Element Solutions Inc (ESI) 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

-50.6%

$17.09

vs $34.61 price

Levered DCF

$13.15

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

2.52

Grey zone

Rating

B-

Overall 2 / 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	31.63×	25.18×	47.22×	23.93×	29.61×	59.1×	33.37×	-9.06×
P/B	2.26×	2.58×	2.4×	1.91×	2.42×	1.9×	1.35×	1.39×
P/S	2.37×	2.51×	2.39×	1.75×	2.5×	2.38×	1.64×	1.49×
EV / EBITDA	22.02×	15.36×	21.22×	12.45×	16.08×	18.61×	11.4×	19.62×
Gross margin	42.0%	42.2%	39.4%	37.4%	40.0%	42.4%	42.9%	42.7%
Operating margin	13.4%	14.0%	7.4%	12.8%	12.5%	12.6%	13.6%	12.7%
Net margin	7.5%	9.9%	5.1%	7.3%	8.5%	4.1%	5.0%	-16.5%
Current ratio	3.68×	3.34×	3.24×	3.45×	2.93×	3.15×	2.84×	2.17×
Debt / equity	0.61×	0.8×	0.87×	0.85×	0.79×	0.68×	0.71×	2.55×
Interest coverage	6.41×	6.11×	3.52×	6.35×	5.53×	3.67×	2.75×	0.8×
Dividend yield	1.3%	1.3%	1.4%	1.8%	1.0%	0.3%	0.0%	0.0%
Payout ratio	40.8%	32.0%	65.5%	41.9%	30.4%	16.4%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	7.1%	10.2%	5.1%	8.0%	8.2%	3.3%	4.2%	-15.4%
Return on invested capital	7.3%	6.4%	3.4%	4.9%	5.1%	5.3%	3.5%	3.0%
Return on assets	3.7%	5.0%	2.4%	3.8%	4.0%	1.7%	2.1%	-3.5%
Free cash flow yield	3.8%	4.8%	5.1%	5.6%	4.6%	5.3%	-0.7%	-1.3%
Earnings yield	3.2%	4.0%	2.1%	4.2%	3.4%	1.7%	3.1%	-11.1%
Enterprise value	$7.1B	$7.7B	$7.3B	$6.2B	$7.6B	$5.7B	$4.4B	$8.1B
Net debt / EBITDA	3.17×	3.08×	5.03×	3.46×	3.44×	4.18×	3.61×	12.5×
Cash conversion cycle (days)	106	97	113	101	109	116	108	100