Is NewMarket Corp. overvalued or undervalued?

As of 3 February 2025, the valuation grade for NewMarket Corp. has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently undervalued, with a P/E ratio of 13, which is significantly lower than its peers such as Westlake Corp. at 20.43 and ChampionX Corp. at 15.99. Additionally, NewMarket's EV to EBITDA stands at 9.55, while its PEG ratio is an impressive 0.59, suggesting strong growth potential relative to its price.
In comparison to its peers, NewMarket Corp. demonstrates a favorable position with a lower P/E and PEG ratio, indicating that it is trading at a discount relative to its growth prospects. The company's ROCE of 25.34% and ROE of 31.57% further highlight its efficient use of capital and strong profitability. Notably, NewMarket has outperformed the S&P 500 with a year-to-date return of 27.93% compared to the index's 2.44%, reinforcing its attractiveness as an investment opportunity.