Latest Ratios: P/E Ratio 15.2x · EV/EBITDA 11.7x · 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 | $18.9B | $15.9B | $14.7B | $11.2B | $10.6B | $9.2B | $6.0B | $8.2B | $6.1B | $8.1B | $9.3B |
| Enterprise Value | $27.0B | $24.0B | $21.7B | $18.9B | $17.2B | $15.9B | $13.5B | $16.1B | $11.2B | $11.5B | $12.0B |
| P/E Ratio → | 15.22 | 13.17 | 9.56 | 11.25 | 8.95 | 10.22 | 11.71 | 11.72 | 16.41 | 21.60 | 27.68 |
| P/S Ratio | 4.91 | 4.14 | 4.08 | 3.62 | 3.27 | 3.19 | 2.17 | 2.98 | 3.05 | 3.62 | 5.14 |
| P/B Ratio | 4.41 | 3.82 | 4.35 | 3.71 | 3.42 | 2.96 | 2.08 | 2.45 | 1.24 | 2.06 | 2.26 |
| P/FCF | 12.88 | 10.85 | 11.53 | 12.32 | 8.76 | 6.31 | 4.95 | 60.52 | — | 36.58 | 21.41 |
| P/OCF | 8.60 | 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 | 11.75 | 10.45 | 8.30 | 9.56 | 7.92 | 8.44 | 9.83 | 9.36 | 11.06 | 11.60 | 12.31 |
| EV / EBIT | 17.01 | 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 | 7.8% | 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 | 6.6% | 7.6% | 10.5% | 8.9% | 11.2% | 9.8% | 8.5% | 8.5% | 6.1% | 4.6% | 3.6% |
| FCF Yield | 7.8% | 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 | 7.8% | 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 15.2x. The historical average is 26.9x. This places it at the 54th percentile of its historical range.
Western Midstream Partners, LP's current EV/EBITDA is 11.7x. 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 15.2x. This is at the 54th 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 7.79% 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
Metrics are mathematically derived from official filings.
Discounted Growth Despite Premium Yield
WES trades at 12.1x EV/EBITDA versus peers' 10.9x average, yet its 7.5% distribution yield and 0.77 PEG suggest the market prices in decelerating growth, per reported multiples.
The forward EV/EBITDA of 10.3x implies a modest premium to the peer median of 9.8x, but the PEG of 0.77 indicates the market expects earnings growth to outpace the multiple, a rare combination for a midstream name. The 7.5% distribution yield, the highest among the peer set, suggests investors are demanding compensation for perceived risks, possibly related to leverage or commodity exposure. Given the recent volume-driven revenue acceleration, the valuation may not fully reflect the growth trajectory, presenting potential upside if the company sustains its operational momentum.
Margin Volatility Masks Underlying Strength
Gross margin averaged 76% over the last four quarters, but 2025Q4's 49.4% dip, as per financial statements, highlights cost volatility that obscures the stable 43% operating margin trend.
Operating margin has remained resilient, hovering between 41% and 47% in recent quarters, indicating that the company's core fee-based business generates consistent earnings before the impact of variable costs. The 2025Q4 gross margin collapse to 49.4% appears to be an anomaly, likely driven by a spike in COGS, but the subsequent recovery to 67.1% in 2026Q2 suggests it was a temporary disruption. Net margin of 33% in 2026Q2, while below the 2024Q1 peak of 64.5%, still reflects strong earning power, though investors should monitor cost volatility as a potential drag on future profitability.
Returns Compress on Asset-Heavy Expansion
ROIC has declined from 4.8% in 2024Q1 to 3.2% in 2026Q2, as per reported figures, indicating that the recent acquisition and capex have not yet generated proportional returns.
The decline in ROIC, despite stable margins, suggests that the company's asset base is growing faster than its operating income, a common pattern during periods of heavy investment. ROE has also trended downward from 17.9% in 2024Q1 to 10.2% in 2026Q2, reflecting both lower net income and a larger equity base. This compression may be temporary if the acquired assets and new infrastructure begin generating cash flows, but investors should monitor whether returns revert to historical levels or if the company is entering a lower-return phase.
Working Capital Efficiency Improves with Scale
Cash conversion cycle turned deeply negative, averaging -70 days over the last four quarters, as per reported data, indicating WES is effectively using supplier financing to fund operations.
The negative CCC, driven by DPO of 104-151 days versus DSO of 66-69 days, suggests that WES is delaying payments to suppliers while collecting from customers relatively quickly, a favorable position that reduces the need for working capital. Asset turnover remains low at 0.08, typical for midstream infrastructure, but the efficiency in working capital management partially offsets the capital intensity. The improvement in CCC from -55 days in 2026Q1 to -70 days in 2025Q2 indicates that the company is increasingly leveraging its scale to negotiate better payment terms, which supports cash flow generation.
Debt Load Elevated but Coverage Stabilizes
D/EBITDA improved to 12.46 in 2026Q2 from 18.31 in 2025Q4, while interest coverage rose to 4.81, as per financial statements, suggesting leverage is manageable despite high absolute debt.
The spike in D/EBITDA to 18.31 in 2025Q4 was likely due to a temporary drop in EBITDA, but the subsequent recovery to 12.46 indicates that the company's cash flows are sufficient to service its debt. Interest coverage of 4.81 in 2026Q2, up from 2.20 in 2026Q1, provides a comfortable cushion, though it remains below the 7.19 seen in 2024Q1. The D/E ratio of 2.07 is higher than peers like EPD (1.14) and PAA (0.86), but the company's stable cash flows and fee-based revenue model may justify the leverage. Investors should monitor the integration of the recent acquisition, as it could strain coverage if cash flows do not materialize as expected.
Liquidity Tightens Post-Acquisition
Current ratio fell to 0.91 in 2026Q2 from 1.09 in 2026Q1, with cash dropping to $104.8M, as per reported figures, indicating reduced short-term flexibility after the acquisition.
The current ratio below 1.0 suggests that current liabilities exceed current assets, which could be a concern if the company faces unexpected cash needs. However, the negative CCC and strong operating cash flow generation (FCF margin of 123.4% in 2026Q2) provide a buffer, as the company can quickly convert operations into cash. The quick ratio of 0.91, which excludes inventory, is nearly identical to the current ratio, indicating that inventory is not a significant liquidity factor. While the liquidity position appears strained on a static basis, the company's ability to generate cash from operations may mitigate the risk, but investors should watch for any further deterioration.
Misapplied Metric: EV/EBITDA
EV/EBITDA is commonly misapplied to WES because it ignores the high distribution yield and the capital-intensive nature of midstream assets, as per reported data, obscuring true cash flow generation.
For a master limited partnership like WES, EV/EBITDA can be misleading because it does not account for the significant maintenance capex required to sustain the asset base, nor does it reflect the cash available for distributions. A more appropriate metric is distributable cash flow (DCF) or free cash flow after maintenance capex, which better captures the company's ability to cover its 7.5% yield. Additionally, the high D/EBITDA ratio of 12.46 may overstate leverage risk, as EBITDA in midstream often includes non-cash items and does not reflect the stability of fee-based revenues. Investors should focus on cash flow-based multiples, such as P/FCF (13.37), which provides a clearer picture of valuation relative to actual cash generation.