Is LyondellBasell Industries NV overvalued or undervalued?

As of 31 January 2025, LyondellBasell Industries NV has moved from a fair to a very attractive valuation grade. The company is currently undervalued, with a P/E ratio of 10, which is significantly lower than the industry average, indicating potential for price appreciation. Key ratios include a Price to Book Value of 1.52, an EV to EBIT of 13.51, and an EV to EBITDA of 7.87, all suggesting that the stock is trading at a discount compared to its peers.
In comparison to its industry counterparts, LyondellBasell's P/E ratio is notably lower than Linde Plc's 35.40 and Ecolab, Inc.'s 41.56, both of which are rated fair. Additionally, LyondellBasell's EV to EBITDA ratio of 7.87 is more favorable than that of Air Products & Chemicals, Inc., which is considered expensive at 19.38. Despite recent underperformance against the S&P 500, with a year-to-date return of -22.80% compared to the index's 2.44%, the company's valuation metrics indicate that it presents a compelling investment opportunity at its current price of 57.34.