Albemarle Corporation (ALB) Stock Valuation — PE Analysis
Chemicals - Specialty · NYSE
Current Price
$106.35
PE Ratio (TTM)
221.6x
Intrinsic Value
$73.89
-43.9% margin of safety
COMPETITIVE MOAT
↑Proprietary Lithium Extraction Technology
Albemarle possesses unique, patented technologies for extracting lithium from brine resources. This provides a cost advantage and operational efficiency over competitors.
↑Long-Term Customer Contracts
The company secures significant revenue through multi-year supply agreements with major battery and automotive manufacturers. These contracts create customer stickiness and predictable demand.
↑Global Scale and Resource Access
Albemarle operates large-scale, low-cost lithium extraction facilities in key regions. This global footprint and access to prime resources are difficult for new entrants to replicate.
INVESTMENT RISKS
↓Project Execution and Ramp-Up Delays
Delays in bringing new lithium production capacity online can hinder sales volume growth and impact financial performance. This is critical for meeting expanding demand.
↓Geopolitical and Regulatory Environment
Operating in multiple countries exposes Albemarle to varying political risks and environmental regulations. Changes in these factors can affect operational costs and access to resources.
↓Intensifying Competition and New Entrants
The high demand for lithium attracts new players and existing competitors are expanding capacity. This can lead to increased price competition and market share erosion.
Base case
ALB base case PE valuation
At a current price of $106.35, the base case PE valuation puts ALB fair value near $73.89 per share. That figure assumes 2.3% yearly earnings growth, a target PE multiple of 50x, and a 10% discount rate.
Intrinsic Value
$73.89
Margin of safety
-43.9%
Expected annual return
-7.0%
Base case assumptions: 2.3% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-06.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the ALB PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Albemarle Corporation respond.
Open PE Calculator for ALBCompany Overview
Albemarle Corporation stands as a global innovator, producing and distributing a diverse portfolio of engineered specialty chemicals. Its business operations are divided into three principal segments: Lithium, Bromine, and Catalysts. The Lithium division supplies a variety of lithium compounds, including lithium carbonate, hydroxide, and chloride, alongside critical reagents like butyllithium. These materials are vital for manufacturing lithium-ion batteries found in electric vehicles and consumer electronics, as well as for high-performance greases, thermoplastic elastomers used in tires and plastics, and as catalysts for chemical reactions, organic synthesis in areas like steroid chemistry, vitamins, and the pharmaceutical industry. This segment also delivers cesium products for chemical and pharmaceutical applications, zirconium, barium, and titanium for pyrotechnic devices such as airbag initiators, offers expert technical services for the safe handling of reactive lithium products, and provides recycling solutions for lithium-containing by-products. The Bromine segment focuses on bromine and bromine-based fire safety compounds. It produces an array of specialty chemicals, including elemental bromine, various bromides, and brominated powdered activated carbon, which are utilized in chemical synthesis, fluids for oil and gas drilling, mercury emission control, water purification, and food processing. Additionally, it provides tertiary amines, which serve as key ingredients in surfactants, biocides, and sanitizers. Finally, the Catalysts segment offers a range of catalytic agents, including those for hydroprocessing, isomerization, and alkylation, alongside fluidized catalytic cracking (FCC) catalysts and additives, as well as organometallics and curatives. Albemarle's products are integral to numerous industries, including energy storage, petroleum refining, consumer electronics, construction, automotive, lubricants, pharmaceuticals, and crop protection. Established in 1887, the company's headquarters are located in Charlotte, North Carolina.
Financial Metrics — ALB PE Stock Valuation Data
PE Ratio (TTM)
221.6x
PEG Ratio
n/m
Earnings Yield
1.79%
ROE (TTM)
2.3%
Revenue/Share (TTM)
$50.08
Dividend Yield
1.53%
Debt/Equity
0.19x
Frequently Asked Questions
What is the PE ratio of ALB?
The trailing twelve-month PE ratio of ALB reflects how much investors pay per dollar of Albemarle Corporation's earnings. This metric is most useful when compared to Chemicals - Specialty peers and the company's own historical range.
Is ALB overvalued based on PE ratio?
ALB's PE of 221.6x combined with a PEG ratio of -0.22 provides a growth-adjusted perspective. ALB has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Chemicals - Specialty, a DCF analysis may be more appropriate.
How do I value ALB stock using PE ratio?
To value Albemarle Corporation using PE: (1) Compare the current PE (221.6x) against the Chemicals - Specialty median to assess relative pricing, (2) check the PEG ratio (-0.22) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of ALB?
ALB's PEG ratio is -0.22, calculated by dividing the PE ratio (221.6x) by the expected earnings growth rate. Because ALB has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for ALB stock valuation?
PE ratio gives a quick relative read — how ALB is priced versus Chemicals - Specialty peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See ALB DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Basic Materials valuationsP/E and DCF value ALB with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-06. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.