Forgetting about the current period, which is affected by all sorts of things, the broader point about the fairly flat operating income trajectory for Wesfarmers matters more, to our mind.
The market was willing to pay a higher price for less assets (tongue-in-cheek, as that reflects the COL (Coles) demerger, but only just t-i-c. It remains the case that the spread to book value has risen materially over the past few years.
On a simple regression basis, you can make the case that WES is expensive, relative to peers.
But you need only eyeball a few select measures to reach a similar conclusion.
Not one for us, at these levels.
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