Is NewMarket Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for NewMarket Corp. moved from very expensive to attractive, indicating a shift in perception towards the company's value. Based on the current metrics, NewMarket Corp. appears to be undervalued. The P/E ratio stands at 13, significantly lower than the peer average of 16.30, while the EV to EBITDA ratio of 9.55 also compares favorably against peers like Westlake Corp. at 11.85. Additionally, the PEG ratio of 0.59 suggests that the stock is priced attractively relative to its growth prospects.
In comparison to its peers, NewMarket Corp. shows a strong return on equity (ROE) of 31.57% and a return on capital employed (ROCE) of 25.34%, which are indicative of efficient management and profitability. Notably, while NewMarket Corp. has experienced a year-to-date return of 46.30%, outperforming the S&P 500's 13.30%, it has lagged in the short term with a 1-week return of -1.36% compared to the S&P 500's 1.70%. Overall, the metrics suggest that NewMarket Corp. is positioned well in the specialty chemicals industry and is currently undervalued relative to its peers.