Woolworths: Aussie Giant Overvalued

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About: Woolworths Group Limited ADR (WOLZY)
by: Michael Turner
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Michael Turner
Long/short equity, contrarian, event-driven, medium-term horizon
Summary

Woolworths Group Ltd's stock price has been in a strong uptrend since mid 2016 and is once again nearing record highs.

This has left Woolworths with a record high forward P/E ratio of over 23, despite stagnant/falling revenue over the past 5 years.

With competition in the sector increasing and the Australian economy worsening, Woolworths' extreme valuation looks vulnerable.

Note: This article refers to the ASX listed Woolworths Group Limited (OTCPK:WOLZY) (WOW.AX). All amounts listed are in AUD unless otherwise specified.

The Stock

Woolworths Group Ltd is an Australian conglomerate engaged in