Arcadium Lithium plc

NYSE:ALTM Stock Report

Market Cap: US$5.7b

Arcadium Lithium Valuation

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

Below Fair Value: ALTM ($5.29) is trading below our estimate of fair value ($38.88)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ALTM. This is calculated by dividing ALTM's market cap by their current earnings.
What is ALTM's PE Ratio?
PE Ratio36.7x
EarningsUS$155.10m
Market CapUS$5.69b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ALTM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.7x
BCPC Balchem
48.8x14.9%US$5.9b
NEU NewMarket
12.1xn/aUS$5.2b
CE Celanese
7.4x14.2%US$8.2b
ESI Element Solutions
26.5x0.5%US$7.0b
ALTM Arcadium Lithium
36.7x29.8%US$5.7b

Price-To-Earnings vs Peers: ALTM is expensive based on its Price-To-Earnings Ratio (36.7x) compared to the peer average (23.7x).

Price to Earnings Ratio vs Industry

How does ALTM'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
0.08xn/aUS$11.50m
BON Bon Natural Life
2.5xn/aUS$6.23m
TANH Tantech Holdings
0.2xn/aUS$1.26m
ALTM 36.7xIndustry Avg. 22.8xNo. of Companies9PE01224364860+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ALTM is expensive based on its Price-To-Earnings Ratio (36.7x) compared to the US Chemicals industry average (22.8x).

Price to Earnings Ratio vs Fair Ratio

What is ALTM'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.

ALTM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio36.7x
Fair PE Ratio37.1x

Price-To-Earnings vs Fair Ratio: ALTM is good value based on its Price-To-Earnings Ratio (36.7x) compared to the estimated Fair Price-To-Earnings Ratio (37.1x).

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 ALTM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$5.29
US$6.04
+14.2%
16.5%US$9.00US$4.31n/a19
Nov ’25US$5.44
US$5.90
+8.5%
18.8%US$9.00US$4.00n/a19
Oct ’25US$2.84
US$5.10
+79.6%
42.2%US$10.00US$2.90n/a21
Sep ’25US$2.71
US$5.26
+94.2%
39.9%US$10.00US$3.00n/a21
Aug ’25US$3.04
US$6.67
+119.2%
39.7%US$14.00US$3.75n/a20
Jul ’25US$3.26
US$7.40
+127.1%
37.5%US$14.00US$3.75n/a20
Jun ’25US$4.43
US$7.99
+80.4%
31.6%US$14.00US$5.00n/a18
May ’25US$4.55
US$8.22
+80.7%
29.3%US$14.00US$5.00n/a19
Apr ’25US$4.31
US$8.28
+92.0%
29.9%US$14.00US$5.00n/a19
Mar ’25US$5.53
US$8.76
+58.5%
29.0%US$14.00US$5.00n/a18
Feb ’25US$4.75
US$9.42
+98.2%
25.6%US$14.00US$6.00n/a18
Jan ’25US$7.47
US$10.55
+41.1%
28.3%US$15.79US$6.23n/a18
Dec ’24US$5.95
US$10.50
+76.4%
28.8%US$15.79US$6.23n/a18
Nov ’24US$5.95
US$11.77
+97.8%
24.9%US$18.70US$7.69US$5.4418
Oct ’24US$7.65
US$13.58
+77.5%
15.4%US$18.70US$10.39US$2.8418
Sep ’24US$9.01
US$13.58
+50.6%
15.4%US$18.70US$10.39US$2.7118
Aug ’24US$10.05
US$13.74
+36.8%
15.8%US$18.70US$10.39US$3.0418
Jul ’24US$11.40
US$13.65
+19.7%
16.0%US$18.70US$10.39US$3.2618
Jun ’24US$9.75
US$13.56
+39.1%
16.6%US$18.70US$10.39US$4.4317
May ’24US$8.68
US$13.47
+55.2%
17.6%US$18.70US$9.56US$4.5516
Apr ’24US$9.03
US$13.60
+50.7%
17.7%US$18.70US$9.56US$4.3116
Mar ’24US$9.83
US$13.49
+37.2%
17.7%US$18.70US$9.56US$5.5317
Feb ’24US$10.85
US$13.70
+26.3%
16.6%US$18.70US$9.14US$4.7517
Jan ’24US$8.26
US$14.01
+69.6%
14.3%US$18.70US$11.22US$7.4716
Dec ’23US$11.19
US$14.22
+27.0%
14.2%US$18.70US$11.22US$5.9516
Nov ’23US$13.02
US$14.06
+8.0%
16.0%US$18.70US$11.22US$5.9516

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

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