Western Midstream Partners LP (WES) fair value: what the stock is really worth
As of Nov 4, 2026: fair value (intrinsic value) of Western Midstream Partners LP stock $48.26, price $42.54, upside +13.4%, quality 54 out of 100. Rating: undervalued. Calculated from audited financials with 25 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 4, 2026.
How to read this chart
60‑month range $12.27 – $49.80 · fair‑value band $21.09 – $65.33 · the $42.54 price screens below the $48.26 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 4, 2026.
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Western Midstream Partners, LP, together with its subsidiaries, operates as a midstream energy company primarily in the United States.
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The company is involved in gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural gas liquids (NGLs), and crude oil; and gathering and disposing of produced water. It also buys and sells residue, NGLs, and condensates.
The company operates assets located in Texas, New Mexico, and the Rocky Mountains. It also provides water handling solutions. The company was formerly known as Western Gas Equity Partners, LP and changed its name to Western Midstream Partners, LP in February 2019.
Western Midstream Partners, LP was incorporated in 2007 and is based in The Woodlands, Texas.
Stock analysis
Western Midstream Partners LP (WES) currently trades at $42.54, while our model-based Fair Value estimate is $48.26, implying the stock looks roughly 12% undervalued today.
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Valuation
Bull case: the Dividend Discount group reads highest at a median of $59.12 per share, and 10 of the 25 models we run sit above the $42.54 price.
Bear case: the Multiples group reads lowest at $13.72, and 15 of the 25 models stay below the price. Data coverage for this calculation is high.
Scenario range: $21.09 (bear) to $65.33 (bull), the price of $42.54 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 54/100 (solid quality), in the Energy sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Western Midstream Partners LP reported revenue of $3.8B in FY2025 versus $2.9B in FY2021, a compound +7.5%/yr. Reported net income was $1.2B in FY2025, compounding +6.3%/yr from FY2021.
Key figures
Market cap $17.6B Large · P/E ratio 13.5 · P/S ratio 4.06 · EPS (TTM) $3.16 · Dividend yield 8.7% · Net margin 29.0% · Return on equity 34.1% · Return on assets (EBIT) 12.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 81 out of 100 (medium confidence).
What moves the price
The share trades about 15% below its 52-week high and 19% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Energy peers we cover trades at −26% fair-value upside, at 13%, WES screens cheaper than that median.
Fair Value models
Bear$21.09Fair Value $48.26Bull$65.33
Price $42.54 · Upside +13.4%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, one officer or director bought shares worth $249,907, on Aug 12, 2026.
BuyFrederick A. ForthuberDirector5,140 shares at $48.62$249,907Aug 12, 2026
BuyRobert G PhillipsDirector1,250 shares at $40.19$50,238Mar 11, 2026
SaleChristopher B. DialSVP, GC and Secretary5,879 shares at $42.35$248,976Feb 12, 2026
Plus one other filing such as a grant, option exercise or tax withholding. It is not a market purchase or sale.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+6.6%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.7%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.7%
Start year 2020 (pandemic). Over 10 years: +9.4% a year
Revenue growth 19 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+22.5%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+14.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year+5.7%
Dividend (yield on the price)8.7%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.11.6% vs 11.1%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.32% → 41%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+3.5%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+7.2%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +1.1% a year for the price and +4.7% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (94 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Stable fee-based margins and ROE from midstream infrastructure provide durability, while elevated total debt relative to equity requires ongoing monitoring.
Main risk: Any material reduction in Occidental Petroleum's production volumes could lower throughput on Western Midstream's gathering and processing assets and reduce fee revenues.
Bull case: Through further acquisitions and new contracts with independent producers the company could diversify its customer base and sustain stable fee-based cash flows despite any changes at Occidental.
Bear case: If Occidental significantly reduces activity or larger rivals capture substantial market share, Western Midstream's throughput volumes and associated revenues from midstream services could decline materially over time.
