LyondellBasell Industries NV Ordinary Shares Class A (Netherlands) (LYB) Company Bio
LyondellBasell Industries is one of the world's largest plastics, chemical and refining companies manufactures whose products and technologies are used in packaging, electronics, automotive parts, home furnishings, construction materials and biofuels. The company was founded in 2005 and is based in Rotterdam, the Netherlands.
LYB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for LyondellBasell Industries NV. To summarize, we found that LyondellBasell Industries NV ranked in the 31th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of LyondellBasell Industries NV, consider:
The compound growth rate in the free cash flow of LyondellBasell Industries NV over the past 5.45 years is -0.12%; that's higher than only 12.82% of free cash flow generating stocks in the Basic Materials sector.
LyondellBasell Industries NV's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 4.14% of tickers in our DCF set.
LYB's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 4.14% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
OEC, GRA, NEU, IOSP, and USLM can be thought of as valuation peers to LYB, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
LyondellBasell ([[LYB]] +3.2%) flies near the top of the S&P 500 leaderboard following its $2B acquisition of half of Sasol's ([[SSL]] -3.1%) U.S. base chemicals business."This sale was widely anticipated and the $2B price is broadly in-line with our assessment of market expectations," Morgan Stanley analysts say.Lyondell paid a "very...
LyondellBasell (LYB) and Sasol (SSL) have entered into an agreement to form a 50/50 joint venture ((JV)) through which LyondellBasell will acquire 50% of Sasol's 1.5 MM ton ethane cracker, 0.9 MM ton low and linear-low density polyethylene plants and associated infrastructure for a total consideration of $2B.The JV will operate...