Switch to:
GuruFocus has detected 4 Warning Signs with Westlake Chemical Corp $WLK.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Westlake Chemical Corp (NYSE:WLK)
EV-to-EBITDA
11.59 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Westlake Chemical Corp's enterprise value is $11,771 Mil. Westlake Chemical Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $1,016 Mil. Therefore, Westlake Chemical Corp's EV/EBITDA ratio for today is 11.59.

WLK' s EV-to-EBITDA Range Over the Past 10 Years
Min: 3.4   Max: 48
Current: 11.59

3.4
48

During the past 13 years, the highest EV/EBITDA Ratio of Westlake Chemical Corp was 48.00. The lowest was 3.40. And the median was 6.60.

WLK's EV-to-EBITDA is ranked lower than
51% of the 1142 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 12.25 vs. WLK: 11.59 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Westlake Chemical Corp's stock price is $62.25. Westlake Chemical Corp's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $3.06. Therefore, Westlake Chemical Corp's P/E Ratio for today is 20.34.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Westlake Chemical Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=11771.379/1015.518
=11.59

Westlake Chemical Corp's current Enterprise Value is $11,771 Mil.
Westlake Chemical Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 270.635 (Mar. 2016 ) + 255.369 (Jun. 2016 ) + 182.057 (Sep. 2016 ) + 307.457 (Dec. 2016 ) = $1,016 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

Westlake Chemical Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=62.25/3.06
=20.34

Westlake Chemical Corp's share price for today is $62.25.
Westlake Chemical Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.94 (Mar. 2016 ) + 0.85 (Jun. 2016 ) + 0.51 (Sep. 2016 ) + 0.76 (Dec. 2016 ) = $3.06.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Westlake Chemical Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 6.1616.968.085.894.486.677.346.245.5910.79

Westlake Chemical Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 9.246.247.276.564.915.594.894.9911.1710.79
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK