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WEG S.A (WEGE3) Fair Value & Analysis

Industrials · AR · Market cap 52.5T ARS

WS WEG S.A WEGE3 · BA
Price13,210 ARS
Fair Value7,948 ARS
Upside-39.8%
Quality69/100
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Healthy Growth
Solidly profitable · 15.6% net margin
Low debt · generates free cash flow
Ranks above peers (10/13)
Wide moat 85/100
Evidence: Medium Range 4,652 ARS – 10,347 ARS Share as image

Fair value as of: Jul 21, 2026

From 26 valuation models · updated 17 days ago

Fair value updated Jul 21, 2026, revised from 7,763 ARS to 7,948 ARS (+2.4%) since Jun 24, 2026. Share price +0.8% over the past month.

A solid business, but screening 40% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (10,347 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 (4,652 ARS to 10,347 ARS) leaves room in how you read the outcome.
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Price vs Fair Value (16 months)

15,430 ARS 8,400 ARS Fair Value 7,948 ARS Feb 2025 Jun 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 21, 2026.

How to read this chart

16‑month range 8,400 ARS – 15,430 ARS · fair‑value band 4,652 ARS – 10,347 ARS · the 13,210 ARS price screens above the 7,948 ARS fair value. Dashed = 300-day average. As of Jul 21, 2026.

Full chart & analysis →

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Analysis

WEG S.A (WEGE3) currently trades at 13,210 ARS, while our model-based Fair Value estimate is 7,948 ARS, implying the stock looks roughly 39.8% overvalued today. We read business quality 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 Jul 21, 2026

Our scenario range runs from 4,652 ARS (bear case) to 10,347 ARS (bull case); at 13,210 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 17% below its 52-week high and 59% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -53% fair-value upside, at -40%, WEGE3 screens cheaper 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF 3,669 ARS 6,046 ARS 10,171 ARS 80
Residual Income 2,630 ARS 3,091 ARS 11,680 ARS 76
Rev-Margin DCF 4,626 ARS 7,862 ARS 11,839 ARS 74
All 26 models by family
DCF Models
FCF DCF 3,647 ARS 6,089 ARS 10,308 ARS 38
Owner Earnings 4,458 ARS 7,504 ARS 12,759 ARS 31
5Y Revenue Exit 4,626 ARS 7,948 ARS 12,397 ARS 39
5Y EBITDA Exit 5,041 ARS 8,773 ARS 13,348 ARS 41
5Y P/E Exit 5,431 ARS 9,545 ARS 14,117 ARS 38
10Y Revenue Exit 4,108 ARS 7,174 ARS 11,711 ARS 36
10Y EBITDA Exit 4,552 ARS 7,777 ARS 12,494 ARS 37
10Y P/E Exit 4,811 ARS 8,344 ARS 13,129 ARS 35
Earnings-Based
Graham-Dodd 2,941 ARS 11,742 ARS 15,958 ARS 54
Lynch FV 2,915 ARS 4,165 ARS 5,414 ARS 50
PEG = 1.0 2,915 ARS 4,165 ARS 5,414 ARS 46
EPV 4,569 ARS 5,312 ARS 5,972 ARS 59
Dividend Discount
Gordon GGM 3,513 ARS 7,672 ARS 12,910 ARS 70
DDM Multi-Stage 3,513 ARS 6,285 ARS 7,996 ARS 61
Multiples
P/E Multiple 6,488 ARS 8,651 ARS 10,814 ARS 63
P/S Multiple 5,189 ARS 6,920 ARS 8,651 ARS 58
P/B Multiple 2,659 ARS 3,544 ARS 4,432 ARS 55
EV/EBIT 7,555 ARS 9,955 ARS 12,354 ARS 53
EV/EBITDA 6,217 ARS 8,173 ARS 10,126 ARS 54
EV/Revenue 5,201 ARS 7,276 ARS 9,354 ARS 43
Asset-Based
NCAV (Graham) 592.10 ARS 791.37 ARS 1,181 ARS 50
Growth DCF
Growth DCF 3,669 ARS 6,046 ARS 10,171 ARS 80
Rev-Margin DCF 4,626 ARS 7,862 ARS 11,839 ARS 74
Economic Profit
Residual Income 2,630 ARS 3,091 ARS 11,680 ARS 76
ROIC Compounder 4,888 ARS 6,095 ARS 7,478 ARS 72
Growth Earnings
Growth-Adj P/E 4,987 ARS 7,128 ARS 9,266 ARS 68

Widest divergence: DCF Models (7,777 ARS) versus Asset-Based (791.37 ARS). Highest evidence: Growth DCF (80).

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 Jul 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 69/100

Of which business quality 65 · Market factors (momentum, volatility) 62

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 66
Calm price path (market factor)
Momentum 54
Price trend over the last 3–12 months (market factor)
52W Momentum 73
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)
+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 40% 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 · 519 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 −40% · Above median
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× · Lower 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 18

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 Jul 21, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$675.50 HK$391.44 -42%
ABB Ltd ABBN CHF 83.82 CHF 35.46 -58%
Delta Electronics (Thailand) Public Company TDED 12.39 SGD 1.48 SGD -88%
LG Energy Solution, Ltd 373220 334,000 KRW 201,455 KRW -40%
Sungrow Power Supply Co 300274 ¥114.79 ¥123.83 +8%
Shenzhen Inovance Technology Co 300124 ¥63.43 ¥33.04 -48%
HD Hyundai Electric Co 267260 823,000 KRW 371,133 KRW -55%
LS ELECTRIC Co 010120 190,000 KRW 31,517 KRW -83%
Sieyuan Electric Co 002028 ¥151.73 ¥71.69 -53%
Hyosung Heavy Industries Corporation 298040 2,789,000 KRW 1,065,378 KRW -62%

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Frequently asked questions

Is WEG S.A (WEGE3) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of 7,948 ARS versus a price of 13,210 ARS, about −40% (overvalued).
What is the fair value of WEGE3?
Our model-based fair value for WEG S.A is 7,948 ARS (as of Jul 21, 2026), built from audited fundamentals. The current price is 13,210 ARS.
What is the quality score of WEGE3?
WEG S.A has a Quality Score of 69/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals 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 Jul 21, 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 Jul 21, 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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