Is Innospec, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Innospec, Inc. has moved from fair to attractive, indicating a more favorable outlook. The company appears undervalued, particularly when considering its P/E ratio of 14, which is lower than the peer average of approximately 15.68 for Eastman Chemical Co. Additionally, Innospec's PEG ratio of 0.82 suggests that it may be undervalued relative to its growth prospects. The EV to EBITDA ratio stands at 10.31, which is competitive compared to peers like Element Solutions, Inc. at 14.82.
In terms of peer comparison, Innospec's valuation metrics are more attractive than those of Element Solutions, Inc., which has a significantly higher P/E ratio of 24.64, and Avient Corp., which is at 79.68. Despite the attractive valuation, Innospec has underperformed against the S&P 500, with a year-to-date return of -32.69% compared to the index's 13.30%. This stark contrast in performance reinforces the notion that the stock may be undervalued relative to its peers and the broader market.