Western Midstream Partners, LP (WES) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+57.2%

$70.09

vs $44.58 price

Levered DCF

$67.85

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.53

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	13.12×	9.51×	11.21×	8.92×	10.22×	11.71×	11.72×	16.41×
P/B	3.93×	4.52×	3.87×	3.57×	3.1×	2.18×	2.56×	2.59×
P/S	4.12×	4.05×	3.61×	3.26×	3.18×	2.17×	2.98×	3.05×
EV / EBITDA	10.39×	8.19×	9.5×	7.94×	8.6×	9.76×	10.06×	8.95×
Gross margin	68.5%	77.2%	75.4%	69.1%	69.6%	75.5%	66.2%	61.3%
Operating margin	41.3%	54.7%	44.4%	48.8%	46.4%	31.7%	44.8%	31.4%
Net margin	30.4%	43.6%	32.9%	37.4%	31.8%	19.0%	25.4%	18.6%
Current ratio	1.34×	1.09×	0.76×	1×	0.6×	0.98×	0.83×	0.63×
Debt / equity	2.22×	2.52×	2.75×	2.3×	2.35×	2.86×	2.49×	2.24×
Interest coverage	4.06×	5.4×	4.11×	4.94×	3.67×	2.31×	4.06×	3.4×
Dividend yield	9.0%	8.7%	10.2%	6.9%	5.8%	12.8%	11.8%	8.3%
Payout ratio	122.4%	80.8%	111.7%	60.5%	58.3%	146.4%	139.0%	136.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	29.1%	48.6%	35.3%	41.0%	31.0%	19.1%	21.8%	15.8%
Return on invested capital	11.0%	15.6%	11.6%	14.9%	12.5%	7.7%	10.2%	5.7%
Return on assets	7.8%	12.0%	8.2%	10.8%	8.1%	4.5%	5.6%	4.0%
Free cash flow yield	9.3%	8.7%	8.1%	11.4%	15.9%	20.2%	1.7%	-2.9%
Earnings yield	7.4%	10.8%	9.1%	11.5%	10.0%	8.8%	8.5%	6.1%
Enterprise value	$23.9B	$21.7B	$18.9B	$17.1B	$15.9B	$13.5B	$16.1B	$11.2B
Net debt / EBITDA	3.52×	2.67×	3.87×	3.03×	3.65×	5.4×	4.93×	4.11×
Cash conversion cycle (days)	-17	-65	-92	-64	-76	-51	-70	-162