Eastman Chemical (EMN): Taking a Closer Look at Current Valuation After Recent Share Price Slide

Eastman Chemical (EMN) shares have drifted lower lately, notching a roughly 13% slide over the past 3 months. This comes even as annual revenue and net income saw marginal growth. Investors may be weighing recent performance in relation to broader market trends.

See our latest analysis for Eastman Chemical.

After a tough slide this year, Eastman Chemical’s stock is struggling to regain momentum. The share price is down over 28% year-to-date and total shareholder return for the past 12 months sits at -37%. Despite recent revenue and earnings growth, the stock’s longer-term returns remain in negative territory, reflecting shifting sentiment around the company’s growth prospects and risk profile.

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With shares trading well below recent highs, is Eastman Chemical now undervalued, or is the market accurately reflecting the company's future growth prospects and risks? Could this be a genuine buying opportunity, or is everything priced in?

Most Popular Narrative: 15.1% Undervalued

Eastman Chemical is trading well below the narrative’s estimated fair value, with the last close at $63.36 and the narrative fair value at $74.59. This sets the stage for a deeper look at what is driving this valuation disconnect.

Growth in sustainable, advanced materials (such as specialty plastics and polymers for packaging, automotive, and consumer goods), supported by stable long-term contracts with global consumer brands (such as Pepsi and Unilever), is likely to drive predictable volume growth and improved top-line stability as emerging market consumption rises and regulatory requirements for recycled content strengthen.

Read the complete narrative.

Want to know the numbers behind this valuation gap? The most widely followed narrative is anchored by ambitious assumptions for future earnings growth and margin improvement. Curious how much these financial targets could boost the share price? Uncover the quantitative projections, estimates, and future profit ratios that shape this consensus outlook now.

Result: Fair Value of $74.59 (UNDERVALUED)

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

However, global trade tensions or faltering demand in key segments could easily undermine margin recovery and have a negative impact on Eastman's long-term growth story.

Find out about the key risks to this Eastman Chemical narrative.

Build Your Own Eastman Chemical Narrative

If you’re not convinced by the popular outlook or want to dig deeper into the data, you can easily craft your own perspective in just a few minutes. So why not Do it your way?

A great starting point for your Eastman Chemical research is our analysis highlighting 3 key rewards and 2 important warning signs 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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