WLK
Westlake Corporation
$88.60
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 22.7% below fair value
You pay
$88.60
Bear
$91.66
Fair
$114.57
Bull
$137.49
Bear
$91.66
+3.4%
$6.97 × 13x P/E
Fair
$114.57
+29.3%
$6.97 × 16x P/E
Bull
$137.49
+55.2%
$6.97 × 19x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
12.7x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $118.50 from 32 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $114.57 per share.
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