Is NewMarket Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for NewMarket Corp. has moved from very expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued based on its current metrics, with a P/E ratio of 13, a PEG ratio of 0.59, and an EV to EBITDA ratio of 9.55. In comparison, peers such as Westlake Corp. have a significantly higher P/E of 82.20, while Avantor, Inc. shows a more attractive P/E of 11.82, reinforcing NewMarket's relative value.
Despite some recent underperformance against the S&P 500, with a 1-week return of -1.36% compared to the index's 1.70%, NewMarket has demonstrated strong long-term performance, achieving a YTD return of 46.30% versus the S&P 500's 13.30%. This suggests that while the stock may have faced short-term volatility, its overall valuation metrics and performance indicate it is currently undervalued.