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 assessment of the company's value. The company appears to be undervalued, with a 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, while its EV to EBITDA ratio of 10.31 is competitive against peers like Element Solutions, Inc. at 14.82.
Innospec's return performance has been weak, with a year-to-date return of -32.69%, significantly underperforming the S&P 500's 13.30% during the same period. This underperformance, combined with its attractive valuation ratios, reinforces the notion that the stock may be undervalued in the current market environment.