Westlake Chemical Partners LP (WLKP) 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

+96.0%

$42.29

vs $21.58 price

Levered DCF

$142.39

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

3.11

Safe zone

Rating

B+

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	13.77×	13.07×	14.06×	12.91×	11.48×	12.68×	14.93×	15.77×
P/B	1.34×	1.57×	1.46×	1.55×	1.76×	1.61×	1.75×	0.83×
P/S	0.57×	0.72×	0.64×	0.52×	0.78×	0.87×	0.83×	0.61×
EV / EBITDA	2.28×	2.28×	2.34×	2.47×	2.56×	2.67×	2.8×	2.68×
Gross margin	29.8%	36.9%	32.5%	23.7%	36.4%	39.2%	34.8%	29.3%
Operating margin	27.4%	34.4%	30.0%	21.8%	33.8%	36.5%	32.1%	27.2%
Net margin	4.2%	5.5%	4.6%	4.0%	6.8%	6.8%	5.6%	3.8%
Current ratio	2.8×	4.35×	4.02×	3.67×	2.63×	6.62×	6.14×	5.07×
Debt / equity	0.8×	0.77×	0.76×	0.75×	0.74×	0.77×	0.77×	0.51×
Interest coverage	13.96×	15.19×	13.5×	25.93×	46.58×	29.32×	17.84×	16.31×
Dividend yield	9.9%	8.1%	8.7%	8.0%	7.0%	7.9%	6.8%	6.9%
Payout ratio	136.5%	106.5%	122.4%	103.5%	80.4%	100.3%	101.8%	108.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.7%	12.0%	10.4%	12.0%	15.4%	12.7%	11.7%	5.3%
Return on invested capital	26.5%	31.6%	28.3%	26.6%	29.9%	26.8%	25.8%	24.7%
Return on assets	3.9%	4.8%	4.1%	4.7%	5.6%	4.9%	4.4%	3.4%
Free cash flow yield	30.1%	53.5%	53.1%	49.5%	34.6%	40.1%	44.7%	50.9%
Earnings yield	7.3%	7.7%	7.1%	7.8%	8.7%	7.9%	6.7%	6.3%
Enterprise value	$1B	$1.2B	$1.1B	$1.2B	$1.3B	$1.2B	$1.3B	$1.2B
Net debt / EBITDA	0.79×	0.67×	0.72×	0.71×	0.74×	0.84×	0.82×	0.99×
Cash conversion cycle (days)	-2	49	38	12	59	81	62	52