Is Cabot Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Cabot Corp. has moved from expensive to attractive, indicating a shift in its perceived value. The company appears undervalued, with a P/E ratio of 9, significantly lower than its peers such as Avantor, Inc. at 11.82 and NewMarket Corp. at 16.30. Additionally, Cabot Corp. has an EV to EBITDA ratio of 6.50, which is more favorable compared to the industry average, suggesting a strong valuation relative to earnings.
The company also boasts impressive returns on capital, with a ROCE of 25.57% and a ROE of 32.92%, highlighting its efficiency in generating profits. Despite recent stock performance lagging behind the S&P 500, with a year-to-date return of -23.72% compared to the S&P's 13.30%, the valuation metrics suggest that Cabot Corp. is positioned well for potential recovery.