Westlake Chemical is a manufacturer and supplier of petrochemicals, polymers and building products used in a range of products including: ethylene, polyethylene, styrene, propylene, caustic, VCM, PVC suspension and specialty resins and PVC building products including pipe and specialty components, windows, fence, deck and film. The company was founded in 1985 and is based in Houston, Texas.
WLK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Westlake Chemical Corp. To summarize, we found that Westlake Chemical Corp ranked in the 56th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 86.33% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for WLK, they are:
Westlake Chemical Corp's weighted average cost of capital (WACC) is 6%; for context, that number is higher than merely 9.92% of tickers in our DCF set.
Relative to other stocks in its sector (Basic Materials), Westlake Chemical Corp has a reliance on debt greater than 59.71% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as WLK, try VMC, MLM, MTRN, CBT, and WOR.