WLK
Westlake Corporation
$63.61
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 34.0% below fair value
You pay
$63.61
Bear
$77.11
Fair
$96.39
Bull
$115.67
Bear
$77.11
+21.2%
$5.95 × 13x P/E
Fair
$96.39
+51.5%
$5.95 × 16x P/E
Bull
$115.67
+81.8%
$5.95 × 19x P/E
Adjust Assumptions
16.2x
5.95$
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
10.7x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (32 analysts)
$84.89
Divergence from AlphaVal
14%
Summary
Applying a 16x P/E to adjusted EPS of $5.95, the base-case value is $96.39 per share.
Warnings
This stock is 49% below its 52-week high, with weak or declining earnings. That combination often signals real trouble, even though the valuation below is based on other fundamentals.
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