Is Element Solutions, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Element Solutions, Inc. moved from fair to very expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 17, a Price to Book Value of 2.21, and an EV to EBITDA of 12.56, which are all relatively high compared to its peers. For instance, Eastman Chemical Co. has a P/E of 15.68, while Ingevity Corp. has a much lower EV to EBITDA of 9.41, highlighting Element Solutions' premium valuation.
In terms of recent performance, Element Solutions has underperformed against the S&P 500 over various periods, with a 1-year return of 2.25% compared to the S&P 500's 17.82%. This underperformance reinforces the view that the stock is overvalued, as investors may be better served by alternatives within the sector.