Eastman Chemical is a specialty chemicals company that produces chemicals, fibers, and plastics. The Company's operations include coatings, adhesives, specialty polymers, and Inks, fibers, performance chemicals and intermediates, performance polymers, and specialty plastics. The company was founded in 1920 and is based in Kingsport, Tennessee.
EMN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Eastman Chemical Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Eastman Chemical Co ranked in the 66th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 135.83% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Eastman Chemical Co, consider:
Eastman Chemical Co's weighted average cost of capital (WACC) is 6%; for context, that number is higher than just 8.07% of tickers in our DCF set.
Relative to other stocks in its sector (Basic Materials), Eastman Chemical Co has a reliance on debt greater than 62.13% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Eastman Chemical Co? See NRP, KOP, BCC, CINR, and POL.
The materials sector includes companies engaged in the discovery, development, and processing of raw materials, which are used across many sectors and industries. Materials stocks include manufacturers of products as varied as plastic, fertilizer, paper, concrete, and metals. Materials stocks, as represented by the Materials Select Sector SPDR ETF (XLB), have underperformed the broader market, providing investors with a total return of 4.1% compared to the S&P 500's total return of 8.9% over the past 12 months. These market performance numbers and the statistics in the tables below are as of May 27.