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 15.84 is considered Fairly compared with the five-year average of 15.28. The fair price of Element Solutions Inc (ESI) is between 23.18 to 27.57 according to relative valuation methord.
Relative Value
Fair Zone
23.18-27.57
Current Price：25.95
Fair
16.03
PE
1Y
3Y
5Y
Trailing
Forward
12.19
EV/EBITDA
Element Solutions Inc. (ESI) has a current EV/EBITDA of 12.19. The 5-year average EV/EBITDA is 12.84. The thresholds are as follows: Strongly Undervalued below 10.71, Undervalued between 10.71 and 11.78, Fairly Valued between 13.91 and 11.78, Overvalued between 13.91 and 14.98, and Strongly Overvalued above 14.98. The current Forward EV/EBITDA of 12.19 falls within the Historic Trend Line -Fairly Valued range.
13.76
EV/EBIT
Element Solutions Inc. (ESI) has a current EV/EBIT of 13.76. The 5-year average EV/EBIT is 13.98. The thresholds are as follows: Strongly Undervalued below 11.73, Undervalued between 11.73 and 12.86, Fairly Valued between 15.11 and 12.86, Overvalued between 15.11 and 16.23, and Strongly Overvalued above 16.23. The current Forward EV/EBIT of 13.76 falls within the Historic Trend Line -Fairly Valued range.
2.29
PS
Element Solutions Inc. (ESI) has a current PS of 2.29. The 5-year average PS is 2.18. The thresholds are as follows: Strongly Undervalued below 1.58, Undervalued between 1.58 and 1.88, Fairly Valued between 2.47 and 1.88, Overvalued between 2.47 and 2.77, and Strongly Overvalued above 2.77. The current Forward PS of 2.29 falls within the Historic Trend Line -Fairly Valued range.
16.12
P/OCF
Element Solutions Inc. (ESI) has a current P/OCF of 16.12. The 5-year average P/OCF is 15.34. The thresholds are as follows: Strongly Undervalued below 9.54, Undervalued between 9.54 and 12.44, Fairly Valued between 18.24 and 12.44, Overvalued between 18.24 and 21.14, and Strongly Overvalued above 21.14. The current Forward P/OCF of 16.12 falls within the Historic Trend Line -Fairly Valued range.
19.21
P/FCF
Element Solutions Inc. (ESI) has a current P/FCF of 19.21. The 5-year average P/FCF is 18.19. The thresholds are as follows: Strongly Undervalued below 11.44, Undervalued between 11.44 and 14.82, Fairly Valued between 21.57 and 14.82, Overvalued between 21.57 and 24.94, and Strongly Overvalued above 24.94. The current Forward P/FCF of 19.21 falls within the Historic Trend Line -Fairly Valued range.
Element Solutions Inc (ESI) has a current Price-to-Book (P/B) ratio of 2.37. Compared to its 3-year average P/B ratio of 2.31 , the current P/B ratio is approximately 2.49% higher. Relative to its 5-year average P/B ratio of 2.24, the current P/B ratio is about 5.83% higher. Element Solutions Inc (ESI) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 5.15%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 5.00% , the current FCF yield is about -100.00% lower.
2.40
P/B
Median3y
2.31
Median5y
2.24
4.30
FCF Yield
Median3y
5.15
Median5y
5.00
Competitors Valuation Multiple
The average P/S ratio for ESI's competitors is , providing a benchmark for relative valuation. Element Solutions Inc Corp (ESI) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 1.72%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ESI increased by 3.30% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 25.09 to 26.57.
The secondary factor is the Revenue Growth, contributed 1.72%to the performance.
Overall, the performance of ESI in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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