Arcadium Lithium plc

BUL:8LV Stock Report

Market Cap: €2.7b

Livent Valuation

Is 8LV undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 8LV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 8LV (€16.57) is trading below our estimate of fair value (€54.29)

Significantly Below Fair Value: 8LV is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 8LV?

Key metric: As 8LV is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 8LV. This is calculated by dividing 8LV's market cap by their current earnings.
What is 8LV's PE Ratio?
PE Ratio7.9x
EarningsUS$375.10m
Market CapUS$2.97b

Price to Earnings Ratio vs Peers

How does 8LV's PE Ratio compare to its peers?

The above table shows the PE ratio for 8LV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.8x
688281 Shaanxi Huaqin Technology IndustryLtd
52.4x33.3%CN¥19.6b
300395 Hubei Feilihua Quartz Glass
57.3x44.6%CN¥20.7b
300910 Xinxiang Richful Lube AdditiveLtd
20.9x18.4%CN¥13.7b
IOSP Innospec
20.5x6.9%US$2.9b
8LV Livent
7.9x19.0%€3.0b

Price-To-Earnings vs Peers: 8LV is good value based on its Price-To-Earnings Ratio (7.4x) compared to the peer average (40x).

Price to Earnings Ratio vs Industry

How does 8LV's PE Ratio compare vs other companies in the European Chemicals Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
8LV 7.9xIndustry Avg. 16.8xNo. of Companies12PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 8LV is good value based on its Price-To-Earnings Ratio (7.4x) compared to the European Chemicals industry average (12.4x).

Price to Earnings Ratio vs Fair Ratio

What is 8LV's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

8LV PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 8LV's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 8LV forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
€22.85
0%
28.3%€34.22€13.51n/a18
Nov ’25n/a
€22.85
0%
28.3%€34.22€13.51n/a18
Oct ’25n/a
€22.85
0%
28.3%€34.22€13.51n/a18
Sep ’25n/a
€22.85
0%
28.3%€34.22€13.51n/a18
Aug ’25n/a
€22.85
0%
28.3%€34.22€13.51n/a18
Jul ’25n/a
€22.85
0%
28.3%€34.22€13.51n/a18
Jun ’25n/a
€22.85
0%
28.3%€34.22€13.51n/a18
May ’25n/a
€22.85
0%
28.3%€34.22€13.51n/a18
Apr ’25n/a
€22.85
0%
28.3%€34.22€13.51n/a18
Mar ’25n/a
€22.85
0%
28.3%€34.22€13.51n/a18
Feb ’25n/a
€22.85
0%
28.3%€34.22€13.51n/a18
Jan ’25n/a
€22.85
0%
28.3%€34.22€13.51n/a18
Dec ’24€12.37
€23.03
+86.2%
28.8%€34.63€13.67n/a18
Nov ’24€13.07
€25.87
+98.0%
21.7%€35.96€17.51n/a17
Oct ’24€17.56
€30.11
+71.5%
15.4%€41.48€23.04n/a18
Sep ’24€20.11
€30.11
+49.7%
15.4%€41.48€23.04n/a18
Aug ’24€22.05
€29.89
+35.5%
15.8%€40.68€22.60n/a18
Jul ’24€24.90
€30.11
+20.9%
16.0%€41.27€22.93n/a18
Jun ’24€21.29
€30.53
+43.4%
16.6%€42.11€23.39n/a17
May ’24€19.65
€29.59
+50.6%
17.6%€41.08€20.99n/a16
Apr ’24€19.89
€30.95
+55.6%
17.7%€42.55€21.75n/a16
Mar ’24€22.22
€30.67
+38.0%
17.7%€42.53€21.74n/a17
Feb ’24€23.80
€30.29
+27.3%
16.6%€41.36€20.22n/a17
Jan ’24€18.50
€31.80
+71.8%
14.3%€42.45€25.47n/a16
Dec ’23€26.38
€33.02
+25.2%
14.2%€43.44€26.07€12.3716
Nov ’23€32.68
€33.56
+2.7%
16.0%€44.64€26.78€13.0716

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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