NewMarket Valuation

Q: What is the Fair Price of NEU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

NEU ($549.61) is trading below our estimate of [[fair value]] ($1095.64)

Is NEU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: NEU ($549.61) is trading below our estimate of fair value ($1095.64)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for NEU. This is calculated by dividing NEU's market cap by their current earnings.
What is NEU's PE Ratio?
PE Ratio	12.2x
Earnings	US$430.55m
Market Cap	US$5.27b

NEU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.3x
Enterprise Value/EBITDA	9x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for NEU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	31.7x
BCPC Balchem	47.5x	14.9%	US$5.8b
AVNT Avient	31.1x	20.4%	US$4.6b
FUL H.B. Fuller	22.7x	14.1%	US$4.1b
ESI Element Solutions	25.6x	0.5%	US$6.8b
NEU NewMarket	12.2x	n/a	US$5.3b

Price-To-Earnings vs Peers: NEU is good value based on its Price-To-Earnings Ratio (12.2x) compared to the peer average (31.7x).

Price to Earnings Ratio vs Industry

How does NEU's PE Ratio compare vs other companies in the US Chemicals Industry?

7 Companies	Price / Earnings	Estimated Growth	Market Cap
FFHL Fuwei Films (Holdings)	2.8x	n/a	US$27.11m
BSLK Bolt Projects Holdings	0.07x	n/a	US$10.15m
BON Bon Natural Life	2.3x	n/a	US$5.64m
GSPI Green Star Products	1.5x	n/a	US$1.49m

7 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: NEU is good value based on its Price-To-Earnings Ratio (12.2x) compared to the US Chemicals industry average (23.6x).

Price to Earnings Ratio vs Fair Ratio

What is NEU'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.

NEU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate NEU's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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