Is Innospec, Inc. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Innospec, Inc. moved from attractive to fair, indicating a shift in its market perception. The company appears to be fairly valued at this time. Key valuation ratios include a P/E ratio of 14, an EV to EBITDA of 10.31, and a PEG ratio of 0.82, which suggest that while the company is generating reasonable earnings relative to its price, there may be more attractive opportunities in the market.
Innospec's P/E ratio is lower than its peer Eastman Chemical Co., which has a P/E of 15.68, but higher than Ingevity Corp., which has a P/E of 11.75. The EV to EBITDA ratio of 10.31 is also competitive compared to peers, indicating that Innospec is valued reasonably within its industry. However, the company's recent stock performance has been underwhelming, with a year-to-date return of -30.67% compared to the S&P 500's positive return of 15.47%, highlighting a significant underperformance relative to the broader market.