Albemarle Corporation

NYSE:ALB Stock Report

Market Cap: US$12.5b

Albemarle Valuation

Is ALB 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: ALB ($109.55) is trading below our estimate of fair value ($241.6)

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

Key Valuation Metric

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

Key metric: As ALB is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ALB. This is calculated by dividing ALB's market cap by their current revenue.
What is ALB's PS Ratio?
PS Ratio2x
SalesUS$6.50b
Market CapUS$12.51b

Price to Sales Ratio vs Peers

How does ALB's PS Ratio compare to its peers?

The above table shows the PS ratio for ALB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.8x
SQM Sociedad Química y Minera de Chile
2x8.6%US$11.2b
AXTA Axalta Coating Systems
1.6x3.0%US$8.5b
ALTM Arcadium Lithium
6.2x20.5%US$5.6b
EMN Eastman Chemical
1.3x3.4%US$11.7b
ALB Albemarle
2x9.1%US$12.5b

Price-To-Sales vs Peers: ALB is good value based on its Price-To-Sales Ratio (2x) compared to the peer average (2.8x).

Price to Sales Ratio vs Industry

How does ALB's PS Ratio compare vs other companies in the US Chemicals Industry?

10 CompaniesPrice / SalesEstimated GrowthMarket Cap
TSE Trinseo
0.03x5.0%US$117.53m
ALTO Alto Ingredients
0.1x3.1%US$106.54m
BON Bon Natural Life
0.2xn/aUS$5.36m
ABLT American Biltrite
0.02xn/aUS$2.91m
ALB 2.0xIndustry Avg. 1.4xNo. of Companies18PS01.22.43.64.86+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ALB is expensive based on its Price-To-Sales Ratio (2x) compared to the US Chemicals industry average (1.4x).

Price to Sales Ratio vs Fair Ratio

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

ALB PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2x
Fair PS Ratio0.7x

Price-To-Sales vs Fair Ratio: ALB is expensive based on its Price-To-Sales Ratio (2x) compared to the estimated Fair Price-To-Sales Ratio (0.7x).

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 ALB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$109.55
US$116.41
+6.3%
29.3%US$225.00US$73.00n/a26
Nov ’25US$98.24
US$113.68
+15.7%
31.2%US$225.00US$73.00n/a26
Oct ’25US$94.32
US$111.98
+18.7%
32.4%US$225.00US$73.00n/a26
Sep ’25US$90.25
US$112.29
+24.4%
32.3%US$225.00US$73.00n/a26
Aug ’25US$93.17
US$126.80
+36.1%
27.0%US$225.00US$81.00n/a25
Jul ’25US$97.41
US$148.46
+52.4%
24.9%US$275.00US$81.00n/a24
Jun ’25US$122.59
US$153.44
+25.2%
24.3%US$275.00US$81.00n/a25
May ’25US$119.00
US$152.40
+28.1%
24.1%US$275.00US$81.00n/a27
Apr ’25US$129.18
US$150.03
+16.1%
25.1%US$275.00US$81.00n/a27
Mar ’25US$142.80
US$152.36
+6.7%
26.6%US$300.00US$90.00n/a27
Feb ’25US$116.78
US$162.37
+39.0%
25.2%US$300.00US$90.00n/a27
Jan ’25US$144.48
US$188.34
+30.4%
30.3%US$308.00US$90.00n/a27
Dec ’24US$126.16
US$190.80
+51.2%
30.2%US$308.00US$90.00n/a27
Nov ’24US$122.96
US$238.29
+93.8%
23.5%US$350.00US$155.00US$98.2426
Oct ’24US$170.04
US$264.67
+55.7%
17.8%US$350.00US$155.00US$94.3224
Sep ’24US$200.26
US$264.69
+32.2%
18.3%US$350.00US$155.00US$90.2525
Aug ’24US$207.99
US$267.48
+28.6%
19.9%US$360.00US$155.00US$93.1725
Jul ’24US$223.09
US$263.19
+18.0%
20.6%US$360.00US$155.00US$97.4125
Jun ’24US$195.54
US$264.95
+35.5%
21.9%US$360.00US$155.00US$122.5924
May ’24US$177.27
US$285.85
+61.3%
25.2%US$498.00US$155.00US$119.0022
Apr ’24US$221.04
US$319.21
+44.4%
19.6%US$498.00US$155.00US$129.1822
Mar ’24US$252.64
US$315.70
+25.0%
19.3%US$498.00US$155.00US$142.8024
Feb ’24US$285.90
US$313.10
+9.5%
19.8%US$497.00US$155.00US$116.7823
Jan ’24US$216.86
US$314.20
+44.9%
19.5%US$461.00US$155.00US$144.4821
Dec ’23US$275.29
US$321.15
+16.7%
19.5%US$461.00US$155.00US$126.1620
Nov ’23US$279.00
US$313.15
+12.2%
20.1%US$440.00US$145.00US$122.9620

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

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