WLK Valuation

Westlake Corp

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86.180

-1.05(-1.204%)1D

Overview
Forecast
Valuation
Earnings

WLK Relative Valuation

WLK'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, WLK is overvalued; if below, it's undervalued.

Historical Valuation

Westlake Corp (WLK) is now in the Overvalued zone, suggesting that its current forward PE ratio of 50.98 is considered Overvalued compared with the five-year average of 14.49. The fair price of Westlake Corp (WLK) is between 19.57 to 42.88 according to relative valuation methord. Compared to the current price of 87.23 USD , Westlake Corp is Overvalued By 103.44%.

Relative Value

Fair Zone

19.57-42.88

Current Price：87.23

103.44%

Overvalued

49.08

Trailing

Forward

9.89

EV/EBITDA

Westlake Corp. (WLK) has a current EV/EBITDA of 9.89. The 5-year average EV/EBITDA is 6.58. The thresholds are as follows: Strongly Undervalued below 3.08, Undervalued between 3.08 and 4.83, Fairly Valued between 8.33 and 4.83, Overvalued between 8.33 and 10.08, and Strongly Overvalued above 10.08. The current Forward EV/EBITDA of 9.89 falls within the Overvalued range.

39.37

EV/EBIT

Westlake Corp. (WLK) has a current EV/EBIT of 39.37. The 5-year average EV/EBIT is 12.40. The thresholds are as follows: Strongly Undervalued below -1.31, Undervalued between -1.31 and 5.55, Fairly Valued between 19.26 and 5.55, Overvalued between 19.26 and 26.11, and Strongly Overvalued above 26.11. The current Forward EV/EBIT of 39.37 falls within the Strongly Overvalued range.

0.98

Westlake Corp. (WLK) has a current PS of 0.98. The 5-year average PS is 1.12. The thresholds are as follows: Strongly Undervalued below 0.69, Undervalued between 0.69 and 0.91, Fairly Valued between 1.34 and 0.91, Overvalued between 1.34 and 1.56, and Strongly Overvalued above 1.56. The current Forward PS of 0.98 falls within the Historic Trend Line -Fairly Valued range.

9.97

P/OCF

Westlake Corp. (WLK) has a current P/OCF of 9.97. The 5-year average P/OCF is 6.68. The thresholds are as follows: Strongly Undervalued below 2.59, Undervalued between 2.59 and 4.63, Fairly Valued between 8.73 and 4.63, Overvalued between 8.73 and 10.77, and Strongly Overvalued above 10.77. The current Forward P/OCF of 9.97 falls within the Overvalued range.

32.43

P/FCF

Westlake Corp. (WLK) has a current P/FCF of 32.43. The 5-year average P/FCF is 12.71. The thresholds are as follows: Strongly Undervalued below -0.59, Undervalued between -0.59 and 6.06, Fairly Valued between 19.36 and 6.06, Overvalued between 19.36 and 26.00, and Strongly Overvalued above 26.00. The current Forward P/FCF of 32.43 falls within the Strongly Overvalued range.

Westlake Corp (WLK) has a current Price-to-Book (P/B) ratio of 1.13. Compared to its 3-year average P/B ratio of 1.49 , the current P/B ratio is approximately -23.93% higher. Relative to its 5-year average P/B ratio of 1.57, the current P/B ratio is about -28.21% higher. Westlake Corp (WLK) has a Forward Free Cash Flow (FCF) yield of approximately -0.46%. Compared to its 3-year average FCF yield of 8.18%, the current FCF yield is approximately -105.68% lower. Relative to its 5-year average FCF yield of 9.16% , the current FCF yield is about -105.08% lower.

1.09

P/B

Median3y

1.49

Median5y

1.57

-0.46

FCF Yield

Median3y

8.18

Median5y

9.16

Competitors Valuation Multiple

The average P/S ratio for WLK's competitors is 1.08, providing a benchmark for relative valuation. Westlake Corp Corp (WLK) exhibits a P/S ratio of 0.98, which is -9.17% above the industry average. Given its robust revenue growth of -7.92%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of WLK decreased by 40.75% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -79.15 to -167.22.

The secondary factor is the Revenue Growth, contributed -7.92%to the performance.

Overall, the performance of WLK in the past 1 year is driven by P/E Change. Which is more unsustainable.

-7.92%

3.21B → 2.95B

Revenue Growth

-144.09%

10.07 → -4.44

Margin Expansion

111.26%

-79.15 → -167.22

P/E Change

-40.75%