Latest Ratios: P/E Ratio 14.9x · EV/EBITDA 11.2x · ROE 31.0%. (2008–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $17.6B | $15.9B | $14.7B | $11.2B | $10.6B | $9.2B | $6.0B | $8.2B | $6.1B | $8.1B | $9.3B |
| Enterprise Value | $25.8B | $24.0B | $21.7B | $18.9B | $17.2B | $15.9B | $13.5B | $16.1B | $11.2B | $11.5B | $12.0B |
| P/E Ratio → | 14.93 | 13.17 | 9.56 | 11.25 | 8.95 | 10.22 | 11.71 | 11.72 | 16.41 | 21.60 | 27.68 |
| P/S Ratio | 4.59 | 4.14 | 4.08 | 3.62 | 3.27 | 3.19 | 2.17 | 2.98 | 3.05 | 3.62 | 5.14 |
| P/B Ratio | 4.33 | 3.82 | 4.35 | 3.71 | 3.42 | 2.96 | 2.08 | 2.45 | 1.24 | 2.06 | 2.26 |
| P/FCF | 12.04 | 10.85 | 11.53 | 12.32 | 8.76 | 6.31 | 4.95 | 60.52 | — | 36.58 | 21.41 |
| P/OCF | 8.05 | 7.25 | 6.97 | 6.82 | 6.25 | 5.19 | 3.67 | 6.18 | 5.97 | 9.07 | 10.15 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.25 | 6.03 | 6.10 | 5.28 | 5.54 | 4.86 | 5.84 | 5.64 | 5.14 | 6.67 |
| EV / EBITDA | 11.21 | 10.45 | 8.30 | 9.56 | 7.92 | 8.44 | 9.83 | 9.36 | 11.06 | 11.60 | 12.31 |
| EV / EBIT | 16.24 | 15.08 | 10.90 | 13.64 | 10.89 | 12.27 | 15.14 | 14.43 | 12.98 | 14.22 | 16.84 |
| EV / FCF | — | 16.39 | 17.06 | 20.74 | 14.15 | 10.96 | 11.07 | 118.66 | — | 51.93 | 27.78 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 68.5% | 68.5% | 77.2% | 75.4% | 69.1% | 69.6% | 75.5% | 66.2% | 61.3% | 46.6% | 57.5% |
| Operating Margin | 41.3% | 41.3% | 54.7% | 44.4% | 48.8% | 46.4% | 31.7% | 44.8% | 31.4% | 31.3% | 39.0% |
| Net Profit Margin | 30.4% | 30.4% | 43.6% | 32.9% | 37.4% | 31.8% | 19.0% | 25.4% | 18.6% | 16.8% | 19.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 31.0% | 31.0% | 49.1% | 33.3% | 39.2% | 30.6% | 16.9% | 16.9% | 8.4% | 9.4% | 8.6% |
| ROA | 8.3% | 8.3% | 12.3% | 8.6% | 10.8% | 7.9% | 4.4% | 6.5% | 4.3% | 4.8% | 4.8% |
| ROIC | 10.5% | 10.5% | 14.0% | 10.2% | 12.2% | 9.9% | 6.1% | 8.7% | 5.4% | 7.4% | 7.9% |
| ROCE | 12.6% | 12.6% | 17.4% | 12.8% | 15.5% | 12.7% | 7.7% | 12.0% | 7.7% | 9.4% | 10.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.14 | 2.14 | 2.41 | 2.63 | 2.20 | 2.25 | 2.73 | 2.38 | 1.07 | 0.89 | 0.76 |
| Debt / EBITDA | 3.89 | 3.89 | 3.11 | 4.02 | 3.15 | 3.68 | 5.76 | 4.64 | 5.17 | 3.51 | 3.19 |
| Net Debt / Equity | — | 1.95 | 2.09 | 2.54 | 2.10 | 2.18 | 2.57 | 2.35 | 1.05 | 0.87 | 0.67 |
| Net Debt / EBITDA | 3.53 | 3.53 | 2.69 | 3.88 | 3.01 | 3.58 | 5.44 | 4.59 | 5.08 | 3.43 | 2.82 |
| Debt / FCF | — | 5.54 | 5.53 | 8.42 | 5.39 | 4.65 | 6.12 | 58.14 | — | 15.35 | 6.37 |
| Interest Coverage | 4.08 | 4.08 | 5.46 | 4.13 | 4.90 | 3.57 | 2.34 | 3.67 | 4.70 | 5.61 | 6.13 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.34 | 1.34 | 1.09 | 0.76 | 1.00 | 0.60 | 0.98 | 0.83 | 0.63 | 0.60 | 1.89 |
| Quick Ratio | 1.33 | 1.33 | 1.09 | 0.76 | 0.99 | 0.60 | 0.98 | 0.78 | 0.61 | 0.58 | 1.87 |
| Cash Ratio | 0.66 | 0.66 | 0.64 | 0.21 | 0.32 | 0.18 | 0.46 | 0.21 | 0.17 | 0.19 | 1.14 |
| Asset Turnover | — | 0.26 | 0.27 | 0.25 | 0.29 | 0.26 | 0.23 | 0.22 | 0.22 | 0.28 | 0.23 |
| Inventory Turnover | 94.44 | 94.44 | 327.24 | 299.28 | 264.23 | 259.32 | 770.04 | 38.09 | 70.80 | 111.19 | 107.65 |
| Days Sales Outstanding | — | 74.91 | 73.04 | 80.05 | 66.26 | 59.26 | 62.03 | 36.20 | 43.21 | 26.28 | 45.82 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 7.9% | 9.0% | 8.7% | 10.2% | 6.9% | 5.8% | 12.8% | 11.8% | 8.3% | 5.4% | 4.0% |
| Payout Ratio | 122.4% | 122.4% | 80.8% | 111.7% | 60.5% | 58.3% | 146.4% | 139.0% | 136.0% | 117.4% | 108.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.7% | 7.6% | 10.5% | 8.9% | 11.2% | 9.8% | 8.5% | 8.5% | 6.1% | 4.6% | 3.6% |
| FCF Yield | 8.3% | 9.2% | 8.7% | 8.1% | 11.4% | 15.8% | 20.2% | 1.7% | — | 2.7% | 4.7% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 1.2% | 4.6% | 2.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.3% |
| Total Shareholder Yield | 7.9% | 9.0% | 8.7% | 11.4% | 11.5% | 8.2% | 12.8% | 11.8% | 8.3% | 5.4% | 4.3% |
| Shares Outstanding | — | $402M | $382M | $384M | $396M | $412M | $436M | $416M | $219M | $219M | $219M |
Producer volume concentration risk
Based on current market data, WES trades at a forward P/E of 12.44 and an EV/EBITDA of 9.52, suggesting that investors are applying a persistent discount relative to broader midstream peers due to the perceived risks associated with its concentrated relationship with Occidental Petroleum.
