Air Products and Chemicals, Inc.

XTRA:AP3 Stock Report

Market Cap: €70.9b

Air Products and Chemicals Valuation

Is AP3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 AP3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AP3 (€318.3) is trading below our estimate of fair value (€506.17)

Significantly Below Fair Value: AP3 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AP3?

Key metric: As AP3 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for AP3. This is calculated by dividing AP3's market cap by their current earnings.
What is AP3's PE Ratio?
PE Ratio19.2x
EarningsUS$3.84b
Market CapUS$73.79b

Price to Earnings Ratio vs Peers

How does AP3's PE Ratio compare to its peers?

The above table shows the PE ratio for AP3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average40.4x
BAS BASF
76.5x34.2%€38.0b
SY1 Symrise
37.8x13.2%€14.8b
HEI Heidelberg Materials
11.4x7.8%€21.2b
EVK Evonik Industries
35.8x33.1%€8.2b
AP3 Air Products and Chemicals
19.2x1.6%€73.8b

Price-To-Earnings vs Peers: AP3 is good value based on its Price-To-Earnings Ratio (19.2x) compared to the peer average (40.4x).

Price to Earnings Ratio vs Industry

How does AP3's PE Ratio compare vs other companies in the European Chemicals Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AP3 19.2xIndustry Avg. 17.1xNo. of Companies11PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AP3 is expensive based on its Price-To-Earnings Ratio (19.2x) compared to the European Chemicals industry average (17.1x).

Price to Earnings Ratio vs Fair Ratio

What is AP3'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.

AP3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.2x
Fair PE Ratio17.7x

Price-To-Earnings vs Fair Ratio: AP3 is expensive based on its Price-To-Earnings Ratio (19.2x) compared to the estimated Fair Price-To-Earnings Ratio (17.7x).

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 AP3 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€318.30
€324.71
+2.0%
7.6%€360.54€260.92n/a21
Nov ’25€285.90
€306.31
+7.1%
8.0%€353.97€252.84n/a21
Oct ’25€265.90
€270.48
+1.7%
9.3%€317.65€187.91n/a23
Sep ’25€249.10
€271.33
+8.9%
9.7%€320.53€189.61n/a23
Aug ’25€271.90
€264.02
-2.9%
11.1%€328.98€194.61n/a23
Jul ’25€234.30
€261.40
+11.6%
11.0%€330.61€195.57n/a23
Jun ’25€241.00
€248.52
+3.1%
11.1%€327.24€193.58n/a23
May ’25€216.80
€253.31
+16.8%
11.7%€332.03€196.41n/a23
Apr ’25€224.60
€247.86
+10.4%
11.9%€330.51€195.51n/a22
Mar ’25€217.30
€251.68
+15.8%
13.3%€328.45€194.29n/a23
Feb ’25€237.20
€284.72
+20.0%
9.0%€326.56€220.78n/a23
Jan ’25€247.10
€280.80
+13.6%
8.6%€322.66€218.14n/a23
Dec ’24€251.00
€281.63
+12.2%
8.4%€323.16€218.47n/a23
Nov ’24€266.20
€315.10
+18.4%
6.3%€360.73€284.79€285.9023
Oct ’24€271.50
€311.64
+14.8%
6.4%€359.56€283.86€265.9023
Sep ’24€277.50
€300.96
+8.5%
6.7%€347.97€274.71€249.1022
Aug ’24€277.00
€292.84
+5.7%
6.6%€343.73€267.84€271.9022
Jul ’24€268.80
€301.25
+12.1%
6.3%€355.59€277.08€234.3024
Jun ’24€254.00
€307.26
+21.0%
6.8%€360.24€280.71€241.0024
May ’24€265.90
€300.76
+13.1%
6.7%€343.09€274.47€216.8023
Apr ’24€261.75
€306.62
+17.1%
7.2%€357.82€278.82€224.6023
Mar ’24€272.40
€309.26
+13.5%
7.5%€359.79€274.97€217.3024
Feb ’24€290.35
€305.32
+5.2%
8.6%€363.66€258.44€237.2024
Jan ’24€290.05
€304.63
+5.0%
8.8%€371.70€264.15€247.1022
Dec ’23€297.10
€297.82
+0.2%
8.1%€377.44€261.31€251.0022
Nov ’23€255.20
€294.56
+15.4%
7.3%€339.89€254.66€266.2022

Analyst Forecast: Target price is less than 20% higher than the current share price.

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