Ingevity (NGVT): Assessing Valuation After Expanded Carbon Nanotube Deal with CHASM for Battery Growth

Ingevity (NGVT) has expanded its collaboration with CHASM by signing a license to manufacture advanced carbon nanotube additives. This agreement opens new opportunities in battery materials across North America and select European regions.

See our latest analysis for Ingevity.

Ingevity’s shares have rebounded sharply since the start of the year, with a 25.3% year-to-date share price return reflecting optimism around its battery additives expansion and a renewed appetite for materials stocks. Still, the 1-year total shareholder return sits at just 2%, and long-term holders have seen a 36.8% total return decline over three years. This underscores how momentum has only recently started to recover.

If this strategic move has you looking beyond the headlines, it could be the perfect time to discover fast growing stocks with high insider ownership

But with shares still trading at a 41% discount to their estimated intrinsic value and analysts implying nearly 35% upside, the big question is whether the market has already accounted for Ingevity’s growth ambitions or if a genuine buying opportunity remains.

Most Popular Narrative: 24.0% Undervalued

Ingevity’s widely followed narrative points to a fair value notably above the last close, suggesting the market is not fully considering improved outlook and catalysts. The setup is a company riding renewed momentum, yet with numbers that spark debate about how much further it can run.

Accelerated portfolio repositioning and the advanced-stage divestiture of non-core, lower-margin businesses (Industrial Specialties and CTO refinery) are expected to drive a step-change in margin profile. This will enable greater focus and capital allocation toward higher-growth, value-added specialty chemicals, supporting both revenue quality and sustained EBITDA margin improvement.

Read the complete narrative.

Want to know which single shift unlocks this value? The key factor is major changes in how capital is deployed and where future profits come from. See what is fueling those bold margin and growth projections that underlie the entire fair value calculation.

Result: Fair Value of $65.25 (UNDERVALUED)

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

However, ongoing weakness in global industrial markets and heightened tariff uncertainty could threaten Ingevity’s margin stability and long-term earnings outlook.

Find out about the key risks to this Ingevity narrative.

Another View: Market Ratios Tell a Different Story

While fair value models suggest Ingevity is significantly undervalued, the market's current pricing based on its price-to-sales ratio actually signals it is more expensive than both industry and peer averages. With a ratio of 1.3x compared to the US Chemicals industry average of 1.2x and a peer group at 1.1x, the stock trades at a premium. The fair ratio, which the broader market might revert to, sits even lower at 1.1x. This raises questions about valuation risk if sentiment shifts. Could momentum or fundamentals win out next?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Ingevity Narrative

If you have a different perspective or want to dive deeper into the numbers yourself, it's quick and easy to build your own view of Ingevity and share your conclusions. Do it your way

A great starting point for your Ingevity 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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