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 towards a more favorable assessment. The company appears undervalued, supported by a P/E ratio of 9, an EV to EBITDA ratio of 6.50, and a Price to Book Value of 2.83. In comparison to peers, Cabot Corp. has a lower P/E ratio than Westlake Corp. at 82.20 and a more favorable EV to EBITDA ratio than Albemarle Corp. at 26.19, highlighting its relative attractiveness in the specialty chemicals industry.
Despite recent stock performance showing a decline of 39.37% over the past year compared to a 14.08% return for the S&P 500, the company's strong ROCE of 25.57% and ROE of 32.92% suggest solid operational efficiency and profitability. This combination of attractive valuation ratios and strong financial metrics reinforces the conclusion that Cabot Corp. is currently undervalued.