Westlake Chemical Valuation
| WLK Stock | USD 148.94 0.35 0.24% |
At this time, the company appears to be overvalued. Westlake Chemical maintains a prevalent Real Value of $141.72 per share. The last-minute price of the company is $148.94. Our model calculates the value of Westlake Chemical from examining the company fundamentals such as Profit Margin of 0.04 %, current valuation of 22.51 B, and Return On Asset of 0.037 as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors encourage picking up undervalued securities and discarding overvalued securities since, at some point, asset prices and their ongoing real values will grow together. Key fundamental drivers impacting Westlake Chemical's valuation include:
Price Book 1.9257 | Enterprise Value 22.5 B | Enterprise Value Ebitda 11.1796 | Price Sales 1.5717 | Forward PE 20.4499 |
Overvalued
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.
Our valuation method for Westlake Chemical is useful when determining the fair value of the Westlake stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Westlake Chemical. Since Westlake Chemical is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Westlake Stock. However, Westlake Chemical's intrinsic value may or may not be the same as its current market price, 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 148.94 | Real 141.72 | Target 134.71 | Hype 150.17 |
The real value of Westlake Stock, also known as its intrinsic value, is the underlying worth of Westlake Chemical Company, which is reflected in its stock price. It is based on Westlake Chemical's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Westlake Chemical's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Westlake Chemical's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
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. When choosing an evaluation method for Westlake Chemical, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Westlake Chemical Investments |
|
Westlake Valuation Trend
Knowing Westlake Chemical's actual value is paramount for traders to make sound investment determinations. Westlake Chemical's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Westlake Chemical's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Westlake Chemical's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Westlake Market Cap
Westlake Chemical is rated third in market capitalization category among related companies. Market capitalization of Materials industry is at this time estimated at about 161.06 Billion. Westlake Chemical retains roughly 19.7 Billion in market capitalization claiming about 12% of all equities under Materials industry.Westlake Chemical Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Westlake Chemical's current stock value. Our valuation model uses many indicators to compare Westlake Chemical value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Westlake Chemical competition to find correlations between indicators driving Westlake Chemical's intrinsic value. More Info.Westlake Chemical is rated third in price to earning category among related companies. It is rated third in price to book category among related companies fabricating about 0.43 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Westlake Chemical is roughly 2.35 . The value of Price To Book Ratio is estimated to slide to 1.48. Comparative valuation analysis is a catch-all model that can be used if you cannot value Westlake Chemical by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Westlake Chemical's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Westlake Chemical's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Westlake Chemical's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Westlake Chemical and how it compares across the competition.
About Westlake Chemical Valuation
The stock valuation mechanism determines the current worth of Westlake Chemical on a weekly basis. We use both absolute as well as 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 its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Westlake Chemical's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. 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, relevant financial multiples and ratios, and then comparing them to Westlake Chemical's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.1 B | 1.1 B | |
| Pretax Profit Margin | 0.06 | 0.08 | |
| Operating Profit Margin | 0.1 | 0.1 | |
| Net Profit Margin | 0.04 | 0.06 | |
| Gross Profit Margin | 0.17 | 0.14 |
Westlake Chemical Quarterly Retained Earnings |
|
8 Steps to conduct Westlake Chemical's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Westlake Chemical's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Westlake Chemical's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Westlake Chemical's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Westlake Chemical's revenue streams: Identify Westlake Chemical's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Westlake Chemical's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Westlake Chemical's growth potential: Evaluate Westlake Chemical's management, business model, and growth potential.
- Determine Westlake Chemical's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Westlake Chemical's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
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 0.48 this year, although the value of Dividends Paid is projected to rise to (209.9 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 Price Earnings To Growth Ratio is projected to rise to (0.45).
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -221 M | -209.9 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.46 | 0.48 | |
| Dividend Paid And Capex Coverage Ratio | (2.87) | (3.02) |
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
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, 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 | -0.29 | |
| Forward Price Earnings | 20.4499 |
Westlake Chemical Current Valuation Indicators
Valuation refers to the process of determining the present value of Westlake Chemical and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Westlake we look at many different elements of the entity such as Westlake's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Westlake Chemical's valuation analysis is also 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 tightly coupled 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Complementary Tools for Westlake Stock analysis
When running Westlake Chemical's price analysis, check to measure Westlake Chemical's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Westlake Chemical is operating at the current time. Most of Westlake Chemical's value examination focuses on studying past and present price action to predict the probability of Westlake Chemical's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Westlake Chemical's price. Additionally, you may evaluate how the addition of Westlake Chemical to your portfolios can decrease your overall portfolio volatility.
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |
Is Westlake Chemical's industry 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 (0.29) | Dividend Share 1.714 | Earnings Share 3.69 | Revenue Per Share 98.18 | Quarterly Revenue Growth (0.14) |
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.