Western Midstream raised full-year guidance after posting record adjusted EBITDA in the second quarter on higher volumes. The upcoming third-quarter call is set to highlight how the new Brazos assets contribute once fully included, even as normalizing commodity prices weigh on results. Will integration and organic growth from the acquisition more than offset softer pricing, or will the benefit stay muted?
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Oil & Gas Midstream · 81 stocks
Beats the industry median on 9/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score54 · Above median
Fair Value upside+13.4% · Top 25%
Profitability
Return on equity (12 months)34.1% · Top 25%
Return on assets7.8% · Top 25%
Net margin (12 months)29.0% · Above median
Operating margin (12 months)41.7% · Above median
Growth and dividend
Revenue growth (quarter YoY)30.0% · Above median
Dividend yield (12 months)8.7% · Top 25%
Balance sheet
Debt / equity2.04× · Highest 25%
Valuation Multiplesvs Oil & Gas Midstream median · lower = cheaper
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Is Western Midstream Partners LP (WES) overvalued or undervalued?
As of Nov 4, 2026, our model estimates a fair value of $48.26 versus a price of $42.54, about +13% upside (undervalued).
What is the fair value of WES?
Our model-based fair value for Western Midstream Partners LP is $48.26 (as of Nov 4, 2026), built from audited fundamentals. The current price: $42.54.
What is the quality score of WES?
Western Midstream Partners LP has a Quality Score of 54/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Western Midstream Partners LP (WES)?
Our model-based price target is the fair value of $48.26 (as of Nov 4, 2026) from 25 valuation models. Cautious scenario $21.09, optimistic scenario $65.33. It is a calculation from audited fundamentals, not an analyst target.
What is the Western Midstream Partners LP stock forecast for 2026?
Our models put fair value at $48.26, about +13% upside versus a price of $42.54 (undervalued). Cautious scenario $21.09, optimistic scenario $65.33. The calculation is refreshed regularly with new filings.
What is the revenue of Western Midstream Partners LP (WES)?
Western Midstream Partners LP reported trailing-twelve-month revenue of about $4.3B (latest available figure, as of Nov 4, 2026).
Does Western Midstream Partners LP pay a dividend?
Western Midstream Partners LP currently shows a dividend yield of 8.65% relative to its recent price (as of Nov 4, 2026).
What growth is priced into Western Midstream Partners LP (WES)?
For today's price to be fair in a discounted-cash-flow model, Western Midstream Partners LP would have to grow free cash flow by +3.5 % per year for five years (discount rate 8.6 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +6.8 % per year. As of Nov 4, 2026.
What discount rate (WACC) does the fair value of WES use?
Our models discount Western Midstream Partners LP at 8.6 %: a base by market capitalisation (large), damped by beta 0.71, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Western Midstream Partners LP that is +3.5 % per year a year over ten years, using the same discount rate (8.6 %) and the same formula as our fair value.
How much growth has Western Midstream Partners LP (WES) delivered so far?
Over the past 5 years revenue at Western Midstream Partners LP grew +6.8 % a year. The price currently implies +3.5 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Western Midstream Partners LP (WES) growing?
The median revenue growth in the sector is +14.2 % a year. That is the yardstick for the growth priced into Western Midstream Partners LP (+3.5 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Western Midstream Partners LP (WES)?
The free-cash-flow yield on the price is 8.62 %: that much free cash flow Western Midstream Partners LP produces per unit of market value. When it exceeds the discount rate of our models (8.6 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Western Midstream Partners LP (WES)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Western Midstream Partners LP it is $48.26 per share (as of Nov 4, 2026), against a price of $42.54. It is the blended result of 25 valuation models (cash flow, earnings, asset, dividend).
Is Western Midstream Partners LP stock overvalued or undervalued in 2026?
As of Nov 4, 2026, WES trades below its calculated fair value: price $42.54, fair value $48.26, a gap of about +13% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of WES?
No. The price is what the market pays today ($42.54); the fair value is what the company's own numbers justify ($48.26). For Western Midstream Partners LP the two are $5.72 per share apart. That gap is exactly why we show both numbers side by side.
How much is Western Midstream Partners LP worth?