The current PEG ratio of 0.70 indicates that the market may be underestimating the partnership's growth potential relative to its current valuation multiples. While the 8.3% dividend yield is attractive, it appears to be a market-driven response to the perceived risk of the OXY-centric business model rather than a reflection of fundamental instability.
As reported in recent financial statements, WES has maintained a relatively modest ROIC, fluctuating between 1.9% and 4.8% over the last ten quarters, which highlights the significant capital intensity required to maintain and expand its gathering and processing infrastructure in the Delaware and DJ Basins.
The disparity between the partnership's high gross margins and its lower ROIC suggests that heavy depreciation charges and ongoing maintenance capital expenditures are significant drags on overall capital efficiency. Investors should monitor whether management's shift toward a self-funding model can improve these returns by reducing the reliance on external capital to fund growth projects.
According to quarterly filings, the partnership's cash conversion cycle has shown significant volatility, ranging from -101 to 15 days, which reflects the complex timing of payments and receipts inherent in its fee-based service contracts and the impact of minimum volume commitment accounting adjustments.
The asset turnover ratio remains consistently low at approximately 0.07 to 0.08, which is typical for capital-intensive midstream assets but underscores the necessity of high throughput volumes to drive meaningful returns. The variability in the cash conversion cycle warrants further investigation into whether this is driven by operational inefficiencies or the specific payment terms negotiated with its primary producer, Occidental Petroleum.
Based on reported figures, the partnership has managed its debt-to-equity ratio within a range of 2.09 to 2.63 over the past ten quarters, indicating a disciplined approach to balance sheet management that prioritizes debt reduction while maintaining the flexibility to fund essential infrastructure maintenance and growth.
The interest coverage ratio, which has generally remained above 4.0x, suggests that the partnership is currently comfortable in its ability to service existing debt obligations. However, the sensitivity of this ratio to fluctuating EBITDA levels means that any significant decline in throughput volumes could rapidly compress this margin of safety, making it a critical metric for long-term monitoring.
As evidenced by the partnership's financial disclosures, the use of Net Income as a primary performance metric is frequently misapplied to this business model, as it fails to account for the substantial non-cash depreciation charges that characterize the midstream infrastructure sector.
Investors should instead focus on Distributable Cash Flow (DCF) and Free Cash Flow, as these metrics better reflect the actual cash-generating capacity of the assets after accounting for maintenance capital expenditures. Relying on Net Income or standard P/E ratios obscures the true economic reality of the partnership's ability to sustain its distribution policy and fund future growth.
Includes 30+ ratios · 18 years · Updated daily
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Quick answers to the most common questions about buying WES stock.
Western Midstream Partners, LP's current P/E ratio is 14.9x. The historical average is 26.9x. This places it at the 54th percentile of its historical range.
Western Midstream Partners, LP's current EV/EBITDA is 11.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.0x.
Western Midstream Partners, LP's return on equity (ROE) is 31.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 17.2%.
Based on historical data, Western Midstream Partners, LP is trading at a P/E of 14.9x. This is at the 54th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Western Midstream Partners, LP's current dividend yield is 7.94% with a payout ratio of 122.4%.
Western Midstream Partners, LP has 68.5% gross margin and 41.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Western Midstream Partners, LP's Debt/EBITDA ratio is 3.9x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.