Is Huntsman Corp. overvalued or undervalued?

As of 31 October 2023, Huntsman Corp. has moved from a valuation grade of very expensive to risky. The company is currently assessed as undervalued, particularly given its low Price to Book Value of 0.83 and an EV to Sales ratio of 0.69, which suggests that the market may not be fully recognizing its potential. However, the EV to EBIT ratio stands at a high 49.83, indicating that while the company is undervalued based on some metrics, it also faces significant operational challenges.
In comparison to its peers, Huntsman Corp. shows a stark contrast with Avient Corp., which has a P/E ratio of 115.57, and Innospec, Inc., with an EV to EBITDA of 9.91. This highlights that Huntsman is trading at a discount relative to its industry counterparts. Additionally, the company's recent performance has been poor, with a year-to-date return of -41.71%, significantly underperforming the S&P 500, which has returned 2.44% in the same period.