Eastman Chemical Company (EMN) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+19.1%

$79.87

vs $67.08 price

Levered DCF

$40.30

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.33

Grey zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	15.46×	11.78×	11.91×	12.69×	19.04×	28.41×	14.36×	9.56×
P/B	1.23×	1.84×	1.95×	1.95×	2.86×	2.26×	1.83×	1.78×
P/S	0.84×	1.14×	1.16×	0.95×	1.56×	1.61×	1.18×	1.02×
EV / EBITDA	9.18×	8.36×	8.44×	9×	11.8×	14.24×	9.53×	7.58×
Gross margin	21.1%	24.4%	22.4%	19.5%	24.0%	23.7%	24.3%	24.0%
Operating margin	10.6%	14.7%	11.9%	10.3%	14.0%	13.3%	14.3%	14.6%
Net margin	5.4%	9.6%	9.7%	7.5%	8.2%	5.6%	8.2%	10.7%
Current ratio	1.37×	1.51×	1.35×	1.16×	1.56×	1.74×	1.86×	1.82×
Debt / equity	0.85×	0.91×	0.94×	1×	0.97×	0.93×	0.97×	1.06×
Interest coverage	4.48×	6.37×	4.87×	5.77×	7.65×	5.49×	5.99×	6.19×
Dividend yield	5.2%	3.6%	3.5%	3.8%	2.3%	2.6%	3.1%	3.1%
Payout ratio	80.4%	41.9%	42.1%	48.0%	43.8%	74.9%	45.2%	29.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.0%	15.7%	16.4%	15.4%	15.0%	7.9%	12.7%	18.6%
Return on invested capital	6.1%	8.9%	7.1%	7.0%	8.8%	7.2%	7.8%	8.5%
Return on assets	3.2%	5.9%	6.1%	5.4%	5.5%	3.0%	4.7%	6.8%
Free cash flow yield	5.8%	6.5%	5.1%	3.6%	6.4%	7.8%	9.9%	9.8%
Earnings yield	6.5%	8.5%	8.4%	7.9%	5.3%	3.5%	7.0%	10.5%
Enterprise value	$11.8B	$15.1B	$15.2B	$14.7B	$21.4B	$18.6B	$16.5B	$16.3B
Net debt / EBITDA	3.5×	2.45×	2.54×	2.85×	2.79×	3.86×	3.23×	2.77×
Cash conversion cycle (days)	82	81	72	69	68	98	95	85