Is Innospec, Inc. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Innospec, Inc. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, the company appears to be fairly valued. Key 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 the stock is reasonably priced relative to its earnings growth potential.
In comparison to its peers, Eastman Chemical Co. has a higher P/E ratio of 15.68, while Element Solutions, Inc. shows a significantly higher EV to EBITDA of 14.82, indicating that Innospec is competitively positioned within its industry. Notably, Innospec's stock has underperformed relative to the S&P 500, with a year-to-date return of -30.67% compared to the index's 15.47%, reinforcing the notion that the stock may be struggling to attract investor interest despite its fair valuation.