LYB LyondellBasell Industries N.V.
$63.52
Stable Earnings Power 40%
P/Adj-EPS × Normalized Multiple
Strong · Conviction

Undervalued

Trading 41.6% below fair value

You pay $63.52
Bear $86.98
Fair $108.72
Bull $130.46
Bear $86.98 +36.9% $7.25 × 12x P/E
Fair $108.72 +71.1% $7.25 × 15x P/E
Bull $130.46 +105.4% $7.25 × 18x P/E

Adjust Assumptions

15.0x
7.25$

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 8.8x

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above.

Average Target (40 analysts) $70.60
Divergence from AlphaVal 54%

Summary

Applying a 15x P/E to adjusted EPS of $7.25, the base-case value is $108.72 per share.

Warnings

Wall Street's average price target is $70.60 (from 40 analysts). Our estimate is 54% above the consensus -- consider that gap carefully.

Key Risks

  • Growth DCF inappropriate — terminal value assumptions dominate
  • EV/EBITDA misleading for regulated businesses where capex is mandated
  • Regulatory risk is a fat tail not visible in normal multiples