Is Cabot Corp. overvalued or undervalued?

As of 31 January 2025, the valuation grade for Cabot Corp. has moved from fair to attractive, indicating a positive shift in its market position. The company is currently considered undervalued, with a P/E ratio of 9, which is significantly lower than its peer, The Chemours Co., which has a P/E of 11.48. Additionally, Cabot Corp. shows strong financial metrics, including an EV to EBITDA ratio of 6.50 and a return on equity (ROE) of 32.92%, suggesting robust profitability compared to its industry peers.
In comparison to The Chemours Co., which is rated very attractive, Cabot Corp. stands out with a lower valuation yet strong performance indicators. The current price of $74.57 is below its 52-week high of $117.46, reflecting potential upside for investors. Despite a year-to-date return of -18.33%, the long-term performance over five years shows a gain of 101.21%, which may indicate resilience and growth potential in the future.