Is Eastman Chemical Co. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Eastman Chemical Co. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its P/E ratio of 16, which is notably higher than its peer, Innospec, Inc., with a P/E of 14.56, and significantly lower than Element Solutions, Inc., which has a P/E of 24.64. Additionally, Eastman’s EV to EBITDA ratio stands at 10.92, while its PEG ratio is quite high at 3.28, suggesting that the stock may not be a good value relative to its growth prospects.
In comparison to its peers, Eastman Chemical Co. shows a less favorable valuation profile, particularly when juxtaposed with the fair valuations of Element Solutions and Avient Corp. Furthermore, the company's recent stock performance has lagged significantly behind the S&P 500, with a year-to-date return of -31.34% compared to the S&P 500's 15.47%. This trend reinforces the notion that Eastman Chemical Co. is currently overvalued.