Is Cabot (CBT) Pricing Reflect Its DCF Upside After Recent Share Price Weakness

Simply Wall St.02-05 02:33

If you are wondering whether Cabot shares are priced fairly or if there is still value on the table, this article walks through what the current valuation is really telling you. The stock closed at US...

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The stock closed at US...</p>\n\n<a href=\"https://simplywall.st/stocks/us/materials/nyse-cbt/cabot/news/is-cabot-cbt-pricing-reflect-its-dcf-upside-after-recent-sha\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Cabot (CBT) Pricing Reflect Its DCF Upside After Recent Share Price Weakness</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Cabot (CBT) Pricing Reflect Its DCF Upside After Recent Share Price Weakness\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-05 02:33 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/materials/nyse-cbt/cabot/news/is-cabot-cbt-pricing-reflect-its-dcf-upside-after-recent-sha><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether Cabot shares are priced fairly or if there is still value on the table, this article walks through what the current valuation is really telling you. The stock closed at US...</p>\n\n<a href=\"https://simplywall.st/stocks/us/materials/nyse-cbt/cabot/news/is-cabot-cbt-pricing-reflect-its-dcf-upside-after-recent-sha\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"CBT","symbol_name":"卡博特","start_time":0,"source_url":"https://simplywall.st/stocks/us/materials/nyse-cbt/cabot/news/is-cabot-cbt-pricing-reflect-its-dcf-upside-after-recent-sha","article_id":"2609890318","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/2021000-choice1-main-header/1585186559642"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/materials/nyse-cbt/cabot/news/is-cabot-cbt-pricing-reflect-its-dcf-upside-after-recent-sha","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2609890318","pubTimestamp":1770230005,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether Cabot shares are priced fairly or if there is still value on the table, this article walks through what the current valuation is really telling you.\nThe stock closed at US$71.29, with returns of 6.3% over the past month, 6.3% year to date and a 17.2% decline over the last year. These moves may have shifted how investors think about both upside potential and risk.\nRecent coverage has focused on Cabot as a specialty chemicals player and how investor sentiment...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"CBT":"卡博特","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","BK4090":"商品化工"},"translate_title":"卡博特(CBT)的定价是否反映了近期股价疲软后其DCF上涨空间","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DCF":1.5,"CBT":1.5},"content_text":"If you are wondering whether Cabot shares are priced fairly or if there is still value on the table, this article walks through what the current valuation is really telling you. The stock closed at US$71.29, with returns of 6.3% over the past month, 6.3% year to date and a 17.2% decline over the last year. These moves may have shifted how investors think about both upside potential and risk. Recent coverage has focused on Cabot as a specialty chemicals player and how investor sentiment toward materials stocks has been reflected in its share price over different time frames. Together, these moves and headlines set the scene for a closer look at whether the current price lines up with the underlying fundamentals. Cabot currently has a valuation score of 2 out of 6, which means it screens as undervalued on 2 of the 6 checks we will walk through next. We will then compare those standard valuation approaches with a broader way to think about value at the end of the article.  Cabot scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. AdvertisementApproach 1: Cabot Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model estimates what a business might be worth today by projecting its future cash flows and discounting them back to a present value. It is essentially asking what a stream of expected future cash in your pocket is worth in today’s dollars. For Cabot, the model used is a 2 Stage Free Cash Flow to Equity approach built on cash flow projections. The latest twelve month free cash flow sits at about $414.2 million, and analysts have provided explicit forecasts for the next few years. Simply Wall St extends those further out to 2035 using its own assumptions. For example, the model includes projected free cash flow of $296 million in 2027, with additional estimates each year through 2035, all in dollars. Adding up and discounting these projected cash flows leads to an estimated intrinsic value of about $83.54 per share. Compared with the recent share price of $71.29, the DCF output points to roughly a 14.7% discount, which suggests the stock currently screens as undervalued on this model. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Cabot is undervalued by 14.7%. Track this in your watchlist or portfolio, or discover 868 more undervalued stocks based on cash flows. CBT Discounted Cash Flow as at Feb 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Cabot. Approach 2: Cabot Price vs Earnings For a profitable company, the P/E ratio is a useful way to link what you pay per share to the earnings the business is currently generating. It gives you a quick sense of how many dollars investors are paying for each dollar of earnings. What counts as a normal or fair P/E often reflects how the market views a company’s growth potential and risk. Higher expected growth or lower perceived risk can support a higher multiple, while slower growth or higher risk usually points to a lower one. Cabot is trading on a P/E of about 11.42x. That sits below the Chemicals industry average of roughly 24.34x and above a peer group average of about 5.97x. These simple comparisons are a helpful starting point, but they do not adjust for Cabot’s specific earnings growth profile, profit margins, size or risk characteristics. Simply Wall St’s Fair Ratio is designed to do exactly that. It estimates a P/E that would be reasonable for Cabot given factors such as its earnings growth, industry, margins, market cap and risk. Because this metric is not provided here, we cannot compare it directly to the current 11.42x P/E, so this approach does not give a clear under or overvaluation signal on its own. Result: ABOUT RIGHT NYSE:CBT P/E Ratio as at Feb 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1422 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Cabot Narrative Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives, which are simply your story about a company tied directly to numbers such as your fair value, and your expectations for future revenue, earnings and margins. On Simply Wall St’s Community page, used by millions of investors, a Narrative lets you connect three pieces in one place: what you think Cabot’s business story is, how that story flows into a financial forecast, and what fair value that forecast implies for the shares. Because each Narrative produces its own fair value, you can compare that fair value with Cabot’s current share price and decide whether the stock looks attractive to you, or whether you prefer to wait or reduce your exposure. Narratives are also refreshed when new information comes in, such as news or earnings updates. This means your story and the numbers that follow from it can stay aligned without you having to rebuild everything from scratch. For example, one Cabot Narrative might assume a higher fair value based on stronger long term revenue and margin expectations, while another uses more cautious assumptions and lands on a lower fair value. This gives you a clear sense of how reasonable people can disagree and what that means for your own decision. Do you think there's more to the story for Cabot? Head over to our Community to see what others are saying! NYSE:CBT 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    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\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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