Is Eastman Chemical Co. overvalued or undervalued?

As of 10 September 2025, the valuation grade for Eastman Chemical Co. has moved from very expensive to attractive, indicating a shift towards a more favorable assessment. The company is currently considered undervalued based on its financial metrics. Key ratios include a P/E ratio of 16, an EV to EBITDA ratio of 10.92, and a Price to Book Value of 2.72, which suggest that Eastman is trading at a reasonable valuation compared to its peers.
In comparison to its peers, Eastman Chemical Co. has a lower P/E ratio than Element Solutions, Inc. at 24.64 and Avient Corp. at 79.68, both of which are considered expensive. Additionally, Eastman's EV to EBITDA ratio of 10.92 is more attractive than Ingevity Corp.'s risky valuation of 9.41. Despite its attractive valuation, Eastman has underperformed against the S&P 500, with a year-to-date return of -27.22% compared to the index's 12.22%, highlighting the potential for recovery as market conditions improve.