Ashland

China Overcapacity And Tightening Environmental Rules Will Squeeze Margins

AnalystLowTarget

Not Invested

Community Contributor

Published

22 Jun 25

Updated

14 Dec 25

n/a

AnalystLowTarget's Fair Value

n/a

-20.9%

1.0%

-20.9%

1.0%

You can edit this narrative until Dec 15 2:08 AM. Then, changes will post as Updates.

Author's Valuation

US$5116.0% overvalued

AnalystLowTarget Fair Value

Narrative

Updates1

Shared on 14 Dec 25

Fair value Decreased 3.77%

ASH: Future Margins Will Likely Deteriorate Despite Stronger Revenue Outlook

Analysts have trimmed their price target on Ashland by approximately $2.00 to reflect expectations for stronger top line growth, but meaningfully lower profit margins that together warrant a higher future earnings multiple. What's in the News Ashland issued full fiscal 2026 guidance, projecting sales of $1,835 million to $1,905 million, implying organic growth of approximately one to five percent over the prior year (company guidance).

AnalystLowTarget Fair Value

US$51

16.0% overvalued

Future estimation in

% p.a.

Decrease

Increase

Current revenue growth rate

3.00%

Chemicals revenue growth rate

0.61%

Risk Level (Discount Rate)

Our default considers factors like the company's size, volatility, profitablity and country of operation.

Decrease

Increase

Current discount rate

8.41%

Calculation

US$189.70m

Earnings '28

14.03x

PE Ratio '28

US$2.66b

Market Cap '28

US$2.66b

Market Cap '28

41.59m

No. shares '28

US$64.01

Share Price '28

US$64.01 Share Price '28

Discounted to 2025 @ 8.39% p.a.

US$50.28

Fair Value '25