WES Relative Valuation
WES's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, WES is overvalued; if below, it's undervalued.
Historical Valuation
Western Midstream Partners LP (WES) is now in the Fair zone, suggesting that its current forward PE ratio of 10.86 is considered Fairly compared with the five-year average of 9.30. The fair price of Western Midstream Partners LP (WES) is between 34.77 to 43.47 according to relative valuation methord.
Relative Value
Fair Zone
34.77-43.47
Current Price：40.30
Fair
10.86
PE
1Y
3Y
5Y
Trailing
Forward
8.33
EV/EBITDA
Western Midstream Partners LP. (WES) has a current EV/EBITDA of 8.33. The 5-year average EV/EBITDA is 8.24. The thresholds are as follows: Strongly Undervalued below 7.10, Undervalued between 7.10 and 7.67, Fairly Valued between 8.81 and 7.67, Overvalued between 8.81 and 9.38, and Strongly Overvalued above 9.38. The current Forward EV/EBITDA of 8.33 falls within the Historic Trend Line -Fairly Valued range.
11.51
EV/EBIT
Western Midstream Partners LP. (WES) has a current EV/EBIT of 11.51. The 5-year average EV/EBIT is 11.31. The thresholds are as follows: Strongly Undervalued below 9.56, Undervalued between 9.56 and 10.44, Fairly Valued between 12.19 and 10.44, Overvalued between 12.19 and 13.07, and Strongly Overvalued above 13.07. The current Forward EV/EBIT of 11.51 falls within the Historic Trend Line -Fairly Valued range.
3.70
PS
Western Midstream Partners LP. (WES) has a current PS of 3.70. The 5-year average PS is 3.28. The thresholds are as follows: Strongly Undervalued below 2.37, Undervalued between 2.37 and 2.83, Fairly Valued between 3.73 and 2.83, Overvalued between 3.73 and 4.18, and Strongly Overvalued above 4.18. The current Forward PS of 3.70 falls within the Historic Trend Line -Fairly Valued range.
6.47
P/OCF
Western Midstream Partners LP. (WES) has a current P/OCF of 6.47. The 5-year average P/OCF is 6.14. The thresholds are as follows: Strongly Undervalued below 4.35, Undervalued between 4.35 and 5.25, Fairly Valued between 7.04 and 5.25, Overvalued between 7.04 and 7.94, and Strongly Overvalued above 7.94. The current Forward P/OCF of 6.47 falls within the Historic Trend Line -Fairly Valued range.
12.98
P/FCF
Western Midstream Partners LP. (WES) has a current P/FCF of 12.98. The 5-year average P/FCF is 9.53. The thresholds are as follows: Strongly Undervalued below 5.49, Undervalued between 5.49 and 7.51, Fairly Valued between 11.55 and 7.51, Overvalued between 11.55 and 13.57, and Strongly Overvalued above 13.57. The current Forward P/FCF of 12.98 falls within the Overvalued range.
Western Midstream Partners LP (WES) has a current Price-to-Book (P/B) ratio of 4.84. Compared to its 3-year average P/B ratio of 4.17 , the current P/B ratio is approximately 16.04% higher. Relative to its 5-year average P/B ratio of 3.73, the current P/B ratio is about 29.78% higher. Western Midstream Partners LP (WES) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 9.40%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 11.17% , the current FCF yield is about -100.00% lower.
4.84
P/B
Median3y
4.17
Median5y
3.73
9.21
FCF Yield
Median3y
9.40
Median5y
11.17
Competitors Valuation Multiple
The average P/S ratio for WES's competitors is , providing a benchmark for relative valuation. Western Midstream Partners LP Corp (WES) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 7.82%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of WES increased by 9.82% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 33.50 to 36.63.
The secondary factor is the Revenue Growth, contributed 7.82%to the performance.
Overall, the performance of WES in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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