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 more favorable assessment of its value. The company appears undervalued, particularly when considering its P/E ratio of 16, which is significantly lower than the peer average of 15.68, and its EV to EBITDA ratio of 10.92, also below the peer average of 10.37. Additionally, Eastman boasts a robust ROE of 16.69%, suggesting effective management of equity.
In comparison to its peers, Element Solutions, Inc. has a P/E ratio of 24.64, while Innospec, Inc. shows an attractive valuation with a P/E of 14.56. Despite recent stock performance showing a decline, with a YTD return of -32.90% compared to the S&P 500's 13.30%, the current valuation metrics suggest that Eastman Chemical Co. may present a compelling investment opportunity.