Assessing NewMarket (NEU) Valuation As Shares Trade Near Half Of DCF Fair Value Estimate

Simply Wall St.02-17 04:16

AdvertisementWhat recent returns say about NewMarket With no single headline event setting the tone, NewMarket (NEU) has been moving under the radar. The stock has shown a 0.7% decline over the past ...

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The stock has shown a 0.7% decline over the past ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/materials/nyse-neu/newmarket/news/assessing-newmarket-neu-valuation-as-shares-trade-near-half\">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>Assessing NewMarket (NEU) Valuation As Shares Trade Near Half Of DCF Fair Value Estimate</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\">\nAssessing NewMarket (NEU) Valuation As Shares Trade Near Half Of DCF Fair Value Estimate\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-17 04:16 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/materials/nyse-neu/newmarket/news/assessing-newmarket-neu-valuation-as-shares-trade-near-half><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>AdvertisementWhat recent returns say about NewMarket With no single headline event setting the tone, NewMarket (NEU) has been moving under the radar. The stock has shown a 0.7% decline over the past ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/materials/nyse-neu/newmarket/news/assessing-newmarket-neu-valuation-as-shares-trade-near-half\">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":"BK7508","symbol_name":"医药生物股","start_time":0,"source_url":"https://simplywall.st/stocks/us/materials/nyse-neu/newmarket/news/assessing-newmarket-neu-valuation-as-shares-trade-near-half","article_id":"2612487290","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/2024000-choice2-main-header/1585186739035"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/materials/nyse-neu/newmarket/news/assessing-newmarket-neu-valuation-as-shares-trade-near-half","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2612487290","pubTimestamp":1771272990,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"What recent returns say about NewMarket\nWith no single headline event setting the tone, NewMarket (NEU) has been moving under the radar. The stock has shown a 0.7% decline over the past day and weaker performance over the past week.\nSee our latest analysis for NewMarket.\nBeyond the latest 0.7% daily share price decline, NewMarket’s recent 7 day and 90 day share price returns of 17.0% and 21.1% point to fading short term momentum. At the same time, 1 year and 3 year total shareholder returns...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK7508":"医药生物股","BK7096":"制药","NEU":"NewMarket","BK4109":"特种化学制品","NEU.AU":"NEUREN PHARMACEUTICALS LTD","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc"},"translate_title":"评估NewMarket(NEU)估值，因为股票交易价格接近DCF公允价值估计的一半","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DCF":1.5,"NEU.AU":1.5,"NEU":1.5},"content_text":"AdvertisementWhat recent returns say about NewMarket With no single headline event setting the tone, NewMarket (NEU) has been moving under the radar. The stock has shown a 0.7% decline over the past day and weaker performance over the past week. See our latest analysis for NewMarket. Beyond the latest 0.7% daily share price decline, NewMarket’s recent 7 day and 90 day share price returns of 17.0% and 21.1% point to fading short term momentum. At the same time, 1 year and 3 year total shareholder returns of 11.1% and 82.1% show a materially stronger longer term picture. If this price action has you thinking about where else to put fresh capital to work, it could be a good moment to broaden your search with our list of 23 top founder-led companies. With NewMarket trading around $592.80 and an intrinsic value model suggesting roughly a 50% discount, the question is simple: is this an overlooked specialty chemicals cash generator, or is the market already pricing in all the growth that matters? Preferred P/E of 13.4x: Is it justified? NewMarket is trading on a P/E of 13.4x, while the last close sits at $592.80 and the SWS DCF model points to a fair value of $1,183.97. The P/E ratio compares the current share price to the company’s earnings, giving you a quick sense of how much investors are paying for each dollar of profit. For a business with high quality earnings, a 23.5% Return on Equity and a record of 17% yearly earnings growth over the past 5 years, a 13.4x multiple against peers on 34.8x suggests the market is pricing NewMarket’s profit stream more cautiously than many other chemicals names. Against the broader US Chemicals industry P/E of 26.8x, NewMarket’s 13.4x stands out as materially lower, which is comparatively strong value in simple multiples terms. That sits alongside the SWS DCF model indicating the shares trade at roughly a 49.9% discount to its future cash flow estimate of $1,183.97, so both earnings based and cash flow based markers currently point in the same direction. See what the numbers say about this price — find out in our valuation breakdown. Result: Price-to-Earnings of 13.4x However, you also have to weigh the recent 17% 7-day pullback and 21.1% 90-day drop, which may hint at shifting sentiment toward petroleum additives. Find out about the key risks to this NewMarket narrative. Another angle on value While the 13.4x P/E makes NewMarket look relatively inexpensive, our DCF model pushes back on the idea that this is just a cheap stock. With the SWS DCF model pointing to a fair value of $1,183.97 versus a $592.80 share price, the gap is hard to ignore. Is the market being cautious, or are DCF assumptions too generous? Look into how the SWS DCF model arrives at its fair value. NEU Discounted Cash Flow as at Feb 2026Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out NewMarket for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 54 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.  Build Your Own NewMarket Narrative If you look at this and feel the story does not quite fit your view, or you would rather lean on your own work, you can frame your version of NewMarket in just a few minutes, starting with Do it your way. A great starting point for your NewMarket research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Ready to hunt for your next idea? If NewMarket has you thinking more broadly about where to put your money to work, do not stop here; the right watchlist can make a real difference.  Target quality at a discount by scanning companies trading below what their fundamentals suggest with our 54 high quality undervalued stocks. Lock in potential income streams by focusing on companies offering strong yields and resilience through the 13 dividend fortresses. Prioritise peace of mind by concentrating on companies with steadier profiles and fewer red flags using the 83 resilient stocks with low risk scores.   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.Valuation is complex, but we're here to simplify it.Discover if NewMarket might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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