Is Olin Corp. overvalued or undervalued?

As of 23 October 2024, Olin Corp. has moved from a fair to an expensive valuation grade. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 31, significantly higher than peers like RPM International, which has a P/E of 22.76, and Axalta Coating Systems, which boasts a more attractive P/E of 17.41. Additionally, Olin's EV to EBITDA ratio is 6.18, while RPM's is 16.14, indicating a relative overvaluation.
The company's financial ratios further support this conclusion, with a Price to Book Value of 1.15 and a ROCE of only 6.58%, which is low compared to industry standards. Furthermore, Olin's recent stock performance has been poor, with a year-to-date return of -41.92%, contrasting sharply with a 2.44% gain in the S&P 500. This underperformance, coupled with its high valuation ratios, suggests that Olin Corp. is currently overvalued in the market.