ESI Valuation

Element Solutions Inc

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25.670

0(0.000%)1D

Overview
Forecast
Valuation
Earnings

ESI Relative Valuation

ESI'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, ESI is overvalued; if below, it's undervalued.

Historical Valuation

Element Solutions Inc (ESI) is now in the Fair zone, suggesting that its current forward PE ratio of 16.75 is considered Fairly compared with the five-year average of 15.05. The fair price of Element Solutions Inc (ESI) is between 21.69 to 26.16 according to relative valuation methord.

Relative Value

Fair Zone

21.69-26.16

Current Price：25.67

Fair

16.75

Trailing

Forward

13.25

EV/EBITDA

Element Solutions Inc. (ESI) has a current EV/EBITDA of 13.25. The 5-year average EV/EBITDA is 12.71. The thresholds are as follows: Strongly Undervalued below 10.22, Undervalued between 10.22 and 11.46, Fairly Valued between 13.95 and 11.46, Overvalued between 13.95 and 15.19, and Strongly Overvalued above 15.19. The current Forward EV/EBITDA of 13.25 falls within the Historic Trend Line -Fairly Valued range.

14.39

EV/EBIT

Element Solutions Inc. (ESI) has a current EV/EBIT of 14.39. The 5-year average EV/EBIT is 13.81. The thresholds are as follows: Strongly Undervalued below 11.16, Undervalued between 11.16 and 12.49, Fairly Valued between 15.13 and 12.49, Overvalued between 15.13 and 16.46, and Strongly Overvalued above 16.46. The current Forward EV/EBIT of 14.39 falls within the Historic Trend Line -Fairly Valued range.

2.48

Element Solutions Inc. (ESI) has a current PS of 2.48. The 5-year average PS is 2.14. The thresholds are as follows: Strongly Undervalued below 1.49, Undervalued between 1.49 and 1.81, Fairly Valued between 2.46 and 1.81, Overvalued between 2.46 and 2.78, and Strongly Overvalued above 2.78. The current Forward PS of 2.48 falls within the Overvalued range.

17.06

P/OCF

Element Solutions Inc. (ESI) has a current P/OCF of 17.06. The 5-year average P/OCF is 14.44. The thresholds are as follows: Strongly Undervalued below 5.33, Undervalued between 5.33 and 9.89, Fairly Valued between 19.00 and 9.89, Overvalued between 19.00 and 23.56, and Strongly Overvalued above 23.56. The current Forward P/OCF of 17.06 falls within the Historic Trend Line -Fairly Valued range.

20.53

P/FCF

Element Solutions Inc. (ESI) has a current P/FCF of 20.53. The 5-year average P/FCF is 17.11. The thresholds are as follows: Strongly Undervalued below 6.39, Undervalued between 6.39 and 11.75, Fairly Valued between 22.47 and 11.75, Overvalued between 22.47 and 27.83, and Strongly Overvalued above 27.83. The current Forward P/FCF of 20.53 falls within the Historic Trend Line -Fairly Valued range.

Element Solutions Inc (ESI) has a current Price-to-Book (P/B) ratio of 2.36. Compared to its 3-year average P/B ratio of 2.26 , the current P/B ratio is approximately 4.35% higher. Relative to its 5-year average P/B ratio of 2.18, the current P/B ratio is about 8.38% higher. Element Solutions Inc (ESI) has a Forward Free Cash Flow (FCF) yield of approximately 4.35%. Compared to its 3-year average FCF yield of 5.29%, the current FCF yield is approximately -17.83% lower. Relative to its 5-year average FCF yield of 5.16% , the current FCF yield is about -15.78% lower.

2.36

P/B

Median3y

2.26

Median5y

2.18

4.35

FCF Yield

Median3y

5.29

Median5y

5.16

Competitors Valuation Multiple

The average P/S ratio for ESI's competitors is 2.02, providing a benchmark for relative valuation. Element Solutions Inc Corp (ESI) exhibits a P/S ratio of 2.48, which is 22.62% above the industry average. Given its robust revenue growth of 2.04%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

ESI.N

Element Solutions Inc

Perimeter Solutions Inc

Performance Decomposition

Market capitalization of ESI decreased by 4.00% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 18.11 to 25.93.

The secondary factor is the Revenue Growth, contributed 2.04%to the performance.

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

2.04%

612.70M → 625.20M

Revenue Growth

-49.23%

14.97 → 7.60

Margin Expansion

43.19%

18.11 → 25.93

P/E Change

-4.00%