.56 | 3.08 | 3.00 | 4.48 | 54.98 | 5.52 | 6.77 | 5.63 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.66 | 1.07 | 1.05 | 0.64 | 0.87 | 0.98 | 1.03 | 0.91 | 1.25 | 0.95 |
| EV / EBITDA | 79.92 | 51.97 | 11.87 | 26.30 | 1.96 | 2.01 | 3.96 | 39.87 | 4.18 | 5.94 | 6.23 |
| EV / EBIT | — | — | 103.27 | — | 2.36 | 2.31 | 5.46 | — | 5.02 | 7.37 | 9.03 |
| EV / FCF | — | — | 37.98 | 140.80 | 3.57 | 3.20 | 5.64 | — | 10.30 | 11.34 | 10.16 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | -0.6% | -0.6% | 29.8% | 27.4% | 47.0% | 55.8% | 41.3% | 25.1% | 40.9% | 39.2% | 33.2% |
| Operating Margin | -8.7% | -8.7% | 0.1% | -4.4% | 26.4% | 37.5% | 20.3% | -2.7% | 17.5% | 16.9% | 10.8% |
| Net Profit Margin | -17.2% | -17.2% | -0.1% | -2.6% | 20.4% | 28.0% | 12.8% | -3.1% | 13.2% | 11.6% | 7.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -17.5% | -17.5% | -0.1% | -2.3% | 22.7% | 45.7% | 23.2% | -5.7% | 27.7% | 24.7% | 15.1% |
| ROA | -13.6% | -13.6% | -0.1% | -1.7% | 17.0% | 31.7% | 13.2% | -3.2% | 16.7% | 15.1% | 9.2% |
| ROIC | -6.8% | -6.8% | 0.1% | -3.1% | 24.9% | 50.8% | 23.5% | -2.9% | 23.9% | 23.9% | 13.8% |
| ROCE | -7.6% | -7.6% | 0.1% | -3.2% | 24.5% | 48.1% | 24.5% | -3.4% | 25.4% | 25.3% | 15.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.06 | 0.06 | 0.03 | 0.07 | 0.07 | 0.07 | 0.21 | 0.42 | 0.26 | 0.23 | 0.18 |
| Debt / EBITDA | 4.74 | 4.74 | 0.41 | 2.09 | 0.17 | 0.15 | 0.58 | 8.35 | 0.57 | 0.59 | 0.61 |
| Net Debt / Equity | — | 0.02 | -0.06 | -0.05 | -0.08 | -0.14 | 0.02 | 0.42 | 0.18 | 0.11 | 0.15 |
| Net Debt / EBITDA | 1.87 | 1.87 | -0.74 | -1.41 | -0.20 | -0.29 | 0.07 | 8.23 | 0.40 | 0.29 | 0.51 |
| Debt / FCF | — | — | -2.37 | -7.54 | -0.36 | -0.46 | 0.09 | — | 0.99 | 0.55 | 0.83 |
| Interest Coverage | -25.00 | -25.00 | 2.46 | -8.35 | 113.54 | 82.94 | 24.35 | -3.95 | 32.62 | 28.86 | 14.51 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.13 | 2.13 | 1.97 | 2.26 | 3.47 | 2.67 | 2.53 | 1.37 | 2.26 | 2.21 | 2.04 |
| Quick Ratio | 0.86 | 0.86 | 1.06 | 1.45 | 2.17 | 1.79 | 1.44 | 0.50 | 0.93 | 1.07 | 0.78 |
| Cash Ratio | 0.31 | 0.31 | 0.69 | 0.86 | 1.47 | 1.30 | 0.87 | 0.02 | 0.27 | 0.44 | 0.11 |
| Asset Turnover | — | 0.73 | 0.70 | 0.69 | 0.97 | 0.79 | 0.86 | 1.04 | 1.28 | 1.14 | 1.24 |
| Inventory Turnover | 6.76 | 6.76 | 5.13 | 5.51 | 4.98 | 3.44 | 3.66 | 4.97 | 4.57 | 4.66 | 5.11 |
| Days Sales Outstanding | — | 21.17 | 18.68 | 22.85 | 18.62 | 24.29 | 24.70 | 29.63 | 22.67 | 25.03 | 24.36 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.8% | 2.9% | 1.4% | 1.4% | 1.4% | 0.7% | 1.0% | 1.4% | 0.7% | 0.5% | 0.6% |
| Payout Ratio | — | — | — | — | 4.8% | 2.5% | 7.3% | — | 4.6% | 4.7% | 6.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | 28.9% | 28.3% | 13.8% | — | 16.1% | 9.9% | 8.1% |
| FCF Yield | — | — | 2.5% | 0.7% | 25.4% | 27.3% | 18.0% | — | 10.7% | 9.3% | 10.7% |
| Buyback Yield | 2.4% | 3.7% | 2.0% | 1.8% | 29.2% | 12.5% | 0.0% | 2.0% | 13.5% | 0.3% | 4.9% |
| Total Shareholder Yield | 4.2% | 6.7% | 3.4% | 3.2% | 30.6% | 13.2% | 1.0% | 3.4% | 14.2% | 0.7% | 5.5% |
| Shares Outstanding | — | $79M | $81M | $83M | $94M | $110M | $69M | $69M | $75M | $79M | $81M |
Cyclical Commodity Price Volatility
Based on reported financial data, West Fraser's current EV/EBITDA multiple of 79.66 appears heavily distorted by depressed earnings, while the forward EV/EBITDA of 5.88 suggests that investors are pricing in a significant recovery in mid-cycle profitability rather than relying on the company's trailing negative earnings performance.
