Is Element Solutions, Inc. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Element Solutions, Inc. moved from fair to very expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 17, which is significantly lower than the peer average of approximately 24.64 for similar companies in the industry. Additionally, the EV to EBITDA ratio stands at 12.56, while peers like Eastman Chemical Co. have a more favorable ratio of 10.37, further suggesting that Element Solutions is priced higher relative to its earnings potential.
In comparison to its peers, Element Solutions' PEG ratio of 0.46 indicates potential growth at a reasonable price, but this is overshadowed by the overall valuation metrics. Notably, while the company has shown a 51.77% return over the past three years, this is still below the S&P 500's return of 78.85% in the same period, reinforcing the notion that the stock may not be a compelling investment at its current price.