Is Avient Corp. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Avient Corp. has moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. The company appears to be overvalued, particularly given its high P/E ratio of 126, which starkly contrasts with peers like Eastman Chemical Co. at 15.68 and Element Solutions, Inc. at 24.64. Additionally, Avient's EV to EBITDA stands at 14.53, while its EV to Sales is 1.90, both of which suggest a premium valuation compared to industry norms.
In terms of performance, Avient Corp. has underperformed relative to the S&P 500, with a year-to-date return of -20.14% compared to the index's 15.47%. This trend continues over longer periods, as evidenced by a 1-year return of -32.11% against the S&P 500's 16.90%. Overall, the combination of high valuation ratios and poor stock performance reinforces the conclusion that Avient Corp. is overvalued in the current market environment.