Westlake Corporation

NYSE:WLK Stock Report

Market Cap: US$16.3b

Westlake Valuation

Is WLK undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of WLK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WLK ($127.91) is trading below our estimate of fair value ($223.87)

Significantly Below Fair Value: WLK is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WLK?

Key metric: As WLK is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for WLK. This is calculated by dividing WLK's market cap by their current revenue.
What is WLK's PS Ratio?
PS Ratio1.4x
SalesUS$12.13b
Market CapUS$16.34b

Price to Sales Ratio vs Peers

How does WLK's PS Ratio compare to its peers?

The above table shows the PS ratio for WLK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.9x
LYB LyondellBasell Industries
0.7x-8.4%US$26.7b
DOW Dow
0.7x3.7%US$30.7b
CBT Cabot
1.5x4.0%US$5.9b
OLN Olin
0.7x5.5%US$4.8b
WLK Westlake
1.4x5.9%US$16.3b

Price-To-Sales vs Peers: WLK is expensive based on its Price-To-Sales Ratio (1.4x) compared to the peer average (0.9x).

Price to Sales Ratio vs Industry

How does WLK's PS Ratio compare vs other companies in the US Chemicals Industry?

10 CompaniesPrice / SalesEstimated GrowthMarket Cap
TSE Trinseo
0.03x5.0%US$117.53m
ALTO Alto Ingredients
0.1x3.1%US$106.54m
BON Bon Natural Life
0.2xn/aUS$5.36m
ABLT American Biltrite
0.02xn/aUS$2.91m
WLK 1.4xIndustry Avg. 1.4xNo. of Companies18PS01.22.43.64.86+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: WLK is good value based on its Price-To-Sales Ratio (1.4x) compared to the US Chemicals industry average (1.4x).

Price to Sales Ratio vs Fair Ratio

What is WLK's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WLK PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.4x
Fair PS Ratio1.1x

Price-To-Sales vs Fair Ratio: WLK is expensive based on its Price-To-Sales Ratio (1.4x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst WLK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$127.91
US$157.94
+23.5%
7.3%US$185.00US$135.00n/a16
Nov ’25US$132.14
US$164.44
+24.4%
7.7%US$185.00US$135.00n/a16
Oct ’25US$149.13
US$163.19
+9.4%
8.5%US$185.00US$135.00n/a16
Sep ’25US$145.44
US$161.62
+11.1%
8.7%US$185.00US$135.00n/a17
Aug ’25US$143.94
US$159.10
+10.5%
9.7%US$185.00US$123.00n/a16
Jul ’25US$143.32
US$160.98
+12.3%
9.8%US$185.00US$123.00n/a16
Jun ’25US$160.56
US$159.98
-0.4%
9.9%US$185.00US$123.00n/a16
May ’25US$149.18
US$154.04
+3.3%
10.8%US$185.00US$123.00n/a17
Apr ’25US$154.26
US$144.21
-6.5%
9.9%US$185.00US$123.00n/a17
Mar ’25US$137.38
US$142.98
+4.1%
9.8%US$185.00US$123.00n/a16
Feb ’25US$139.83
US$141.94
+1.5%
9.5%US$185.00US$123.00n/a16
Jan ’25US$139.96
US$137.94
-1.4%
10.2%US$175.00US$108.00n/a16
Dec ’24US$132.57
US$134.00
+1.1%
11.8%US$175.00US$108.00n/a15
Nov ’24US$116.20
US$134.67
+15.9%
11.9%US$175.00US$108.00US$132.1415
Oct ’24US$124.67
US$136.56
+9.5%
11.9%US$175.00US$108.00US$149.1316
Sep ’24US$132.70
US$137.29
+3.5%
11.7%US$175.00US$108.00US$145.4417
Aug ’24US$136.81
US$127.35
-6.9%
8.0%US$150.00US$108.00US$143.9417
Jul ’24US$119.47
US$124.78
+4.4%
8.2%US$138.00US$106.00US$143.3218
Jun ’24US$105.28
US$126.41
+20.1%
8.5%US$144.00US$107.00US$160.5617
May ’24US$113.37
US$123.75
+9.2%
7.9%US$140.00US$107.00US$149.1816
Apr ’24US$115.98
US$123.06
+6.1%
8.3%US$142.00US$103.00US$154.2616
Mar ’24US$121.70
US$119.76
-1.6%
10.3%US$142.00US$100.00US$137.3817
Feb ’24US$124.15
US$113.41
-8.6%
10.7%US$138.00US$94.00US$139.8317
Jan ’24US$102.54
US$110.18
+7.4%
11.4%US$138.00US$85.00US$139.9617
Dec ’23US$107.95
US$106.29
-1.5%
13.3%US$138.00US$80.00US$132.5717
Nov ’23US$98.10
US$106.29
+8.4%
15.4%US$138.00US$79.00US$116.2017

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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