Methanex Corporation

NasdaqGS:MEOH Stock Report

Market Cap: US$3.2b

Methanex Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: MEOH ($47.47) is trading below our estimate of fair value ($208.38)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MEOH. This is calculated by dividing MEOH's market cap by their current earnings.
What is MEOH's PE Ratio?
PE Ratio21x
EarningsUS$152.40m
Market CapUS$3.20b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MEOH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31.4x
HWKN Hawkins
34.6x6.1%US$2.8b
OLN Olin
31.9x62.8%US$4.8b
TROX Tronox Holdings
43.7x95.1%US$1.8b
CBT Cabot
15.3xn/aUS$5.7b
MEOH Methanex
21x33.3%US$4.5b

Price-To-Earnings vs Peers: MEOH is good value based on its Price-To-Earnings Ratio (21x) compared to the peer average (31.4x).


Price to Earnings Ratio vs Industry

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

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FFHL Fuwei Films (Holdings)
2.8xn/aUS$27.11m
BSLK Bolt Projects Holdings
0.1xn/aUS$16.82m
BON Bon Natural Life
2.5xn/aUS$6.07m
GSPI Green Star Products
1.7xn/aUS$1.64m
MEOH 21.0xIndustry Avg. 22.6xNo. of Companies8PE01224364860+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MEOH is good value based on its Price-To-Earnings Ratio (21x) compared to the US Chemicals industry average (22.6x).


Price to Earnings Ratio vs Fair Ratio

What is MEOH'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.

MEOH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21x
Fair PE Ratio26.5x

Price-To-Earnings vs Fair Ratio: MEOH is good value based on its Price-To-Earnings Ratio (21x) compared to the estimated Fair Price-To-Earnings Ratio (26.5x).


Analyst Price Targets

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

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


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