NEU Valuation

NewMarket Corp

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763.740

-20.67(-2.635%)1D

NEU Relative Valuation

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

Historical Valuation

NewMarket Corp (NEU) is now in the Overvalued zone, suggesting that its current forward PE ratio of 24.49 is considered Overvalued compared with the five-year average of 15.83. The fair price of NewMarket Corp (NEU) is between 574.36 to 772.13 according to relative valuation methord. Compared to the current price of 784.41 USD , NewMarket Corp is Overvalued By 1.59%.

Relative Value

Fair Zone

574.36-772.13

Current Price：784.41

1.59%

Overvalued

24.49

Trailing

Forward

14.06

EV/EBITDA

NewMarket Corp. (NEU) has a current EV/EBITDA of 14.06. The 5-year average EV/EBITDA is 4.68. The thresholds are as follows: Strongly Undervalued below -7.26, Undervalued between -7.26 and -1.29, Fairly Valued between 10.65 and -1.29, Overvalued between 10.65 and 16.62, and Strongly Overvalued above 16.62. The current Forward EV/EBITDA of 14.06 falls within the Overvalued range.

19.59

EV/EBIT

NewMarket Corp. (NEU) has a current EV/EBIT of 19.59. The 5-year average EV/EBIT is 13.51. The thresholds are as follows: Strongly Undervalued below 7.28, Undervalued between 7.28 and 10.39, Fairly Valued between 16.62 and 10.39, Overvalued between 16.62 and 19.73, and Strongly Overvalued above 19.73. The current Forward EV/EBIT of 19.59 falls within the Overvalued range.

784.41

NewMarket Corp. (NEU) has a current PS of 784.41. The 5-year average PS is 6.80. The thresholds are as follows: Strongly Undervalued below -115.50, Undervalued between -115.50 and -54.35, Fairly Valued between 67.95 and -54.35, Overvalued between 67.95 and 129.10, and Strongly Overvalued above 129.10. The current Forward PS of 784.41 falls within the Strongly Overvalued range.

17.55

P/OCF

NewMarket Corp. (NEU) has a current P/OCF of 17.55. The 5-year average P/OCF is 7.68. The thresholds are as follows: Strongly Undervalued below -5.70, Undervalued between -5.70 and 0.99, Fairly Valued between 14.37 and 0.99, Overvalued between 14.37 and 21.06, and Strongly Overvalued above 21.06. The current Forward P/OCF of 17.55 falls within the Overvalued range.

21.53

P/FCF

NewMarket Corp. (NEU) has a current P/FCF of 21.53. The 5-year average P/FCF is 9.34. The thresholds are as follows: Strongly Undervalued below -6.96, Undervalued between -6.96 and 1.19, Fairly Valued between 17.50 and 1.19, Overvalued between 17.50 and 25.65, and Strongly Overvalued above 25.65. The current Forward P/FCF of 21.53 falls within the Overvalued range.

NewMarket Corp (NEU) has a current Price-to-Book (P/B) ratio of 4.36. Compared to its 3-year average P/B ratio of 4.44 , the current P/B ratio is approximately -1.86% higher. Relative to its 5-year average P/B ratio of 4.55, the current P/B ratio is about -4.18% higher. NewMarket Corp (NEU) has a Forward Free Cash Flow (FCF) yield of approximately 0.07%. Compared to its 3-year average FCF yield of 7.13%, the current FCF yield is approximately -98.96% lower. Relative to its 5-year average FCF yield of 5.54% , the current FCF yield is about -98.67% lower.

4.36

P/B

Median3y

4.44

Median5y

4.55

0.07

FCF Yield

Median3y

7.13

Median5y

5.54

Competitors Valuation Multiple

The average P/S ratio for NEU's competitors is 166.37, providing a benchmark for relative valuation. NewMarket Corp Corp (NEU) exhibits a P/S ratio of 784.41, which is 371.50% above the industry average. Given its robust revenue growth of -4.78%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of NEU increased by 47.01% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 9.62 to 16.57.

The secondary factor is the Revenue Growth, contributed -4.78%to the performance.

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

-4.78%

724.95M → 690.31M

Revenue Growth

-20.38%

18.25 → 14.53

Margin Expansion

72.17%

9.62 → 16.57

P/E Change

47.01%