SQM Relative Valuation
SQM'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, SQM is overvalued; if below, it's undervalued.
Historical Valuation
Sociedad Quimica y Minera de Chile SA (SQM) is now in the Fair zone, suggesting that its current forward PS ratio of 3.73 is considered Fairly compared with the five-year average of -197.34. The fair price of Sociedad Quimica y Minera de Chile SA (SQM) is between 47.48 to 79.31 according to relative valuation methord.
Relative Value
Fair Zone
47.48-79.31
Current Price：74.53
Fair
18.27
PE
1Y
3Y
5Y
11.12
EV/EBITDA
Sociedad Quimica y Minera de Chile SA. (SQM) has a current EV/EBITDA of 11.12. The 5-year average EV/EBITDA is 7.56. The thresholds are as follows: Strongly Undervalued below 1.38, Undervalued between 1.38 and 4.47, Fairly Valued between 10.64 and 4.47, Overvalued between 10.64 and 13.73, and Strongly Overvalued above 13.73. The current Forward EV/EBITDA of 11.12 falls within the Overvalued range.
13.83
EV/EBIT
Sociedad Quimica y Minera de Chile SA. (SQM) has a current EV/EBIT of 13.83. The 5-year average EV/EBIT is 9.45. The thresholds are as follows: Strongly Undervalued below 0.30, Undervalued between 0.30 and 4.88, Fairly Valued between 14.02 and 4.88, Overvalued between 14.02 and 18.60, and Strongly Overvalued above 18.60. The current Forward EV/EBIT of 13.83 falls within the Historic Trend Line -Fairly Valued range.
3.73
PS
Sociedad Quimica y Minera de Chile SA. (SQM) has a current PS of 3.73. The 5-year average PS is 2.91. The thresholds are as follows: Strongly Undervalued below 0.92, Undervalued between 0.92 and 1.92, Fairly Valued between 3.91 and 1.92, Overvalued between 3.91 and 4.90, and Strongly Overvalued above 4.90. The current Forward PS of 3.73 falls within the Historic Trend Line -Fairly Valued range.
16.57
P/OCF
Sociedad Quimica y Minera de Chile SA. (SQM) has a current P/OCF of 16.57. The 5-year average P/OCF is 10.00. The thresholds are as follows: Strongly Undervalued below -0.46, Undervalued between -0.46 and 4.77, Fairly Valued between 15.22 and 4.77, Overvalued between 15.22 and 20.45, and Strongly Overvalued above 20.45. The current Forward P/OCF of 16.57 falls within the Overvalued range.
107.52
P/FCF
Sociedad Quimica y Minera de Chile SA. (SQM) has a current P/FCF of 107.52. The 5-year average P/FCF is 75.84. The thresholds are as follows: Strongly Undervalued below -862.59, Undervalued between -862.59 and -393.37, Fairly Valued between 545.06 and -393.37, Overvalued between 545.06 and 1014.27, and Strongly Overvalued above 1014.27. The current Forward P/FCF of 107.52 falls within the Historic Trend Line -Fairly Valued range.
Sociedad Quimica y Minera de Chile SA (SQM) has a current Price-to-Book (P/B) ratio of 3.63. Compared to its 3-year average P/B ratio of 2.87 , the current P/B ratio is approximately 26.24% higher. Relative to its 5-year average P/B ratio of 4.20, the current P/B ratio is about -13.69% higher. Sociedad Quimica y Minera de Chile SA (SQM) has a Forward Free Cash Flow (FCF) yield of approximately 0.33%. Compared to its 3-year average FCF yield of 0.90%, the current FCF yield is approximately -63.33% lower. Relative to its 5-year average FCF yield of 1.59% , the current FCF yield is about -79.28% lower.
3.63
P/B
Median3y
2.87
Median5y
4.20
0.33
FCF Yield
Median3y
0.90
Median5y
1.59
Competitors Valuation Multiple
The average P/S ratio for SQM's competitors is 3.65, providing a benchmark for relative valuation. Sociedad Quimica y Minera de Chile SA Corp (SQM) exhibits a P/S ratio of 3.73, which is 2.09% above the industry average. Given its robust revenue growth of 8.93%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of SQM increased by 88.49% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 25.37 to 37.97.
The secondary factor is the Margin Expansion, contributed 29.90%to the performance.
Overall, the performance of SQM in the past 1 year is driven by P/E Change. Which is more unsustainable.
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Frequently Asked Questions
Is Sociedad Quimica y Minera de Chile SA (SQM) currently overvalued or undervalued?
Sociedad Quimica y Minera de Chile SA (SQM) is now in the Fair zone, suggesting that its current forward PS ratio of 3.73 is considered Fairly compared with the five-year average of -197.34. The fair price of Sociedad Quimica y Minera de Chile SA (SQM) is between 47.48 to 79.31 according to relative valuation methord.
What is Sociedad Quimica y Minera de Chile SA (SQM) fair value?
SQM'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 Sociedad Quimica y Minera de Chile SA (SQM) is between 47.48 to 79.31 according to relative valuation methord.
How does SQM's valuation metrics compare to the industry average?
The average P/S ratio for SQM's competitors is 3.65, providing a benchmark for relative valuation. Sociedad Quimica y Minera de Chile SA Corp (SQM) exhibits a P/S ratio of 3.73, which is 2.09% above the industry average. Given its robust revenue growth of 8.93%, this premium appears unsustainable.
What is the current P/B ratio for Sociedad Quimica y Minera de Chile SA (SQM) as of Jan 07 2026?
As of Jan 07 2026, Sociedad Quimica y Minera de Chile SA (SQM) has a P/B ratio of 3.63. This indicates that the market values SQM at 3.63 times its book value.
What is the current FCF Yield for Sociedad Quimica y Minera de Chile SA (SQM) as of Jan 07 2026?
As of Jan 07 2026, Sociedad Quimica y Minera de Chile SA (SQM) has a FCF Yield of 0.33%. This means that for every dollar of Sociedad Quimica y Minera de Chile SA’s market capitalization, the company generates 0.33 cents in free cash flow.
What is the current Forward P/E ratio for Sociedad Quimica y Minera de Chile SA (SQM) as of Jan 07 2026?
As of Jan 07 2026, Sociedad Quimica y Minera de Chile SA (SQM) has a Forward P/E ratio of 18.27. This means the market is willing to pay $18.27 for every dollar of Sociedad Quimica y Minera de Chile SA’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Sociedad Quimica y Minera de Chile SA (SQM) as of Jan 07 2026?
As of Jan 07 2026, Sociedad Quimica y Minera de Chile SA (SQM) has a Forward P/S ratio of 3.73. This means the market is valuing SQM at $3.73 for every dollar of expected revenue over the next 12 months.