Innospec Valuation

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

Below Fair Value: IOSP ($121.71) is trading below our estimate of fair value ($147.58)

Significantly Below Fair Value: IOSP is trading below fair value, but not by a significant amount.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

IOSP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.5x
Enterprise Value/EBITDA13.3x
PEG Ratio1.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for IOSP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average29.2x
KWR Quaker Chemical
28.3x22.9%US$3.5b
SXT Sensient Technologies
34.6x18.3%US$3.2b
MTX Minerals Technologies
26.5x39.3%US$2.4b
FUL H.B. Fuller
27.2x20.1%US$4.1b
IOSP Innospec
21.8x11.5%US$3.0b

Price-To-Earnings vs Peers: IOSP is good value based on its Price-To-Earnings Ratio (21.8x) compared to the peer average (29.2x).


Price to Earnings Ratio vs Industry

How does IOSP's PE Ratio compare vs other companies in the US Chemicals Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: IOSP is good value based on its Price-To-Earnings Ratio (21.8x) compared to the US Chemicals industry average (22x).


Price to Earnings Ratio vs Fair Ratio

What is IOSP'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.

IOSP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.8x
Fair PE Ratio17.2x

Price-To-Earnings vs Fair Ratio: IOSP is expensive based on its Price-To-Earnings Ratio (21.8x) compared to the estimated Fair Price-To-Earnings Ratio (17.2x).


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 IOSP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$121.71
US$132.50
+8.9%
1.9%US$135.00US$130.00n/a2
Apr ’25US$126.35
US$132.50
+4.9%
1.9%US$135.00US$130.00n/a2
Mar ’25US$125.37
US$127.00
+1.3%
2.4%US$130.00US$124.00n/a2
Feb ’25US$117.75
US$124.50
+5.7%
0.4%US$125.00US$124.00n/a2
Jan ’25US$123.24
US$124.50
+1.0%
0.4%US$125.00US$124.00n/a2
Dec ’24US$107.07
US$124.50
+16.3%
0.4%US$125.00US$124.00n/a2
Nov ’24US$97.81
US$123.50
+26.3%
1.2%US$125.00US$122.00n/a2
Oct ’24US$102.20
US$123.50
+20.8%
1.2%US$125.00US$122.00n/a2
Sep ’24US$109.12
US$123.50
+13.2%
1.2%US$125.00US$122.00n/a2
Aug ’24US$107.88
US$123.50
+14.5%
1.2%US$125.00US$122.00n/a2
Jul ’24US$100.44
US$123.50
+23.0%
1.2%US$125.00US$122.00n/a2
Jun ’24US$93.74
US$123.50
+31.7%
1.2%US$125.00US$122.00n/a2
May ’24US$100.92
US$123.50
+22.4%
1.2%US$125.00US$122.00US$120.442
Apr ’24US$102.67
US$123.50
+20.3%
1.2%US$125.00US$122.00US$126.352
Mar ’24US$108.89
US$123.50
+13.4%
1.2%US$125.00US$122.00US$125.372
Feb ’24US$114.30
US$121.50
+6.3%
2.9%US$125.00US$118.00US$117.752
Jan ’24US$102.86
US$121.50
+18.1%
2.9%US$125.00US$118.00US$123.242
Dec ’23US$111.48
US$121.50
+9.0%
2.9%US$125.00US$118.00US$107.072
Nov ’23US$98.94
US$117.50
+18.8%
6.4%US$125.00US$110.00US$97.812
Oct ’23US$85.67
US$117.50
+37.2%
6.4%US$125.00US$110.00US$102.202
Sep ’23US$90.53
US$117.50
+29.8%
6.4%US$125.00US$110.00US$109.122
Aug ’23US$103.03
US$117.50
+14.0%
6.4%US$125.00US$110.00US$107.882
Jul ’23US$95.88
US$117.50
+22.5%
6.4%US$125.00US$110.00US$100.442
Jun ’23US$102.54
US$117.50
+14.6%
6.4%US$125.00US$110.00US$93.742
May ’23US$95.31
US$117.50
+23.3%
6.4%US$125.00US$110.00US$100.922

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


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