Is Chemours Set for a Rebound After Recent Legal Settlement Shakes Up the Stock?

If you’re eyeing Chemours and wondering whether now is a smart time to buy, hold, or walk away, you’re definitely not alone. Many investors are taking a second look after a string of rocky performances. Over the last year, Chemours shares have dropped 17.8% and are down 34.1% across the last three years, showing a pattern that has even long-term holders questioning the ride. Even so, hints of positive momentum have surfaced recently, with the stock inching up 1.3% over the last week and 0.9% in the past month, making some investors think the tides might be turning. It’s a classic case of shifting perceptions: are we looking at a bargain, or just catching a falling knife?

Interestingly, if you look at Chemours through the lens of valuation, you’ll see that the company scores 4 out of 6 on our valuation checklist. That means Chemours appears undervalued in two-thirds of the ways professionals size up a stock’s current worth. But as any savvy investor knows, not all valuation methods are created equal, and the real story lies in digging a bit deeper. So, let’s walk through each approach and see what value investors are seeing in Chemours right now, before exploring an even sharper way to judge what the company is truly worth.

Why Chemours is lagging behind its peers

Approach 1: Chemours Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model estimates a company’s value by projecting all its expected future cash flows and then discounting those amounts back to today’s dollars. This method captures how much the business is expected to generate for shareholders over time, adjusted for the risk of those future earnings.

For Chemours, the current Free Cash Flow stands at negative $66.5 million. However, analysts expect a turnaround, forecasting growth to $237 million by the end of 2027. Beyond this, projections continue to climb gradually each year, reaching approximately $308.7 million by 2035. These estimates combine both analyst insights for the next five years and then use a steady growth assumption for the rest of the decade.

Based on this two-stage DCF model, Chemours’ intrinsic value is calculated at $19.44 per share. Compared with the current market price, the valuation suggests the stock is trading at an 18.7% discount. This indicates it is undervalued at present.

Result: UNDERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Chemours.

Our Discounted Cash Flow (DCF) analysis suggests Chemours is undervalued by 18.7%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

Approach 2: Chemours Price vs Sales

For many companies, the price-to-sales (P/S) ratio is a useful valuation metric, especially when profits are volatile or negative. Rather than focusing on short-term profitability, the P/S ratio helps investors understand how the market values each dollar of Chemours’ sales. This can be particularly insightful for cyclical businesses or those facing temporary headwinds because it smooths out the impact of fluctuating earnings.

Growth expectations and perceived risks are key drivers behind what qualifies as a “normal” or “fair” P/S ratio. Higher-growth companies, or those operating in safer, more profitable sectors, can often justify higher multiples. In contrast, riskier or slower-growing companies tend to be valued more cautiously.

Currently, Chemours is trading at a P/S ratio of 0.40x, which is notably below both the chemical industry average of 1.19x and the peer group average of 0.98x. At first glance, this may signal a discount to industry standards. However, Simply Wall St’s proprietary “Fair Ratio” looks deeper by calculating that, based on Chemours’ specific growth outlook, profit margins, industry, and risk profile, a fair P/S multiple would be about 1.15x.

Unlike simple industry or peer comparisons, the Fair Ratio reflects the company’s own characteristics and offers a more tailored benchmark that considers growth opportunities and individual risks. This approach helps investors see beyond the broader averages and focus on Chemours’ unique situation.

With Chemours trading well below its Fair Ratio, the numbers suggest the stock is undervalued on a price-to-sales basis and may be offering the market a discount.

Result: UNDERVALUED

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Chemours Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is simply your unique story or perspective about a company like Chemours, connecting the “why” behind what you believe, such as future revenue growth, profit margins, and risks, to your expected fair value (what you think the stock should be worth).

Narratives make investing more approachable by weaving your outlook directly into a custom forecast, which then estimates a fair value based on your own assumptions. Available right on Simply Wall St's Community page (where millions share their ideas), Narratives help you act on your conviction. When your Narrative says Chemours is worth more than the current price, you can decide to buy. If it is worth less, maybe it is time to hold or sell. Narratives automatically update every time new information, like quarterly earnings or news headlines, arrives, keeping your analysis up to date.

For Chemours, investors in the Community currently have a wide range of Narratives. Some believe Chemours could be worth as much as $18.00 per share if new refrigerant and advanced material markets take off, while others see more downside risk and value it closer to $11.00, reflecting ongoing legal and ESG challenges. Whichever side you are on, Narratives give you the tools to decide confidently and transparently.

Do you think there's more to the story for Chemours? Create your own Narrative to let the Community know!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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