Is Innospec, Inc. overvalued or undervalued?

As of 10 September 2025, the valuation grade for Innospec, Inc. has moved from fair to attractive, indicating a more favorable assessment of its stock. The company appears to be undervalued, particularly when considering its P/E ratio of 14, which is lower than the peer average of 15.68 for Eastman Chemical Co. Additionally, Innospec's PEG ratio of 0.82 suggests that it is priced attractively relative to its growth potential, while its EV to EBITDA ratio of 10.31 is competitive compared to peers like Element Solutions, Inc. at 14.82.
In terms of peer comparison, Innospec's P/E ratio is notably lower than that of Eastman Chemical Co. and Element Solutions, Inc., which further supports the notion of it being undervalued. Despite recent stock performance lagging behind the S&P 500, with a year-to-date return of -25.41% compared to the index's 12.22%, the attractive valuation metrics suggest that the stock may present a buying opportunity for investors looking for value in the Chemicals & Petrochemicals sector.