Axalta Coating Systems Ltd.

NYSE:AXTA Stock Report

Market Cap: US$8.5b

Axalta Coating Systems Valuation

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

Below Fair Value: AXTA ($39.78) is trading below our estimate of fair value ($58.28)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for AXTA. This is calculated by dividing AXTA's market cap by their current earnings.
What is AXTA's PE Ratio?
PE Ratio26.5x
EarningsUS$327.40m
Market CapUS$8.48b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AXTA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.4x
CE Celanese
7.3x14.2%US$7.9b
ESI Element Solutions
26x0.5%US$6.7b
BCPC Balchem
48.2x14.9%US$5.8b
NEU NewMarket
12xn/aUS$5.1b
AXTA Axalta Coating Systems
26.5x19.1%US$8.5b

Price-To-Earnings vs Peers: AXTA is expensive based on its Price-To-Earnings Ratio (26.5x) compared to the peer average (23.4x).

Price to Earnings Ratio vs Industry

How does AXTA'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
0.06xn/aUS$9.40m
BON Bon Natural Life
2.4xn/aUS$5.36m
GSPI Green Star Products
1.7xn/aUS$1.49m
AXTA 26.5xIndustry Avg. 23.2xNo. of Companies7PE01224364860+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AXTA is expensive based on its Price-To-Earnings Ratio (26.5x) compared to the US Chemicals industry average (23.2x).

Price to Earnings Ratio vs Fair Ratio

What is AXTA'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.

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

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

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 AXTA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$39.78
US$43.93
+10.4%
6.5%US$50.00US$39.00n/a20
Nov ’25US$37.98
US$43.56
+14.7%
6.4%US$50.00US$39.00n/a19
Oct ’25US$35.64
US$41.56
+16.6%
6.7%US$45.00US$35.00n/a19
Sep ’25US$36.50
US$41.56
+13.9%
6.7%US$45.00US$35.00n/a19
Aug ’25US$36.64
US$40.40
+10.3%
6.9%US$45.00US$35.00n/a19
Jul ’25US$33.70
US$40.00
+18.7%
6.9%US$45.00US$33.00n/a18
Jun ’25US$35.59
US$40.06
+12.5%
6.9%US$45.00US$33.00n/a18
May ’25US$34.21
US$37.53
+9.7%
9.7%US$45.00US$30.00n/a19
Apr ’25US$34.40
US$36.50
+6.1%
8.5%US$42.00US$30.00n/a18
Mar ’25US$32.48
US$36.50
+12.4%
8.5%US$42.00US$30.00n/a18
Feb ’25US$32.94
US$36.11
+9.6%
9.5%US$42.00US$30.00n/a18
Jan ’25US$33.97
US$35.17
+3.5%
9.6%US$42.00US$30.00n/a18
Dec ’24US$32.19
US$34.44
+7.0%
7.6%US$39.00US$30.00n/a18
Nov ’24US$28.35
US$33.78
+19.1%
7.9%US$38.00US$29.00US$37.9818
Oct ’24US$26.90
US$34.35
+27.7%
7.9%US$38.00US$29.00US$35.6418
Sep ’24US$28.31
US$34.17
+20.7%
8.0%US$38.00US$29.00US$36.5019
Aug ’24US$32.20
US$35.21
+9.3%
8.8%US$40.00US$29.00US$36.6419
Jul ’24US$32.81
US$34.42
+4.9%
8.6%US$40.00US$29.00US$33.7019
Jun ’24US$30.02
US$33.94
+13.1%
9.7%US$40.00US$28.00US$35.5918
May ’24US$31.60
US$33.18
+5.0%
11.7%US$40.00US$24.00US$34.2117
Apr ’24US$30.29
US$32.06
+5.8%
12.1%US$40.00US$24.00US$34.4017
Mar ’24US$30.17
US$32.23
+6.8%
11.9%US$40.00US$24.00US$32.4818
Feb ’24US$30.35
US$31.90
+5.1%
11.8%US$40.00US$24.00US$32.9418
Jan ’24US$25.47
US$28.24
+10.9%
10.7%US$34.00US$20.00US$33.9718
Dec ’23US$26.78
US$27.37
+2.2%
10.5%US$31.00US$20.00US$32.1918
Nov ’23US$23.66
US$27.37
+15.7%
10.5%US$31.00US$20.00US$28.3518

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

Discover undervalued companies

Huntsman

US$3.3b

Manufactures and sells diversified organic chemical products worldwide.

HUN

US$19.42

7D

-1.3%

1Y

-22.1%

Trinseo

US$117.5m

Operates as a specialty material solutions provider in the United States, Europe, the Asia-Pacific, and internationally.

TSE

US$3.25

7D

-10.2%

1Y

-49.9%

CMOC Group

HK$166.5b

Engages in the mining, beneficiation, smelting, and refining of base and rare metals.

CMCL.F

HK$0.77

7D

1.7%

1Y

40.1%