CBT PE Ratio & Valuation,Is CBT Overvalued

CBT Relative Valuation

CBT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CBT is overvalued; if below, it's undervalued.

Historical Valuation

Cabot Corp (CBT) is now in the Undervalued zone, suggesting that its current forward PE ratio of 10.56 is considered Undervalued compared with the five-year average of 11.31. The fair price of Cabot Corp (CBT) is between 75.03 to 90.59 according to relative valuation methord. Compared to the current price of 68.34 USD , Cabot Corp is Undervalued By 8.92%.

Relative Value

Fair Zone

75.03-90.59

Current Price：68.34

8.92%

Undervalued

10.56

6.34

EV/EBITDA

Cabot Corp. (CBT) has a current EV/EBITDA of 6.34. The 5-year average EV/EBITDA is 6.94. The thresholds are as follows: Strongly Undervalued below 5.64, Undervalued between 5.64 and 6.29, Fairly Valued between 7.59 and 6.29, Overvalued between 7.59 and 8.25, and Strongly Overvalued above 8.25. The current Forward EV/EBITDA of 6.34 falls within the Historic Trend Line -Fairly Valued range.

8.13

EV/EBIT

Cabot Corp. (CBT) has a current EV/EBIT of 8.13. The 5-year average EV/EBIT is 8.79. The thresholds are as follows: Strongly Undervalued below 7.07, Undervalued between 7.07 and 7.93, Fairly Valued between 9.64 and 7.93, Overvalued between 9.64 and 10.50, and Strongly Overvalued above 10.50. The current Forward EV/EBIT of 8.13 falls within the Historic Trend Line -Fairly Valued range.

1.01

Cabot Corp. (CBT) has a current PS of 1.01. The 5-year average PS is 1.02. The thresholds are as follows: Strongly Undervalued below 0.66, Undervalued between 0.66 and 0.84, Fairly Valued between 1.20 and 0.84, Overvalued between 1.20 and 1.38, and Strongly Overvalued above 1.38. The current Forward PS of 1.01 falls within the Historic Trend Line -Fairly Valued range.

7.14

P/OCF

Cabot Corp. (CBT) has a current P/OCF of 7.14. The 5-year average P/OCF is 8.14. The thresholds are as follows: Strongly Undervalued below 5.67, Undervalued between 5.67 and 6.91, Fairly Valued between 9.38 and 6.91, Overvalued between 9.38 and 10.62, and Strongly Overvalued above 10.62. The current Forward P/OCF of 7.14 falls within the Historic Trend Line -Fairly Valued range.

12.87

P/FCF

Cabot Corp. (CBT) has a current P/FCF of 12.87. The 5-year average P/FCF is 16.28. The thresholds are as follows: Strongly Undervalued below 8.14, Undervalued between 8.14 and 12.21, Fairly Valued between 20.35 and 12.21, Overvalued between 20.35 and 24.43, and Strongly Overvalued above 24.43. The current Forward P/FCF of 12.87 falls within the Historic Trend Line -Fairly Valued range.

Cabot Corp (CBT) has a current Price-to-Book (P/B) ratio of 2.33. Compared to its 3-year average P/B ratio of 3.48 , the current P/B ratio is approximately -33.04% higher. Relative to its 5-year average P/B ratio of 3.67, the current P/B ratio is about -36.46% higher. Cabot Corp (CBT) has a Forward Free Cash Flow (FCF) yield of approximately 10.07%. Compared to its 3-year average FCF yield of 6.93%, the current FCF yield is approximately 45.35% lower. Relative to its 5-year average FCF yield of 4.62% , the current FCF yield is about 117.75% lower.

2.33

P/B

Median3y

3.48

Median5y

3.67

10.07

FCF Yield

Median3y

6.93

Median5y

4.62

Competitors Valuation Multiple

The average P/S ratio for CBT's competitors is 1.39, providing a benchmark for relative valuation. Cabot Corp Corp (CBT) exhibits a P/S ratio of 1.01, which is -27.54% above the industry average. Given its robust revenue growth of -10.19%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of CBT decreased by 25.16% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 7.89 to 11.35.

The secondary factor is the Revenue Growth, contributed -10.19%to the performance.

Overall, the performance of CBT in the past 1 year is driven by P/E Change. Which is more unsustainable.

-10.19%

1.00B → 899.00M

Revenue Growth

-58.81%

14.59 → 6.01

Margin Expansion

43.84%

7.89 → 11.35

P/E Change

-25.16%

91.31 → 68.34

Mkt Cap Growth

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Frequently Asked Questions

Is Cabot Corp (CBT) currently overvalued or undervalued?

What is Cabot Corp (CBT) fair value?

CBT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Cabot Corp (CBT) is between 75.03 to 90.59 according to relative valuation methord.

How does CBT's valuation metrics compare to the industry average?

What is the current P/B ratio for Cabot Corp (CBT) as of Dec 15 2025?

As of Dec 15 2025, Cabot Corp (CBT) has a P/B ratio of 2.33. This indicates that the market values CBT at 2.33 times its book value.

What is the current FCF Yield for Cabot Corp (CBT) as of Dec 15 2025?

As of Dec 15 2025, Cabot Corp (CBT) has a FCF Yield of 10.07%. This means that for every dollar of Cabot Corp’s market capitalization, the company generates 10.07 cents in free cash flow.

What is the current Forward P/E ratio for Cabot Corp (CBT) as of Dec 15 2025?

As of Dec 15 2025, Cabot Corp (CBT) has a Forward P/E ratio of 10.56. This means the market is willing to pay $10.56 for every dollar of Cabot Corp’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Cabot Corp (CBT) as of Dec 15 2025?

As of Dec 15 2025, Cabot Corp (CBT) has a Forward P/S ratio of 1.01. This means the market is valuing CBT at $1.01 for every dollar of expected revenue over the next 12 months.

CBT Valuation