Is Eastman Chemical Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Eastman Chemical Co. has moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued, particularly when considering its P/E ratio of 16, which is significantly lower than the average of its peers, such as Element Solutions, Inc. at 24.64 and Avient Corp. at 79.68. Additionally, Eastman has an EV to EBITDA ratio of 10.92, which is more appealing compared to the industry average, suggesting better value relative to earnings before interest, taxes, depreciation, and amortization.
In terms of performance, Eastman Chemical Co. has experienced a challenging year, with a 1-year return of -44.01%, compared to the S&P 500's return of 14.08%, highlighting the stock's underperformance in the market. However, with a PEG ratio of 3.28 and a dividend yield of 243.20%, the company offers potential for future growth and income, reinforcing its attractive valuation amidst the current market conditions.