Is Westlake Chemical Partners LP overvalued or undervalued?

As of 31 October 2025, the valuation grade for Westlake Chemical Partners LP moved from fair to attractive, indicating a more favorable outlook. The company appears undervalued, supported by a P/E ratio of 2, an EV/EBITDA of 2.50, and a Price to Book Value of 1.54. In comparison, peers such as Kronos Worldwide, Inc. have a P/E of 10.01 and an EV/EBITDA of 7.10, while Advansix, Inc. shows a P/E of 8.36 and an EV/EBITDA of 5.58, highlighting Westlake's relative undervaluation in the specialty chemicals sector.
Despite the attractive valuation metrics, Westlake Chemical Partners LP has underperformed against the S&P 500, with a year-to-date return of -18.50% compared to the index's 16.30%. This underperformance over multiple periods suggests that while the stock may be undervalued, market sentiment has not yet reflected this potential.