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, given its P/E ratio of 16, which is significantly lower than the industry average, and an EV to EBITDA ratio of 10.92, suggesting a more appealing valuation compared to peers. Additionally, the PEG ratio stands at 3.28, which, while high, reflects growth expectations that may not be fully priced in.
In comparison to peers, Eastman Chemical Co. has a more attractive P/E ratio than Element Solutions, Inc. at 24.64 and Avient Corp. at 79.68, which indicates that it is trading at a discount relative to these companies. Furthermore, the company's ROE of 16.69% and ROCE of 13.16% demonstrate solid profitability metrics. Despite recent underperformance, with a 1Y return of -44.01% compared to the S&P 500's 14.08%, the current valuation suggests potential for recovery and growth.