Albemarle's stock may be undervalued by about 45% based on a discounted cash flow analysis, even after more than doubling over the past year. The DCF model estimates an intrinsic value of roughly $248 per share, implying a 45.1% discount to the current price, supported by Citi's recent upgrade citing growth potential in lithium and specialty chemicals. However, market-based multiples paint a different picture, with the price-to-sales ratio at 2.9x, above the fair multiple benchmark of 1.8x and the broader chemicals industry average of 1.0x. Overall, the stock screens as undervalued in three of six valuation checks, leaving a mixed signal for investors.
Albemarle CorpCiti upgrade and DCF analysis suggest 45% undervaluation, positive for stock.