Solvay (ENXTBR:SOLB): Reevaluating Valuation Following a Slight Increase in Share Price

Written by Emily J. Thompson, Senior Investment Analyst

Source: Yahoo Finance

Updated: Dec 07 2025

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Source: Yahoo Finance

Current Share Performance: Solvay's share price has shown a slight recovery with a 2.2% return over the past month, but a 9.6% decline over the past year indicates ongoing investor caution regarding growth and cyclical risks.
Valuation Insights: The fair value of Solvay is estimated at €27.73, suggesting it is currently undervalued, although its price-to-earnings ratio of 18.5x is slightly above the sector average, indicating limited safety if earnings fall short.
Operational Potential: The ramp-up of competitive soda ash and rare earth capacities could enhance profitability and market share, contingent on demand normalization and supply adjustments, which may not be fully recognized in the current valuation.
Risks and Considerations: Persistent pricing pressures and environmental liabilities pose risks to margins and cash flow, which could undermine the case for Solvay's undervaluation, warranting careful consideration by investors.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.