The extreme disparity between trailing and forward multiples indicates that the market is looking past current cyclical headwinds toward a normalized earnings environment. Investors should monitor whether the forward multiple accurately captures the structural margin improvements from the Norbord acquisition or if it remains overly optimistic regarding the timing of a housing market rebound.
As reported in recent financial statements, West Fraser's ROIC has deteriorated to -1.9% in 2026Q1, reflecting a sharp decline from historical levels as the company struggles to generate returns above its cost of capital during this period of intense cyclical margin compression and asset impairment.
The consistent decay in ROIC suggests that the company's manufacturing-heavy model is currently failing to cover the capital intensity required to maintain its mill footprint. This trend warrants further investigation into whether the current restructuring efforts in British Columbia will be sufficient to restore capital efficiency once commodity prices stabilize.
According to quarterly filings, West Fraser's cash conversion cycle has expanded to 78 days in 2026Q1, driven by a significant increase in days inventory outstanding to 114 days, which suggests that the company is struggling to move product efficiently in a softening demand environment.
The lengthening of the cash conversion cycle indicates that inventory is accumulating faster than it can be sold, which may necessitate further price concessions or production curtailments. This inefficiency highlights the difficulty of managing working capital when demand for lumber and OSB is highly elastic and sensitive to interest rate fluctuations.
Based on the company's reported figures, West Fraser maintains a robust balance sheet with a debt-to-equity ratio of 0.09 as of 2026Q1, which provides a critical financial cushion that distinguishes the firm from more highly leveraged peers during this period of negative operating cash flow.
The low leverage profile appears to be a deliberate strategic choice that allows the company to navigate cyclical troughs without the immediate threat of covenant breaches or liquidity crises. This conservative stance is vital for maintaining operational flexibility while the company continues to shutter uneconomic facilities and optimize its production footprint.
The price-to-earnings ratio is frequently misapplied to West Fraser's business model, as reported in financial analysis, because it fails to account for the massive non-cash asset impairments and cyclical inventory write-downs that currently render the company's net income an unreliable indicator of true earning power.
Investors should instead focus on EV/EBITDA or normalized free cash flow metrics to better assess the company's underlying operational health. Relying on P/E in a cyclical trough obscures the firm's ability to generate cash and may lead to an incorrect assessment of the company's value relative to its manufacturing peers.
Includes 30+ ratios · 30 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying WFG stock.
West Fraser Timber Co. Ltd.'s current P/E ratio is -6.0x. The historical average is 18.0x.
West Fraser Timber Co. Ltd.'s current EV/EBITDA is 79.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.7x.
West Fraser Timber Co. Ltd.'s return on equity (ROE) is -17.5%. The historical average is 9.2%.
Based on historical data, West Fraser Timber Co. Ltd. is trading at a P/E of -6.0x. Compare with industry peers and growth rates for a complete picture.
West Fraser Timber Co. Ltd.'s current dividend yield is 1.81%.
West Fraser Timber Co. Ltd. has -0.6% gross margin and -8.7% operating margin.
West Fraser Timber Co. Ltd.'s Debt/EBITDA ratio is 4.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.