Latest Ratios: P/E Ratio 13.1x · EV/EBITDA 9.6x · ROE 31.0%. (2008–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $16.5B | $15.9B | $14.7B | $11.2B | $10.6B | $9.2B | $6.0B | $8.2B | $6.1B | $8.1B | $9.3B |
| Enterprise Value | $24.6B | $24.0B | $21.7B | $18.9B | $17.2B | $15.9B | $13.5B | $16.1B | $11.2B | $11.5B | $12.0B |
| P/E Ratio → | 13.07 | 13.17 | 9.56 | 11.25 | 8.95 | 10.22 | 11.71 | 11.72 | 16.41 | 21.60 | 27.68 |
| P/S Ratio | 3.60 | 4.14 | 4.08 | 3.62 | 3.27 | 3.19 | 2.17 | 2.98 | 3.05 | 3.62 | 5.14 |
| P/B Ratio | 3.85 | 3.82 | 4.35 | 3.71 | 3.42 | 2.96 | 2.08 | 2.45 | 1.24 | 2.06 | 2.26 |
| P/FCF | 14.91 | 10.85 | 11.53 | 12.32 | 8.76 | 6.31 | 4.95 | 60.52 | — | 36.58 | 21.41 |
| P/OCF | 7.51 | 7.25 | 6.97 | 6.82 | 6.25 | 5.19 | 3.67 | 6.18 | 5.97 | 9.07 | 10.15 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.25 | 6.03 | 6.10 | 5.28 | 5.54 | 4.86 | 5.84 | 5.64 | 5.14 | 6.67 |
| EV / EBITDA | 9.57 | 10.45 | 8.30 | 9.56 | 7.92 | 8.44 | 9.83 | 9.36 | 11.06 | 11.60 | 12.31 |
| EV / EBIT | 15.50 | 15.08 | 10.90 | 13.64 | 10.89 | 12.27 | 15.14 | 14.43 | 12.98 | 14.22 | 16.84 |
| EV / FCF | — | 16.39 | 17.06 | 20.74 | 14.15 | 10.96 | 11.07 | 118.66 | — | 51.93 | 27.78 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 68.5% | 68.5% | 77.2% | 75.4% | 69.1% | 69.6% | 75.5% | 66.2% | 61.3% | 46.6% | 57.5% |
| Operating Margin | 41.3% | 41.3% | 54.7% | 44.4% | 48.8% | 46.4% | 31.7% | 44.8% | 31.4% | 31.3% | 39.0% |
| Net Profit Margin | 30.4% | 30.4% | 43.6% | 32.9% | 37.4% | 31.8% | 19.0% | 25.4% | 18.6% | 16.8% | 19.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 31.0% | 31.0% | 49.1% | 33.3% | 39.2% | 30.6% | 16.9% | 16.9% | 8.4% | 9.4% | 8.6% |
| ROA | 8.3% | 8.3% | 12.3% | 8.6% | 10.8% | 7.9% | 4.4% | 6.5% | 4.3% | 4.8% | 4.8% |
| ROIC | 10.5% | 10.5% | 14.0% | 10.2% | 12.2% | 9.9% | 6.1% | 8.7% | 5.4% | 7.4% | 7.9% |
| ROCE | 12.6% | 12.6% | 17.4% | 12.8% | 15.5% | 12.7% | 7.7% | 12.0% | 7.7% | 9.4% | 10.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.14 | 2.14 | 2.41 | 2.63 | 2.20 | 2.25 | 2.73 | 2.38 | 1.07 | 0.89 | 0.76 |
| Debt / EBITDA | 3.89 | 3.89 | 3.11 | 4.02 | 3.15 | 3.68 | 5.76 | 4.64 | 5.17 | 3.51 | 3.19 |
| Net Debt / Equity | — | 1.95 | 2.09 | 2.54 | 2.10 | 2.18 | 2.57 | 2.35 | 1.05 | 0.87 | 0.67 |
| Net Debt / EBITDA | 3.53 | 3.53 | 2.69 | 3.88 | 3.01 | 3.58 | 5.44 | 4.59 | 5.08 | 3.43 | 2.82 |
| Debt / FCF | — | 5.54 | 5.53 | 8.42 | 5.39 | 4.65 | 6.12 | 58.14 | — | 15.35 | 6.37 |
| Interest Coverage | 4.08 | 4.08 | 5.46 | 4.13 | 4.90 | 3.57 | 2.34 | 3.67 | 4.70 | 5.61 | 6.13 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.34 | 1.34 | 1.09 | 0.76 | 1.00 | 0.60 | 0.98 | 0.83 | 0.63 | 0.60 | 1.89 |
| Quick Ratio | 1.33 | 1.33 | 1.09 | 0.76 | 0.99 | 0.60 | 0.98 | 0.78 | 0.61 | 0.58 | 1.87 |
| Cash Ratio | 0.66 | 0.66 | 0.64 | 0.21 | 0.32 | 0.18 | 0.46 | 0.21 | 0.17 | 0.19 | 1.14 |
| Asset Turnover | — | 0.26 | 0.27 | 0.25 | 0.29 | 0.26 | 0.23 | 0.22 | 0.22 | 0.28 | 0.23 |
| Inventory Turnover | 94.44 | 94.44 | 327.24 | 299.28 | 264.23 | 259.32 | 770.04 | 38.09 | 70.80 | 111.19 | 107.65 |
| Days Sales Outstanding | — | 74.91 | 73.04 | 80.05 | 66.26 | 59.26 | 62.03 | 36.20 | 43.21 | 26.28 | 45.82 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 8.9% | 9.0% | 8.7% | 10.2% | 6.9% | 5.8% | 12.8% | 11.8% | 8.3% | 5.4% | 4.0% |
| Payout Ratio | 122.4% | 122.4% | 80.8% | 111.7% | 60.5% | 58.3% | 146.4% | 139.0% | 136.0% | 117.4% | 108.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.6% | 7.6% | 10.5% | 8.9% | 11.2% | 9.8% | 8.5% | 8.5% | 6.1% | 4.6% | 3.6% |
| FCF Yield | 6.7% | 9.2% | 8.7% | 8.1% | 11.4% | 15.8% | 20.2% | 1.7% | — | 2.7% | 4.7% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 1.2% | 4.6% | 2.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.3% |
| Total Shareholder Yield | 8.9% | 9.0% | 8.7% | 11.4% | 11.5% | 8.2% | 12.8% | 11.8% | 8.3% | 5.4% | 4.3% |
| Shares Outstanding | — | $402M | $382M | $384M | $396M | $412M | $436M | $416M | $219M | $219M | $219M |
Includes 30+ ratios · 18 years · Updated daily
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Quick answers to the most common questions about buying WES stock.
