Is Westlake Chemical Partners LP overvalued or undervalued?

As of 31 October 2025, the valuation grade for Westlake Chemical Partners LP has moved from fair to attractive, indicating a more favorable assessment of its value. The company appears undervalued, with a P/E ratio of 2, significantly lower than its peers such as Kronos Worldwide, Inc. with a P/E of 10.01, and Advansix, Inc. at 8.36. Additionally, Westlake's EV to EBITDA ratio stands at 2.50, which is competitive compared to the industry average, suggesting potential for growth.
In terms of performance metrics, Westlake boasts a robust ROE of 63.47% and an impressive ROCE of 39.90%, highlighting its efficient use of equity and capital. However, the company's stock has underperformed relative to the S&P 500, with a year-to-date return of -20.05% compared to the index's 16.30%. This disparity reinforces the notion that the stock may be undervalued, presenting a potential buying opportunity for investors.