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WLK: Future Returns Will Reflect Buyback Completion And Recent Index Removal

WLK: Share Buyback And Dividend Distribution Will Support Upward Momentum

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WLK
AnalystConsensusTarget
Not Invested
Published 08 Aug 2024

Update shared on 12 Dec 2025

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Narrative Update on Westlake

Analysts have increased their price target on Westlake to approximately 81.29 dollars per share from 81.29 dollars previously, a marginal upward revision reflecting slightly lower discount rate assumptions and modestly improved long term valuation metrics.

What's in the News

  • Recorded a significant unaudited goodwill impairment of approximately 727 million dollars for the third quarter ended September 30, 2025, signaling a downward reassessment of certain acquired assets (Key Developments)
  • Completed its long running share repurchase program announced in 2014, having bought back a total of 9,482,402 shares, or about 7.31 percent of shares outstanding, for 662.35 million dollars, with no additional shares repurchased in the latest quarter (Key Developments)
  • Was removed from the FTSE All World Index, potentially affecting index linked ownership and passive fund flows (Key Developments)
  • Expanded its Magnolia Collection window line with a new black frame option across multiple series, targeting growing demand for darker, energy efficient window styles in residential construction (Key Developments)

Valuation Changes

  • Fair Value: unchanged at approximately 81.29 dollars per share, indicating a stable intrinsic value estimate.
  • Discount Rate: fallen slightly from about 8.65 percent to 8.45 percent, modestly lowering the implied cost of capital.
  • Revenue Growth: effectively unchanged, remaining around 4.22 percent, suggesting a stable long term growth outlook.
  • Net Profit Margin: effectively unchanged at roughly 5.86 percent, reflecting a consistent long term profitability assumption.
  • Future P/E: fallen slightly from about 17.54x to 17.44x, implying a marginally lower valuation multiple on forward earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.