Western Midstream Partners, LP's current P/E ratio is 13.1x. The historical average is 26.9x. This places it at the 46th percentile of its historical range.
Western Midstream Partners, LP's current EV/EBITDA is 9.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.0x.
Western Midstream Partners, LP's return on equity (ROE) is 31.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 17.2%.
Based on historical data, Western Midstream Partners, LP is trading at a P/E of 13.1x. This is at the 46th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Western Midstream Partners, LP's current dividend yield is 8.92% with a payout ratio of 122.4%.
Western Midstream Partners, LP has 68.5% gross margin and 41.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Western Midstream Partners, LP's Debt/EBITDA ratio is 3.9x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Leverage and acquisition integration risk
Metrics are mathematically derived from official filings.
Discount to Midstream Peers Persists
Based on the supplied valuation data, WES trades at a trailing P/E of 13.28 and EV/EBITDA of 10.70, a modest discount to MPLX and PAA on EV/EBITDA and a below-peer forward P/E of 10.69 that signals investors are pricing in elevated risk.
Compared with its own forward-looking multiples, the forward EV/EBITDA of 8.23 suggests the market expects EBITDA to step up, but that expectation depends on successful integration of recent acquisitions. The PEG of 0.65 appears low relative to EPD's 1.51, which may reflect skepticism about earnings durability after the recent miss rather than an outright mispricing. The 8.9% dividend yield is well above the peer range, which investors should monitor against distribution coverage given that distributions have absorbed a large share of recent operating cash flow.
Margin Compression Obscures Earnings Power
As reported in the financial statements, gross margin fell from roughly 76.9% in 2025Q1 to 65.4% in 2026Q3 while operating margin compressed from 44.7% to 38.6%, suggesting costs are scaling faster than revenue.
The decline in gross margin may indicate a shift in contract mix or rising direct operating costs, which warrants separating acquired-asset margins from legacy margins. Net margin of 27.8% in the latest quarter remains above the peer median, but the drop from 36.3% a year earlier suggests that headline profitability is becoming less representative of underlying earning power. Investors should monitor whether margins stabilize once acquired throughput is fully integrated.
Debt Service Comfort Narrowing Gradually
Based on WES's reported figures, debt-to-EBITDA rose from about 11.4x in 2025Q3 to 13.5x in 2026Q3 while interest coverage fell from 4.80x to 3.97x, suggesting debt service has become less comfortable.
The rise in leverage appears tied to acquisition financing rather than operating deterioration, though the distinction matters for refinancing risk. Interest coverage remains above 3x, which suggests adequate near-term servicing capacity, but the trend points in a direction that limits flexibility. Investors should monitor the leverage trajectory and deleveraging progress in upcoming quarters.
Thin Cash Buffer Under Current Ratio Pressure
According to recent SEC filings, WES's current ratio declined from 1.43 in 2025Q3 to 0.81 in 2026Q3 as cash fell to about $44.5M, leaving a narrow margin for short-term obligations.
A current ratio below 1.0 combined with quick ratio of 0.80 suggests the partnership relies on ongoing operating cash inflows and access to credit facilities to meet near-term obligations. Under severe stress, a sudden drop in throughput or delayed distribution from acquired assets could compress this buffer quickly. The position appears manageable given fee-based revenue, but it warrants close monitoring of working capital and credit availability.
Leverage Gap Versus Diversified Peers
Based on the supplied peer data, WES's debt-to-equity of 2.12 sits well above EPD's 1.14 and PAA's 0.86, while its ROE of 7.6% trails MPLX's 30.4%, indicating a structural gap in capital efficiency.
The leverage gap appears partly structural, reflecting WES's concentrated customer base and acquisition-driven balance sheet growth, rather than a purely temporary condition. The lower ROE relative to MPLX suggests WES is generating less return per dollar of equity, which may keep the valuation discount in place until returns improve. Investors should monitor whether the gap narrows as acquired assets mature.
Headline EBITDA May Overstate Cash Strength
Reported figures show quarterly operating cash flow of roughly 1.4x to 3.0x net income, but these figures may include MVC deficiency payments and do not isolate maintenance capex, which could overstate distributable cash strength.
Operating cash flow consistently exceeding earnings may signal strong non-cash add-backs rather than sustainable earnings-driven cash generation. The data does not clearly separate maintenance from growth capex, so payout safety at an 8.9% yield cannot be confirmed from the supplied figures. Analysts should verify the reported Debt/Equity basis against SEC filings before relying on leverage metrics, given the anomalous figure in the source data.