Is LyondellBasell Industries NV overvalued or undervalued?

As of 31 January 2025, LyondellBasell Industries NV has moved from an expensive to a very attractive valuation grade. The company appears undervalued, with a P/E ratio of 10, a Price to Book Value of 1.52, and an EV to EBITDA ratio of 7.87, indicating that it is trading at a lower valuation compared to its earnings and asset value. In comparison, its peer Dow, Inc. has a significantly higher P/E ratio of 96.79, suggesting that LyondellBasell may present a more appealing investment opportunity within the specialty chemicals industry.
Despite the attractive valuation metrics, LyondellBasell has underperformed against the S&P 500, with a year-to-date return of -29.06% compared to the index's 12.22%. This stark contrast in performance highlights the potential for recovery as the company’s valuation metrics suggest it is undervalued relative to its peers.