Is Ashland, Inc. overvalued or undervalued?

As of 30 April 2025, the valuation grade for Ashland, Inc. has moved from expensive to risky, indicating a shift in perception regarding its financial health and market position. Based on the available metrics, the company appears to be overvalued. Key ratios include a Price to Book Value of 0.90, an EV to EBITDA of 8.30, and a Dividend Yield of 182.88%, which, despite being high, may not sufficiently compensate for the company's negative return on equity of -2.42%.
In comparison to peers, Ashland's valuation metrics are concerning; for instance, The J. M. Smucker Co. has a P/E ratio of 23.79 and an EV to EBITDA of 12.12, while Conagra Brands, Inc. shows a more attractive EV to EBITDA of 9.96. These comparisons suggest that Ashland is not only lagging behind its peers but also carries a higher risk profile. Although recent stock performance data is not available, the overall valuation story indicates that investors should approach Ashland with caution given its current standing in the market.