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 40th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 28.5%. 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 7%; for context, that number is higher than only 6.74% of tickers in our DCF set.
As a business, Westlake Chemical Corp experienced a tax rate of about 5% over the past twelve months; relative to its sector (Basic Materials), this tax rate is higher than merely 24.3% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SHW, RPM, RGLD, TREC, and UFS can be thought of as valuation peers to WLK, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
Royal® Building Products, a Westlake company, today announced an expansion of its virtual selling capabilities through a partnership with One Click Contractor throughout Canada. The partnership will support the virtual sales process as the company shifts into the peak sales season for exterior building products.