Arcadium Lithium plc

DB:7WO0 Stock Report

Market Cap: €6.0b

Arcadium Lithium Valuation

Is 7WO0 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 7WO0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€43.80
Fair Value
87.3% undervalued intrinsic discount
19
Number of Analysts

Below Fair Value: 7WO0 (€5.55) is trading below our estimate of fair value (€43.8)

Significantly Below Fair Value: 7WO0 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7WO0?

Key metric: As 7WO0 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 7WO0. This is calculated by dividing 7WO0's market cap by their current earnings.
What is 7WO0's PE Ratio?
PE Ratio39.2x
EarningsUS$155.10m
Market CapUS$6.09b

Price to Earnings Ratio vs Peers

How does 7WO0's PE Ratio compare to its peers?

The above table shows the PE ratio for 7WO0 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.8x
EVK Evonik Industries
33.7x33.0%€7.7b
SY1 Symrise
35.5x14.0%€13.9b
WCH Wacker Chemie
25x35.4%€3.1b
ACT AlzChem Group
13x12.8%€649.3m
7WO0 Arcadium Lithium
39.2x29.3%€6.1b

Price-To-Earnings vs Peers: 7WO0 is expensive based on its Price-To-Earnings Ratio (39.2x) compared to the peer average (26.8x).

Price to Earnings Ratio vs Industry

How does 7WO0's PE Ratio compare vs other companies in the European Chemicals Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
7WO0 39.2xIndustry Avg. 17.1xNo. of Companies12PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 7WO0 is expensive based on its Price-To-Earnings Ratio (39.2x) compared to the European Chemicals industry average (17.1x).

Price to Earnings Ratio vs Fair Ratio

What is 7WO0'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.

7WO0 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio39.2x
Fair PE Ratio32.8x

Price-To-Earnings vs Fair Ratio: 7WO0 is expensive based on its Price-To-Earnings Ratio (39.2x) compared to the estimated Fair Price-To-Earnings Ratio (32.8x).

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 7WO0 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€5.55
€5.94
+7.1%
16.4%€8.78€4.21n/a19
Jan ’26€4.90
€5.73
+17.0%
16.4%€8.48€4.06n/a19
Dec ’25€5.00
€5.73
+14.7%
16.4%€8.48€4.06n/a19
Nov ’25€4.97
€5.51
+10.9%
18.8%€8.34€3.71n/a19
Oct ’25€2.53
€4.58
+81.1%
42.2%€8.98€2.60n/a21
Sep ’25€2.43
€4.72
+94.2%
39.9%€8.97€2.69n/a21
Aug ’25€2.82
€6.16
+118.3%
39.7%€12.93€3.46n/a20
Jul ’25€3.11
€6.92
+122.8%
37.5%€13.08€3.50n/a20
Jun ’25€4.04
€7.40
+83.1%
31.6%€12.96€4.63n/a18
May ’25€4.04
€7.57
+87.5%
29.3%€12.90€4.61n/a19
Apr ’25€4.14
€7.60
+83.6%
29.9%€12.86€4.59n/a19
Mar ’25€5.11
€8.08
+58.1%
29.0%€12.90€4.61n/a18
Feb ’25€4.36
€8.68
+99.2%
25.6%€12.91€5.53n/a18
Jan ’25n/a
€9.50
0%
28.3%€14.22€5.61€4.9018
Dec ’24n/a
€9.57
0%
28.8%€14.39€5.68€5.0018
Nov ’24n/a
€11.14
0%
24.9%€17.70€7.28€4.9718
Oct ’24n/a
€12.52
0%
15.4%€17.24€9.58€2.5318
Sep ’24n/a
€12.52
0%
15.4%€17.24€9.58€2.4318
Aug ’24n/a
€12.42
0%
15.8%€16.91€9.39€2.8218
Jul ’24n/a
€12.52
0%
16.0%€17.15€9.53€3.1118
Jun ’24n/a
€12.69
0%
16.6%€17.50€9.72€4.0417
May ’24n/a
€12.30
0%
17.6%€17.07€8.73€4.0416
Apr ’24n/a
€12.86
0%
17.7%€17.68€9.04€4.1416
Mar ’24n/a
€12.75
0%
17.7%€17.68€9.04€5.1117
Feb ’24n/a
€12.61
0%
16.6%€17.21€8.42€4.3617
Jan ’24n/a
€13.22
0%
14.3%€17.64€10.59n/a16
Analyst Price Target
Consensus Narrative from 19 Analysts
€5.97
Fair Value
7.0% undervalued intrinsic discount
19
Number of Analysts

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

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/13 03:10
End of Day Share Price 2025/01/13 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Arcadium Lithium plc is covered by 40 analysts. 22 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
William SeleskyArgus Research Company
John EadeArgus Research Company
Dale KoendersBarrenjoey Markets Pty Limited