Is Eastman Chemical Co. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Eastman Chemical Co. has moved from attractive to very expensive, indicating a significant shift in its valuation outlook. The company is currently considered overvalued, with a P/E ratio of 16, a Price to Book Value of 2.72, and an EV to EBITDA of 10.92. In comparison, peers such as Element Solutions, Inc. have a much higher P/E of 24.64, while Ingevity Corp. stands at a lower P/E of 11.75, highlighting the relative overvaluation of Eastman.
The company's recent performance shows a stark contrast to the S&P 500, with a year-to-date return of -29.88% compared to the index's 14.18%, and a one-year return of -40.67% against 17.82% for the S&P 500. This underperformance reinforces the notion that Eastman Chemical Co. is currently overvalued in the market.