Latest Ratios: P/E Ratio -6.5x · EV/EBITDA N/A · ROE -14.8%. (1999–2025 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 | $9.8B | $9.5B | $14.8B | $18.0B | $13.2B | $12.5B | $10.5B | $9.0B | $8.6B | $13.8B | $7.3B |
| Enterprise Value | $13.5B | $13.2B | $17.2B | $20.2B | $16.4B | $16.2B | $13.1B | $12.1B | $10.5B | $16.1B | $10.6B |
| P/E Ratio → | -6.50 | — | 24.71 | 37.83 | 5.91 | 6.23 | 31.75 | 21.58 | 8.64 | 10.65 | 18.30 |
| P/S Ratio | 0.87 | 0.85 | 1.22 | 1.43 | 0.84 | 1.06 | 1.39 | 1.11 | 1.00 | 1.72 | 1.43 |
| P/B Ratio | 1.06 | 1.03 | 1.34 | 1.67 | 1.26 | 1.47 | 1.59 | 1.41 | 1.42 | 2.57 | 1.87 |
| P/FCF | — | — | 48.41 | 13.82 | 5.78 | 7.20 | 13.54 | 17.57 | 12.17 | 14.36 | 35.44 |
| P/OCF | 21.01 | 20.50 | 11.27 | 7.70 | 3.89 | 5.22 | 8.06 | 6.94 | 6.10 | 8.97 | 8.73 |
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 | — | 1.19 | 1.41 | 1.61 | 1.04 | 1.38 | 1.74 | 1.49 | 1.22 | 2.00 | 2.10 |
| EV / EBITDA | — | — | 8.63 | 11.07 | 3.99 | 4.46 | 10.89 | 8.86 | 5.13 | 8.82 | 11.08 |
| EV / EBIT | — | — | 15.65 | 23.37 | 5.24 | 5.69 | 27.67 | 17.48 | 7.20 | 12.99 | 16.69 |
| EV / FCF | — | — | 56.11 | 15.52 | 7.16 | 9.35 | 16.95 | 23.60 | 14.87 | 16.76 | 51.84 |
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 | 2.6% | 2.6% | 16.1% | 17.7% | 25.8% | 29.7% | 13.6% | 15.5% | 23.0% | 21.9% | 19.4% |
| Operating Margin | -14.1% | -14.1% | 7.2% | 5.8% | 19.3% | 23.8% | 5.7% | 8.1% | 16.3% | 15.2% | 11.5% |
| Net Profit Margin | -13.5% | -13.5% | 5.0% | 3.8% | 14.2% | 17.1% | 4.4% | 5.2% | 11.5% | 16.2% | 7.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -14.8% | -14.8% | 5.5% | 4.5% | 23.7% | 26.7% | 5.1% | 6.7% | 17.4% | 28.2% | 10.7% |
| ROA | -7.4% | -7.4% | 2.9% | 2.3% | 11.5% | 12.5% | 2.4% | 3.4% | 8.4% | 11.4% | 4.8% |
| ROIC | -9.0% | -9.0% | 5.0% | 4.1% | 17.7% | 19.6% | 3.4% | 5.6% | 13.5% | 12.3% | 8.0% |
| ROCE | -8.8% | -8.8% | 4.8% | 4.0% | 17.7% | 19.6% | 3.5% | 5.8% | 13.7% | 12.4% | 7.9% |
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 | 0.69 | 0.69 | 0.48 | 0.51 | 0.51 | 0.66 | 0.60 | 0.60 | 0.44 | 0.71 | 0.98 |
| Debt / EBITDA | — | — | 2.65 | 3.02 | 1.31 | 1.55 | 3.29 | 2.79 | 1.30 | 2.10 | 3.98 |
| Net Debt / Equity | — | 0.40 | 0.21 | 0.21 | 0.30 | 0.44 | 0.40 | 0.48 | 0.32 | 0.43 | 0.87 |
| Net Debt / EBITDA | — | — | 1.18 | 1.21 | 0.77 | 1.03 | 2.19 | 2.26 | 0.93 | 1.26 | 3.51 |
| Debt / FCF | — | — | 7.70 | 1.70 | 1.38 | 2.15 | 3.41 | 6.03 | 2.71 | 2.40 | 16.40 |
| Interest Coverage | -8.92 | -8.92 | 6.90 | 5.24 | 17.64 | 16.21 | 3.33 | 5.60 | 11.59 | 7.80 | 8.03 |
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 | 2.24 | 2.24 | 2.80 | 2.37 | 2.60 | 2.25 | 2.56 | 2.21 | 2.40 | 1.76 | 2.04 |
| Quick Ratio | 1.65 | 1.65 | 2.04 | 1.79 | 1.79 | 1.65 | 1.89 | 1.46 | 1.55 | 1.30 | 1.36 |
| Cash Ratio | 1.06 | 1.06 | 1.32 | 1.18 | 0.97 | 0.81 | 0.97 | 0.59 | 0.64 | 0.78 | 0.39 |
| Asset Turnover | — | 0.56 | 0.59 | 0.60 | 0.77 | 0.64 | 0.54 | 0.61 | 0.74 | 0.67 | 0.47 |
| Inventory Turnover | 6.58 | 6.58 | 6.00 | 6.37 | 6.28 | 5.89 | 7.06 | 7.33 | 6.56 | 6.98 | 5.11 |
| Days Sales Outstanding | — | 49.15 | 44.58 | 46.57 | 41.62 | 57.89 | 59.05 | 46.58 | 43.83 | 45.44 | 67.50 |
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 | 2.8% | 2.9% | 1.8% | 1.2% | 1.3% | 1.2% | 1.3% | 1.5% | 1.4% | 0.7% | 1.3% |
| Payout Ratio | — | — | 43.9% | 46.1% | 7.5% | 7.2% | 41.5% | 31.4% | 12.0% | 7.9% | 24.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 4.0% | 2.6% | 16.9% | 16.0% | 3.1% | 4.6% | 11.6% | 9.4% | 5.5% |
| FCF Yield | — | — | 2.1% | 7.2% | 17.3% | 13.9% | 7.4% | 5.7% | 8.2% | 7.0% | 2.8% |
| Buyback Yield | 0.6% | 0.7% | 0.4% | 0.1% | 0.8% | 0.2% | 0.5% | 0.3% | 1.2% | 0.0% | 0.9% |
| Total Shareholder Yield | 3.4% | 3.5% | 2.2% | 1.4% | 2.0% | 1.4% | 1.8% | 1.8% | 2.6% | 0.7% | 2.3% |
