Westlake Chemical Partners LP Common Units representing limited partner interests (WLKP) Company Bio
Westlake Chemical Partners LP produces and sell ethylene, ethylene co-products, including propylene, crude butadiene, pyrolysis gasoline, and hydrogen directly to third parties on either a spot or contract basis. The company was founded in 2014 and is based in Houston, Texas.
WLKP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Westlake Chemical Partners LP with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Westlake Chemical Partners LP ranked in the 83th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 573.83% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for WLKP, they are:
Westlake Chemical Partners LP's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 7.72% of tickers in our DCF set.
As a business, Westlake Chemical Partners LP experienced a tax rate of about 1% over the past twelve months; relative to its sector (Basic Materials), this tax rate is higher than just 19.43% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
NX, USCR, WOR, GMS, and GFI can be thought of as valuation peers to WLKP, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
The Board of Directors of Westlake Chemical Partners GP LLC, the general partner of Westlake Chemical Partners LP (the "Partnership") (NYSE:WLKP), has declared a distribution by the Partnership of $0.4714 per unit. This is the 26th consecutive quarterly distribution announced by the Partnership since its initial public offering. The distribution will be payable on February 19, 2021, to unit holders of record on February 4, 2021.
Introduction With interest rates near all-time lows, dividend investors have turned to MLPs in search of much-needed yield. MLPs have not been the average investor’s first choice because on average they generally employ high leverage, have complex tax situations, and utilize debt to fund distributions. However, WLKP has differentiated itself...
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