Western Midstream Partners, LP logo WES - Western Midstream Partners, LP

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY 0
BUY 4
HOLD 8
SELL 1
STRONG
SELL 0
| PRICE TARGET: $47.80 DETAILS
HIGH: $51.00
LOW: $43.00
MEDIAN: $48.00
CONSENSUS: $47.80
UPSIDE: 0.70%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 80% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Fair Value Mild
Trading 6.8% below fair value
Current Price $47.47
Bear Case $40.75 14.2% downside ($40.75 - $47.47) / $47.47 = -14.2% $3.22 × 13x P/E
Fair Value $50.94 7.3% upside ($50.94 - $47.47) / $47.47 = 7.3% $3.22 × 16x P/E
Bull Case $61.12 28.8% upside ($61.12 - $47.47) / $47.47 = 28.8% $3.22 × 19x P/E

Adjust Assumptions

16.1x
3.22$

Key Value Driver

Normalized P/E multiple (16x base case)

Implied Market Multiple 14.7x

Plain-Language 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 $47.80 from 13 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $50.94 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