Home Author: Daniel Fletcher-Manuel

Chemical Connections

Chemical Investor Forum: Exploring regression analysis to forecast Westlake’s earnings

The multiple linear regression analysis technique shows a 0.87 R-squared value for Westlake Chemical’s quarterly EBITDA (2012-2020) as the dependant variable against a basket of 17 ICIS chemical prices. This suggests that in 87% of cases, Westlake’s quarterly earnings can be explained by movements in the basket of ICIS chemical prices. Financial analysts can use […]

ICIS Chemical Investor: What does the calming of chemical price volatility mean for M&A practitioners?

2019 was a slow year for chemicals M&A deals, although this was largely the result of intense activity in the preceding three years. Furthermore, against a backdrop of chemical price erosion and continued capacity expansions, buyer/seller assessments of earnings and thus earnings multiples differed more than usual. According to White and Case, the total number […]

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