| Shares Outstanding | — | $129M | $129M | $129M | $129M | $129M | $128M | $129M | $130M | $130M | $130M |
Cyclical housing demand sensitivity
Based on current market data, Westlake trades at a forward P/E of 20.22, which appears to price in a significant recovery that may be disconnected from the reality of its negative trailing earnings and the ongoing contraction in its core housing and infrastructure end-markets.
The discrepancy between the negative TTM P/E and the elevated forward multiple suggests that investors are banking on a rapid cyclical rebound in housing starts and chemical spreads. However, given the current negative net margins, this valuation may be overly optimistic if the recovery in residential construction remains delayed by persistent interest rate headwinds.
As reported in recent financial statements, Westlake's ROIC has deteriorated into negative territory, reaching -0.9% in 2026Q1, a sharp reversal from the 2.2% peak observed in 2024Q2, indicating that the company is currently failing to generate returns above its cost of capital.
This decay in capital efficiency is largely driven by the combination of margin compression in the PEM segment and the high fixed-cost burden of its integrated manufacturing assets. Investors should monitor whether this trend represents a structural impairment of the company's asset base or merely a temporary trough in the chemical cycle.
According to quarterly data, Westlake's cash conversion cycle has lengthened to 88 days as of 2026Q1, up from 78 days in 2024Q2, suggesting that the company is experiencing increased friction in managing its inventory and receivables during this period of declining demand.
The rise in the CCC reflects a growing inability to turn inventory into cash efficiently, likely exacerbated by the buildup of finished goods in the HIP segment. This trend warrants further investigation into whether the company is forced to offer more lenient credit terms to maintain volume in a softening market.
Based on reported figures, Westlake's debt-to-equity ratio has climbed to 0.71 in 2026Q1 from 0.48 in 2024Q4, signaling that the company is increasingly utilizing its balance sheet to sustain operations and dividend payments during a period of negative cash flow generation.
While the current leverage remains manageable compared to peers, the trend of rising debt in the face of negative interest coverage ratios is concerning. The company's ability to service this debt may become constrained if the current cyclical downturn in chemical pricing persists longer than anticipated.
The P/E ratio is frequently misapplied to Westlake, as it obscures the massive impact of cyclical plant turnarounds and non-cash impairment charges that distort earnings, making the EV/EBITDA metric a more reliable indicator of the company's true operational performance and mid-cycle earning power.
Because Westlake is a capital-intensive manufacturer, its depreciation and amortization schedules often mask the underlying cash-generating capacity of its integrated vinyls chain. Analysts should prioritize EV/EBITDA and free cash flow metrics to avoid being misled by the volatility inherent in the company's GAAP net income figures.
Includes 30+ ratios · 26 years · Updated daily
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Quick answers to the most common questions about buying WLK stock.
Westlake Corporation's current P/E ratio is -6.5x. The historical average is 15.5x.
Westlake Corporation's return on equity (ROE) is -14.8%. The historical average is 12.9%.
Based on historical data, Westlake Corporation is trading at a P/E of -6.5x. Compare with industry peers and growth rates for a complete picture.
Westlake Corporation's current dividend yield is 2.77%.
Westlake Corporation has 2.6% gross margin and -14.1% operating margin.