WES
Western Midstream Partners, LP
$44.62
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 7.4% below fair value
You pay
$44.62
Bear
$38.57
Fair
$48.21
Bull
$57.85
Bear
$38.57
-13.6%
$3.00 × 13x P/E
Fair
$48.21
+8.0%
$3.00 × 16x P/E
Bull
$57.85
+29.7%
$3.00 × 19x P/E
Adjust Assumptions
16.1x
3.0$
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
14.9x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (13 analysts)
$49.71
Divergence from AlphaVal
3%
Summary
Applying a 16x P/E to adjusted EPS of $3.00, the base-case value is $48.21 per share.
Warnings
The company pays out 123% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples