Is Avient Corp. overvalued or undervalued?

As of 10 June 2025, the valuation grade for Avient Corp. has moved from very expensive to expensive. The company is currently overvalued, with a P/E ratio of 126, significantly higher than its peers, such as Innospec, Inc. with a P/E of 13.95 and Huntsman Corp. with a P/E of -47.91. Additionally, Avient's EV to EBITDA stands at 14.53, which is also elevated compared to the industry average.
In terms of financial performance, Avient Corp. shows a return on equity (ROE) of just 1.57% and a return on capital employed (ROCE) of 5.38%, indicating inefficiencies in generating returns relative to its equity and capital. The company's dividend yield of 212.24% appears misleading given its high valuation metrics. Recent stock performance has lagged behind the S&P 500, with a year-to-date return of -17.67% compared to the index's 2.44%, further reinforcing the view that Avient is overvalued in the current market context.