Chemicals · NYSE
Current Price
$65.09
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Celanese Corporation with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Open DCF Calculator for CECelanese Corporation, a technology and specialty materials company, manufactures and sells high performance engineered polymers in the United States and internationally. The company operates through three segments: Engineered Materials, Acetate Tow, and Acetyl Chain. The Engineered Materials segment develops, produces, and supplies specialty polymers for automotive and medical applications, as well as for use in industrial products and consumer electronics. It also offers acesulfame potassium, a sweetener for use in various beverages, confections, and dairy products; and food protection ingredients, such as potassium sorbate and sorbic acid for use in foods, beverages, and personal care products. The Acetate Tow segment provides acetate tows and flakes for use in filter products applications. The Acetyl Chain segment produces and supplies acetyl products, including acetic acid, vinyl acetate monomers, acetic anhydride, and acetate esters that are used as starting materials for colorants, paints, adhesives, coatings, and pharmaceuticals; and organic solvents and intermediates for pharmaceutical, agricultural, and chemical products. It also offers vinyl acetate-based emulsions for use in paints and coatings, adhesives, construction, glass fiber, textiles, and paper applications; and ethylene vinyl acetate resins and compounds, as well as low-density polyethylene for use in flexible packaging films, lamination film products, hot melt adhesives, automotive parts, and carpeting applications. In addition, it manufactures ultra-high molecular weight polyethylene. Celanese Corporation was founded in 1918 and is headquartered in Irving, Texas.
ROIC (TTM)
-3.6%
ROE (TTM)
-25.1%
FCF Yield
11.02%
Based on trailing twelve-month data, CE shows a free cash flow per share of N/A and a ROIC of -3.6%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 11.02% are important context metrics when evaluating CE's stock valuation relative to peers.
The intrinsic value of CE depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether CE is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $65.09. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Celanese Corporation: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Chemicals industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting CE's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Celanese Corporation, this means projecting how much free cash flow the Chemicals will produce over the next 5-10 years, then discounting those amounts to today's dollars. CE's ROIC of -3.6% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For CE, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
