DCF Tool

WLK

Westlake Corporation – All Other Basic Organic Chemical Manufacturing
Westlake is an international manufacturer and supplier of petrochemicals, polymers and building products that enhance the daily lives of people around the world. Whether it’s plastic wrap that keeps meats and produce fresh; the intravenous bags and tubing used in medical care, the pipes that are essential to ensuring clean water, or the chlorine that treats water and helps keep pools safe, Westlake plays a vital role in supplying the building blocks for these products and many more.
Analysis Results
Intrinsic Value $2,600.79
Latest Price $106.28
Relative Value 96% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 34.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 2.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 34.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 3.58 3.48
2023 4.83 4.57
2024 6.51 6.0
2025 8.79 7.87
2026 11.8 10.3
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 355 billion. This corresponds to a present value of 301 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 32.3 billion. Adding in the terminal value gives a total present value of 334 billion.

There are presently 128.0 million outstanding shares, so the intrinsic value per share is 2600.79.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 5,263,000,000
Current Cash 1,908,000,000
Current Liabilities 2,344,000,000
Current Debt 269,000,000
Non-Cash Working Capital (NCWC) 1,280,000,000
Change in NCWC 473,000,000
EBIT 2,821,000,000
Tax Provision 607,000,000
Depreciation and Amortization 840,000,000
Capital Expenditure -658,000,000
Unlevered Free Cash Flow 2,836,348,524
Current Assets 3,477,000,000
Current Cash 1,313,000,000
Current Liabilities 1,357,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 807,000,000
Change in NCWC 34,000,000
EBIT 465,000,000
Tax Provision -42,000,000
Depreciation and Amortization 773,000,000
Capital Expenditure -525,000,000
Unlevered Free Cash Flow 747,000,000
Current Assets 2,742,000,000
Current Cash 728,000,000
Current Liabilities 1,241,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 773,000,000
Change in NCWC -133,000,000
EBIT 693,000,000
Tax Provision 108,000,000
Depreciation and Amortization 713,000,000
Capital Expenditure -787,000,000
Unlevered Free Cash Flow 354,694,736
Current Assets 2,842,000,000
Current Cash 753,000,000
Current Liabilities 1,183,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 906,000,000
Change in NCWC 231,000,000
EBIT 1,457,000,000
Tax Provision 300,000,000
Depreciation and Amortization 641,000,000
Capital Expenditure -702,000,000
Unlevered Free Cash Flow 1,299,338,830
Current Assets 3,463,000,000
Current Cash 1,531,000,000
Current Liabilities 1,967,000,000
Current Debt 710,000,000
Non-Cash Working Capital (NCWC) 675,000,000
Change in NCWC -241,637,000
EBIT 1,262,000,000
Tax Provision -258,000,000
Depreciation and Amortization 601,000,000
Capital Expenditure -577,000,000
Unlevered Free Cash Flow 1,044,363,000
Current Assets 2,408,316,000
Current Cash 459,453,000
Current Liabilities 1,183,083,000
Current Debt 150,857,000
Non-Cash Working Capital (NCWC) 916,637,000
Change in NCWC 440,649,000
EBIT 688,739,000
Tax Provision 138,520,000
Depreciation and Amortization 377,666,000
Capital Expenditure -628,483,000
Unlevered Free Cash Flow 707,711,912
Current Assets 2,175,189,000
Current Cash 1,182,669,000
Current Liabilities 522,642,000
Current Debt 6,110,000
Non-Cash Working Capital (NCWC) 475,988,000
Change in NCWC -117,518,000
EBIT 966,069,000
Tax Provision 298,396,000
Depreciation and Amortization 245,757,000
Capital Expenditure -491,426,000
Unlevered Free Cash Flow 303,672,058
Current Assets 2,011,287,000
Current Cash 880,601,000
Current Liabilities 537,180,000
Current Debt 0
Non-Cash Working Capital (NCWC) 593,506,000
Change in NCWC 49,971,000
EBIT 1,129,874,000
Tax Provision 398,902,000
Depreciation and Amortization 208,486,000
Capital Expenditure -431,104,000
Unlevered Free Cash Flow 541,412,336
Current Assets 1,649,082,000
Current Cash 700,689,000
Current Liabilities 404,858,000
Current Debt 0
Non-Cash Working Capital (NCWC) 543,535,000
Change in NCWC 105,583,000
EBIT 958,378,000
Tax Provision 331,747,000
Depreciation and Amortization 157,808,000
Capital Expenditure -679,222,000
Unlevered Free Cash Flow 205,093,725
Current Assets 1,751,413,000
Current Cash 914,951,000
Current Liabilities 398,510,000
Current Debt 0
Non-Cash Working Capital (NCWC) 437,952,000
Change in NCWC -127,708,000
EBIT 616,795,000
Tax Provision 199,614,000
Depreciation and Amortization 144,541,000
Capital Expenditure -386,882,000
Unlevered Free Cash Flow 36,343,676

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