A Look at Celanese (CE) Valuation Following Net Loss and $1.5 Billion Asset Impairment

Celanese (CE) shares are in focus after the company posted a substantial net loss for the third quarter, along with disclosing a $1.5 billion asset impairment related to goodwill and certain trade names.

See our latest analysis for Celanese.

Celanese’s recent third-quarter results, featuring a major $1.5 billion impairment and steep net loss, have contributed to the stock’s sharp challenges this year. While the shares climbed 11% over the past week, broader momentum remains pressured, with a year-to-date share price return down nearly 40% and a 1-year total shareholder return of minus 45%. In summary, short-term rebounds have not yet reversed a longer-term decline for investors.

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Given shares now trade at a significant discount to analyst targets after recent impairments and losses, investors must ask whether the worst is over or if the current price fully reflects future growth risks and opportunities.

Most Popular Narrative: 22.9% Undervalued

Celanese’s most followed narrative points to a fair value nearly 23% above the recent last close, suggesting current prices may overlook recovery potential. This sets the stage for key updates that shape the bullish argument.

Celanese is positioned to benefit from the shift toward lightweight and fuel-efficient solutions in automotive and aerospace, with the upcoming wave of new EV launches by Western OEMs and continuing demand for high-performance polymers expected to reignite volume growth and revenues as end-market demand normalizes. Strategic cost optimization, such as supply chain consolidation, SKU rationalization, inventory reduction, and streamlined SG&A, has materially lowered the company's fixed cost base. This has enhanced operating leverage and can support higher EBITDA margins and net earnings when volumes recover.

Read the complete narrative.

There’s more to this value story than meets the eye. The popular narrative hinges on a profit rebound, bold cost transformations, and a surprising multiple far below peer averages. Want to discover the exact assumptions that could propel the stock much higher? Jump into the full narrative for a revealing deep dive.

Result: Fair Value of $53.69 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, prolonged market overcapacity or weaker demand, particularly in key global acetyl markets, could delay a sustained earnings turnaround for Celanese.

Find out about the key risks to this Celanese narrative.

Build Your Own Celanese Narrative

If you see the data differently, or want to dig in yourself, you can build your perspective and shape your own story easily in just minutes. Do it your way

A great starting point for your Celanese research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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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