Westlake Chemical Valuation
| WLK Stock | USD 115.84 1.24 1.06% |
At this time, the company appears to be fairly valued. Westlake Chemical maintains a prevalent Real Value of $119.79 per share. The last-minute price of the company is $115.84. Our model calculates the value of Westlake Chemical from examining the company fundamentals such as Return On Asset of 0.0246, current valuation of 17.48 B, and Profit Margin of 0.01 % as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Westlake Chemical's valuation include:
Price Book 1.4112 | Enterprise Value | Enterprise Value Ebitda 11.203 | Price Sales 1.2428 | Forward PE 16.1812 |
Fairly Valued
Today
Please note that Westlake Chemical's price fluctuation is very steady at this time. Calculation of the real value of Westlake Chemical is based on 3 months time horizon. Increasing Westlake Chemical's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Westlake Chemical's intrinsic value may or may not be the same as its current market price of 115.84, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 115.84 | Real 119.79 | Target 148.07 | Hype 116.02 | Naive 114.73 |
The intrinsic value of Westlake Chemical's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Westlake Chemical's stock price.
Estimating the potential upside or downside of Westlake Chemical helps investors to forecast how Westlake stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Westlake Chemical more accurately as focusing exclusively on Westlake Chemical's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Westlake Chemical's intrinsic value based on its ongoing forecasts of Westlake Chemical's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Westlake Chemical's closest peers.
Westlake Chemical Cash |
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Westlake Valuation Trend
Knowing Westlake Chemical's actual value is paramount for traders when making sound investment determinations. Using both Westlake Chemical's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Westlake Revenue by Product
Westlake Chemical Total Value Analysis
Westlake Chemical is at this time expected to have company total value of 17.48 B with market capitalization of 15.07 B, debt of 5.52 B, and cash on hands of 2.23 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Westlake Chemical fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
17.48 B | 15.07 B | 5.52 B | 2.23 B |
Westlake Chemical Investor Information
About 73.0% of the company outstanding shares are owned by insiders. The company has Price to Book (P/B) ratio of 1.41. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. Westlake Chemical has Price/Earnings To Growth (PEG) ratio of 1.59. The entity last dividend was issued on the 26th of November 2024. The firm had 2:1 split on the 19th of March 2014. Westlake Chemical may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.088 | 0.0523 |
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| Total Cash From Operating Activities | 2.8 B | 2.7 B |
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| Operating Income | 737.9 M | 838.4 M |
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Westlake Chemical Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Westlake Chemical has an asset utilization ratio of 59.65 percent. This suggests that the Company is making $0.6 for each dollar of assets. An increasing asset utilization means that Westlake Chemical is more efficient with each dollar of assets it utilizes for everyday operations.Westlake Chemical Ownership Allocation
Westlake Chemical retains a total of 128.71 Million outstanding shares. Westlake Chemical maintains majority of its outstanding shares owned by insiders. An insider is usually defined as a corporate executive, director, member of the board or institutional investor who own at least 10% of the company's outstanding shares. 73.35 (%) of Westlake Chemical outstanding shares that are owned by insiders attests that they have been buying or selling the stock in recent months in anticipation of some upcoming event. Also note that almost sixty-four thousand three hundred fifty-three invesors are currently shorting Westlake Chemical expressing very little confidence in its future performance.Westlake Chemical Profitability Analysis
The company reported the last year's revenue of 12.55 B. Total Income to common stockholders was 522 M with profit before taxes, overhead, and interest of 1.83 B.Westlake Chemical Past Distributions to stockholders
About Westlake Chemical Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Westlake Chemical. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Westlake Chemical based exclusively on its fundamental and basic technical indicators. By analyzing Westlake Chemical's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Westlake Chemical's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Westlake Chemical. We calculate exposure to Westlake Chemical's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Westlake Chemical's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.6 B | 2.7 B | |
| Pretax Profit Margin | 0.05 | 0.08 | |
| Operating Profit Margin | 0.05 | 0.09 | |
| Net Profit Margin | 0.03 | 0.06 | |
| Gross Profit Margin | 0.16 | 0.14 |
Westlake Chemical Quarterly Retained Earnings |
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A single share of Westlake Chemical represents a small ownership stake in the entity. As a stockholder of Westlake, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Westlake Chemical Dividends Analysis For Valuation
Dividend Payout Ratio is expected to rise to 0.44 this year, although the value of Dividends Paid is projected to rise to (241.4 M). . At this time, Westlake Chemical's Retained Earnings are quite stable compared to the past year. Retained Earnings Total Equity is expected to rise to about 11.9 B this year, although the value of Earnings Yield will most likely fall to 0.02.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -254.2 M | -241.4 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.42 | 0.44 | |
| Dividend Paid And Capex Coverage Ratio | 1.68 | 1.42 |
There are various types of dividends Westlake Chemical can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Westlake shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Westlake Chemical directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Westlake pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Westlake Chemical by the value of the dividends paid out.
Westlake Chemical Growth Indicators
Investing in growth stocks can be very risky. If the company such as Westlake Chemical does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 128.6 M | |
| Quarterly Earnings Growth Y O Y | -0.623 | |
| Forward Price Earnings | 16.1812 |
Westlake Chemical Current Valuation Indicators
Westlake Chemical's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Westlake Chemical's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Westlake Chemical, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Westlake Chemical's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Westlake Chemical's worth.When determining whether Westlake Chemical is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Westlake Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Westlake Chemical Stock. Highlighted below are key reports to facilitate an investment decision about Westlake Chemical Stock: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Westlake Chemical. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis. For more information on how to buy Westlake Stock please use our How to buy in Westlake Stock guide.You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Is Commodity Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Westlake Chemical. If investors know Westlake will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Westlake Chemical listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.62) | Dividend Share 2.05 | Earnings Share 0.72 | Revenue Per Share | Quarterly Revenue Growth 0.001 |
The market value of Westlake Chemical is measured differently than its book value, which is the value of Westlake that is recorded on the company's balance sheet. Investors also form their own opinion of Westlake Chemical's value that differs from its market value or its book value, called intrinsic value, which is Westlake Chemical's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Westlake Chemical's market value can be influenced by many factors that don't directly affect Westlake Chemical's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Westlake Chemical's value and its price as these two are different measures arrived at by different means. Investors typically determine if Westlake Chemical is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Westlake Chemical's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.