WLK
Westlake Corporation
$77.05
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 32.2% below fair value
You pay
$77.05
Bear
$90.90
Fair
$113.62
Bull
$136.35
Bear
$90.90
+18.0%
$6.97 × 13x P/E
Fair
$113.62
+47.5%
$6.97 × 16x P/E
Bull
$136.35
+77.0%
$6.97 × 19x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
11.1x
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 $115.33 from 32 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $113.62 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