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. The company appears overvalued given its current metrics, particularly with a P/E ratio of 17, which is significantly lower than the peer average of approximately 24.64 for comparable companies like Eastman Chemical Co., which has a P/E of 15.68, and Innospec, Inc. at 14.56. Additionally, the EV to EBITDA ratio stands at 12.56, while peers like Perimeter Solutions SA are at 27.59, indicating a premium valuation for Element Solutions.
The PEG ratio of 0.46 suggests potential growth, but the high dividend yield of 138.80% may not be sustainable, raising concerns about the company's long-term financial health. In terms of recent performance, Element Solutions has underperformed the S&P 500 year-to-date with a return of 2.95% compared to 15.47%. Overall, the combination of high valuation ratios relative to peers and recent stock performance supports the conclusion that Element Solutions, Inc. is currently overvalued.