At US$98.54, Is LyondellBasell Industries N.V. (NYSE:LYB) Worth Looking At Closely?

LyondellBasell Industries N.V. (NYSE:LYB) saw its share price hover around a small range of US$96.27 to US$106 over the last few weeks. But is this actually reflective of the share value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at LyondellBasell Industries’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for LyondellBasell Industries

What Is LyondellBasell Industries Worth?

Good news, investors! LyondellBasell Industries is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is $143.12, but it is currently trading at US$98.54 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, LyondellBasell Industries’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of LyondellBasell Industries look like?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 55% over the next couple of years, the future seems bright for LyondellBasell Industries. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? Since LYB is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on LYB for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy LYB. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

So while earnings quality is important, it's equally important to consider the risks facing LyondellBasell Industries at this point in time. You'd be interested to know, that we found 2 warning signs for LyondellBasell Industries and you'll want to know about these.

If you are no longer interested in LyondellBasell Industries, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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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.