Is Westlake Corp. overvalued or undervalued?

As of 30 April 2025, Westlake Corp. has moved from a fair to an attractive valuation grade. The company appears to be undervalued with a P/E ratio of 21, which is higher than its peer Avantor, Inc. at 11.53 and NewMarket Corp. at 12.50, indicating that Westlake is trading at a premium compared to these peers. Additionally, its EV to EBITDA ratio stands at 6.64, which is lower than Avantor's 11.49, suggesting that Westlake may offer better value relative to its earnings potential.
Despite the attractive valuation, Westlake has faced significant stock performance challenges, with a year-to-date return of -35.84% compared to a 2.44% gain in the S&P 500. The company's price to book value of 0.95 and a dividend yield of 202.42% further reinforce its undervaluation status. Overall, Westlake Corp. represents an attractive investment opportunity given its current valuation metrics and peer comparisons.