The market values Western Midstream Partners LP at about $17.6B (market capitalisation, as of Nov 4, 2026). Per share that is $42.54; our models calculate a fair value of $48.26 per share.
What do the bullish and bearish scenarios say about WES?
Our models span a range for Western Midstream Partners LP: cautious scenario $21.09, base $48.26, optimistic $65.33 per share (as of Nov 4, 2026, price $42.54). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of WES?
Western Midstream Partners LP trades at a price-to-earnings ratio of 13.5 (as of Nov 4, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $48.26 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 7 of the years ex one-offs: 9.8. Other multiples: PEG 5.5, P/B 4.4, P/S 4.1, EV/EBITDA 10.0.
What is the PEG ratio of WES?
The PEG ratio of Western Midstream Partners LP is 5.48 (P/E divided by earnings growth, as of Nov 4, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Western Midstream Partners LP (WES)?
Balance-sheet figures for Western Midstream Partners LP (as of Nov 4, 2026): return on equity 34.1%, debt of 2.04 per unit of equity. They feed the Quality Score of 54/100, which measures business quality independently of the share price.
How far is WES from its 52-week high?
Western Midstream Partners LP trades at $42.54, about 15% below its 52-week high of $49.80 and 19% above the low of $35.74 (as of Nov 4, 2026). Distance from the high says nothing about value: that is what the fair value of $48.26 is for.
Which stocks are comparable to Western Midstream Partners LP?
From the same area (Energy) we also value Enbridge Inc, The Williams Companies, Inc, Enterprise Products Partners L.P., Kinder Morgan, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Western Midstream Partners LP stock attractive at the current price?
The data as of Nov 4, 2026: price $42.54, calculated fair value $48.26 (+13%), Quality Score 54/100, from 25 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of WES calculated?
We run Western Midstream Partners LP through 25 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $48.26, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Western Midstream Partners LP currently trades 12% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Western Midstream Partners LP (WES)?
The closing price on Nov 4, 2026 was $42.54. Our model-based fair value is $48.26, about +13% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Western Midstream Partners LP right now?
The model range is unusually wide ($21.09 to $65.33). The outcome hinges heavily on assumptions, so read the point estimate with caution. The price sits in the lower half of our model range, the side with the larger margin of safety. The data supports the verdict: every model runs on fully documented inputs.
Where does the earnings growth of Western Midstream Partners LP (WES) come from?
Earnings per share at Western Midstream Partners LP grew +13.9 % a year from 2014 to 2025. Broken into its drivers: revenue per share +2.8 %, EBIT margin +6.9 %, tax rate +0.1 %, residual (interest, one-offs) +3.5 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Western Midstream Partners LP
How large is the market capitalisation of Western Midstream Partners LP (WES)?
The market capitalisation of Western Midstream Partners LP is $17.6B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Western Midstream Partners LP (WES)?
The price-to-sales ratio of Western Midstream Partners LP is 4.06 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Western Midstream Partners LP (WES)?
Earnings per share at Western Midstream Partners LP are $3.16 (price ÷ EPS = P/E 13.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Western Midstream Partners LP (WES)?
The dividend yield of Western Midstream Partners LP is 8.7% (payout 116%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Western Midstream Partners LP (WES)?
The net margin of Western Midstream Partners LP is 29.0% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Western Midstream Partners LP (WES)?
The return on equity (ROE) of Western Midstream Partners LP is 34.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Western Midstream Partners LP (WES)?
On an EBIT basis the return on assets of Western Midstream Partners LP is 12.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Western Midstream Partners LP (WES)?
The operating margin of Western Midstream Partners LP is 41.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Western Midstream Partners LP (WES)?
Revenue at Western Midstream Partners LP is growing +30.0% versus a year earlier (3y avg +5.7%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Western Midstream Partners LP (WES)?
Earnings per share at Western Midstream Partners LP are growing +13.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Western Midstream Partners LP (WES) carry?
The net debt of Western Midstream Partners LP is $8.1B (fiscal year 2025, ≈ 5.5 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 4, 2026