Westlake Corporation (WLK) 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

+34.8%

$94.90

vs $70.38 price

Levered DCF

$87.27

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.72

Distress zone

Rating

C+

Overall 2 / 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	-6.3×	24.6×	37.62×	5.87×	6.2×	31.75×	21.52×	8.59×
P/B	1.08×	1.4×	1.75×	1.32×	1.56×	1.73×	1.54×	1.53×
P/S	0.85×	1.21×	1.43×	0.83×	1.06×	1.39×	1.11×	0.99×
EV / EBITDA	-51.23×	7.73×	10.25×	3.92×	4.38×	10.49×	8.6×	4.99×
Gross margin	2.6%	16.1%	17.7%	25.8%	29.7%	13.6%	15.5%	23.0%
Operating margin	-14.1%	7.2%	5.8%	19.3%	23.8%	5.7%	8.1%	16.3%
Net margin	-13.5%	5.0%	3.8%	14.2%	17.1%	4.4%	5.2%	11.5%
Current ratio	2.24×	2.8×	2.37×	2.6×	2.25×	2.56×	2.21×	2.4×
Debt / equity	0.73×	0.5×	0.54×	0.55×	0.71×	0.65×	0.65×	0.48×
Interest coverage	-9.8×	5.5×	4.42×	17.23×	15.91×	3.02×	5.29×	11.17×
Dividend yield	2.9%	1.8%	1.2%	1.3%	1.2%	1.3%	1.5%	1.4%
Payout ratio	-18.0%	43.9%	46.1%	7.5%	7.2%	41.5%	31.4%	12.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-17.2%	5.7%	4.7%	22.6%	25.3%	5.5%	7.2%	17.8%
Return on invested capital	-7.9%	3.3%	2.9%	12.9%	13.2%	3.4%	4.4%	10.5%
Return on assets	-7.6%	2.9%	2.3%	10.9%	10.9%	2.4%	3.2%	8.6%
Free cash flow yield	-5.6%	2.1%	7.3%	17.4%	14.0%	7.4%	5.7%	8.3%
Earnings yield	-15.8%	4.1%	2.7%	17.1%	16.2%	3.2%	4.7%	11.6%
Enterprise value	$13.2B	$17.1B	$20.1B	$16.4B	$16.2B	$13.1B	$12.1B	$10.5B
Net debt / EBITDA	-14.29×	1.07×	1.13×	0.78×	1.01×	2.12×	2.2×	0.91×
Cash conversion cycle (days)	80	77	74	72	82	81	73	72