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HUN
Huntsman Corp
Price:  
19.32 
USD
Volume:  
1,058,035
United States | Chemicals

HUN Fair Value

-117.8 %
Upside

As of 2024-12-15, the Fair Value of Huntsman Corp (HUN) is -3.44 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 19.32 USD, the upside of Huntsman Corp is -117.8%.

Note: valuation result may not be accurate due to the company's negative EPS.

19.32 USD
Stock Price
-3.44 USD
Fair Price
FAIR VALUE CALCULATION

HUN Fair Value

Peter Lynch's formula is:

HUN Fair Value
= Earnings Growth Rate x TTM EPS
HUN Fair Value
= 5 x -0.69
HUN Fair Value
= -3.44

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-201912-202012-202112-202212-20235Y Avg
Net income5621,0341,045460101640
YoY growth66.8%84%1.1%-56%-78%3.6%

HUN Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
RPM International Inc17,0956.3123.51-7%
CF Industries Holdings Inc15,6846.7167.2285.5%
Westlake Chemical Corp15,4590.819.04-84.2%
Eastman Chemical Co11,5617.638.18-61.7%
Axalta Coating Systems Ltd8,5201.529.48-24.6%
Mosaic Co8,4691.27.59-71.5%
Celanese Corp7,52610204.38196.8%
FMC Corp6,80411.7288.07428.6%
Olin Corp4,4411.36.47-83%
Chemours Co2,8990.511.55-40.5%

HUN Fair Value - Key Data

Market Cap (mil)3,342
P/E-
Forward P/E19.6x
EPS-0.69
Avg earnings growth rate3.6%
TTM earnings-119

HUN Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.