Is It Too Late To Consider Western Midstream Partners (WES) After A 276% Five Year Return?

Simply Wall St.01-11

If you are wondering whether Western Midstream Partners at around US$41.24 still offers value, you are not alone. This article is here to unpack that question step by step. The unit price has produced...

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The unit price has produced...</p>\n\n<a href=\"https://simplywall.st/stocks/us/energy/nyse-wes/western-midstream-partners/news/is-it-too-late-to-consider-western-midstream-partners-wes-af\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is It Too Late To Consider Western Midstream Partners (WES) After A 276% Five Year Return?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs It Too Late To Consider Western Midstream Partners (WES) After A 276% Five Year Return?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-11 23:18 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/energy/nyse-wes/western-midstream-partners/news/is-it-too-late-to-consider-western-midstream-partners-wes-af><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether Western Midstream Partners at around US$41.24 still offers value, you are not alone. This article is here to unpack that question step by step. The unit price has produced...</p>\n\n<a href=\"https://simplywall.st/stocks/us/energy/nyse-wes/western-midstream-partners/news/is-it-too-late-to-consider-western-midstream-partners-wes-af\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"WES","symbol_name":"Western Midstream Operating, LP.","start_time":0,"source_url":"https://simplywall.st/stocks/us/energy/nyse-wes/western-midstream-partners/news/is-it-too-late-to-consider-western-midstream-partners-wes-af","article_id":"2602523655","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9551704-choice1-main-header/1585186907289"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/energy/nyse-wes/western-midstream-partners/news/is-it-too-late-to-consider-western-midstream-partners-wes-af","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2602523655","pubTimestamp":1768144717,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether Western Midstream Partners at around US$41.24 still offers value, you are not alone. This article is here to unpack that question step by step.\nThe unit price has produced returns of 3.8% over the last week, 4.6% over the last 30 days, 3.8% year to date, 14.0% over 1 year and 91.5% over 3 years, with a very large 5 year return of 275.9% that naturally raises questions about what is already priced in.\nRecent attention on Western Midstream Partners has centered on...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"WES":"Western Midstream Operating, LP.","BK4590":"PTP","BK4588":"碎股","BK4201":"综合性石油与天然气企业","BK4585":"ETF&股票定投概念","BK7041":"综合货品商店","BK7153":"综合零售","BK4144":"石油与天然气的储存和运输","BK7511":"ESG概念","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","BK4559":"巴菲特持仓","WES.AU":"WESFARMERS LTD"},"translate_title":"五年回报率为276%后，考虑Western Midstream Partners(WES)是否为时已晚？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"WES":1.5,"DCF":1,"WES.AU":1.5},"content_text":"If you are wondering whether Western Midstream Partners at around US$41.24 still offers value, you are not alone. This article is here to unpack that question step by step. The unit price has produced returns of 3.8% over the last week, 4.6% over the last 30 days, 3.8% year to date, 14.0% over 1 year and 91.5% over 3 years, with a very large 5 year return of 275.9% that naturally raises questions about what is already priced in. Recent attention on Western Midstream Partners has centered on its role in US energy infrastructure and its exposure to volumes tied to broader oil and gas activity, which helps frame how investors think about the partnership's cash flow profile. At the same time, ongoing sector wide discussions around pipeline and midstream regulation and long term demand for transport capacity continue to shape how the market assesses risk for businesses like this. On Simply Wall St's checklist, Western Midstream Partners has a valuation score of 5 out of 6. Next we will look at how different valuation methods line up with that score before finishing with a simple way to keep all this valuation work in context.  Western Midstream Partners delivered 14.0% returns over the last year. See how this stacks up to the rest of the Oil and Gas industry. AdvertisementApproach 1: Western Midstream Partners Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model estimates what a business could be worth by projecting its future cash flows and then discounting those back to today’s value. It focuses on the cash that could be available to equity holders rather than accounting earnings. For Western Midstream Partners, the model used is a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The last twelve months free cash flow is about $1.41b. Analyst and extrapolated estimates provided to Simply Wall St have free cash flow reaching $1.97b by 2030, with a series of annual projections between 2026 and 2035 that are discounted back to reflect today’s dollars. Pulling all those discounted cash flows together, the model arrives at an estimated intrinsic value of about $109.79 per unit. Compared with the current unit price of around $41.24, this implies the units are trading at a 62.4% discount to that DCF estimate, which indicates the units are undervalued according to this model. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Western Midstream Partners is undervalued by 62.4%. Track this in your watchlist or portfolio, or discover 882 more undervalued stocks based on cash flows. WES Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Western Midstream Partners. Approach 2: Western Midstream Partners Price vs Earnings For a profitable business like Western Midstream Partners, the P/E ratio is a useful way to think about value because it directly links what you pay for each unit to the earnings that support it. In simple terms, higher growth expectations or lower perceived risk can justify a higher “normal” P/E, while lower growth or higher risk usually points to a lower one. Western Midstream Partners currently trades on a P/E of 13.0x. That sits slightly below the Oil and Gas industry average of about 13.3x, and meaningfully below the peer group average of 19.7x. On the surface, that suggests the units trade at a lower earnings multiple than many similar businesses. Simply Wall St’s Fair Ratio for Western Midstream Partners is 19.4x. This is a proprietary estimate of what a reasonable P/E could be given the partnership’s earnings growth profile, industry, profit margins, market cap and risk characteristics. Because it blends these company specific inputs, the Fair Ratio can be more tailored than a simple comparison with industry or peer averages. Comparing the current P/E of 13.0x with the Fair Ratio of 19.4x points to Western Midstream Partners trading below that tailored estimate. Result: UNDERVALUED NYSE:WES P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1444 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Western Midstream Partners Narrative Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives. These are simple stories you create about Western Midstream Partners that tie your view on its projects, risks and opportunities to explicit numbers for future revenue, earnings, margins and a fair value. They are available on Simply Wall St’s Community page, which is used by millions of investors. They update automatically when new news or earnings data, such as the iodine water project or revised analyst assumptions, come through. Narratives help you decide whether to buy, hold or sell by comparing your Fair Value to the current price. One investor might build a more optimistic Western Midstream Partners Narrative using the higher analyst inputs and a fair value around US$46.00. Another might lean on the more cautious assumptions and a fair value closer to US$36.00. Both can clearly see how their story, forecast and valuation fit together. Do you think there's more to the story for Western Midstream Partners? Head over to our Community to see what others are saying! NYSE:WES 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Western Midstream Partners might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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