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 shift towards a more favorable assessment. The company appears undervalued, with a P/E ratio of 2, significantly lower than its peers, such as Kronos Worldwide, Inc. at 10.01 and Advansix, Inc. at 8.36. Additionally, Westlake's EV to EBITDA stands at 2.50, while the industry average is considerably higher, further supporting the undervaluation thesis.
In terms of performance, Westlake Chemical has underperformed relative to the S&P 500 across multiple periods, with a year-to-date return of -19.32% compared to the S&P 500's 16.30%. This trend continues over one year and three years, where Westlake's returns of -16.47% and -20.32% starkly contrast with the S&P 500's 19.89% and 76.66%, respectively. Overall, the combination of low valuation ratios and poor stock performance relative to the benchmark suggests that Westlake Chemical Partners LP is currently undervalued.