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 assessment of its worth. The company appears undervalued, supported by a low P/E ratio of 2, a price-to-book value of 1.54, and an EV to EBITDA ratio of 2.50. In comparison to peers, Westlake's P/E ratio is significantly lower than that of Kronos Worldwide, Inc. at 10.01 and Advansix, Inc. at 8.36, reinforcing the notion of undervaluation.
Despite the attractive valuation metrics, Westlake 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 company may be undervalued based on its financial ratios, market sentiment has not yet aligned with its intrinsic value.