Is Albemarle Corp. overvalued or undervalued?

As of 31 July 2024, the valuation grade for Albemarle Corp. has moved from expensive to risky, indicating a shift in perception regarding its investment attractiveness. The company appears to be overvalued based on its current metrics, particularly highlighted by a P/E ratio of 7040 and an EV to EBITDA of 56.37, which are significantly higher than its peers. Additionally, the Price to Book Value stands at 0.70, suggesting that the market may not be valuing the company's assets appropriately.
In comparison to its peers, Westlake Corp. has a P/E ratio of 82.20 and EV to EBITDA of 9.98, while Avantor, Inc. shows a more favorable P/E of 11.82 and EV to EBITDA of 11.86, indicating that Albemarle's valuation is not justified when looking at industry standards. Furthermore, Albemarle's stock has underperformed relative to the S&P 500, with a year-to-date return of -5.98% compared to the index's 12.22%, reinforcing the notion that the stock may be overvalued in the current market environment.