Is Element Solutions, Inc. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Element Solutions, Inc. has moved from fair to very expensive. This suggests that the company is currently overvalued. Key valuation ratios include a P/E ratio of 17, a Price to Book Value of 2.21, and an EV to EBITDA of 12.56, which indicate that the stock may not be justified at its current price level compared to its earnings and book value.
In comparison to its peers, Element Solutions has a P/E ratio of 24.64, which is significantly higher than Eastman Chemical Co. at 15.68 and Innospec, Inc. at 14.56, suggesting that it is priced at a premium relative to these competitors. Despite a strong 5-year return of 108.94%, it has underperformed the S&P 500 over the same period, which returned 95.99%. This underperformance, along with the high valuation ratios, reinforces the conclusion that Element Solutions is overvalued.