Eastman's focus on high-performance specialty materials creates differentiated products. This allows for premium pricing and customer loyalty in niche markets.

↑Proprietary Technology & Innovation

The company invests heavily in R&D, developing unique manufacturing processes and innovative product formulations. This intellectual property is difficult for competitors to replicate.

↑Integrated Manufacturing & Scale

Eastman benefits from its large-scale, integrated production facilities. This provides cost advantages and operational efficiencies that smaller players cannot match.

INVESTMENT RISKS

↓Commodity Price Volatility

Input costs for raw materials are subject to global market fluctuations. Significant price swings can impact profitability and margins.

↓Regulatory & Environmental Scrutiny

The chemical industry faces increasing environmental regulations and public scrutiny. Compliance costs and potential liabilities pose ongoing risks.

↓Economic Sensitivity & Cyclicality

Demand for Eastman's products is tied to broader economic conditions. Downturns in key end markets can lead to reduced sales and earnings.

Base case

EMN base case PE valuation

A base case PE valuation for EMN estimates a fair value of about $60.74 per share, against a current price of $75.22. The model assumes 0.7% annual earnings growth, a 21x target PE multiple, and a 10% discount rate.

Intrinsic Value

$60.74

Margin of safety

-23.8%

Expected annual return

-4.2%

Base case assumptions: 0.7% annual earnings growth, 21x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.

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 EMN PE valuation

Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Eastman Chemical Company respond.

Open PE Calculator for EMN

Or try DCF Valuation for EMN →

Company Overview

Eastman Chemical Company functions as a worldwide provider of specialized materials. Its Additives & Functional Products division offers a comprehensive range, including hydrocarbon and rosin resins, organic acid-based solutions, and amine-derived building blocks. This segment also provides agricultural chemicals like metam-based soil fumigants, thiram and ziram fungicides, and plant growth regulators. Additional offerings include specialty coalescents, various commodity and specialty solvents, paint additives, specialty polymers, heat transfer and aviation fluids, and rubber additives such as insoluble sulfur and anti-degradants, along with performance resins. These products cater to diverse sectors such as transportation, personal care, wellness, food, agriculture, construction, water treatment, energy, consumables, durables, and electronics. The Advanced Materials segment produces high-performance products including copolyesters, cellulosic biopolymers, cellulose esters, and polyvinyl butyral (PVB) sheets. It further supplies a variety of window and protective films, including those applied aftermarket, for high-value applications in transportation, consumer durables, electronics, building and construction, medical, pharmaceutical, and general consumables markets. Through its Chemical Intermediates segment, Eastman delivers essential chemical building blocks. This encompasses methylamines and their salts, various higher amines and solvents, olefin and acetyl derivatives, ethylene, and both primary phthalate and non-phthalate plasticizers, including specialized non-phthalate alternatives. These intermediates are vital for industrial chemical processes, construction, health and wellness products, and agrochemical formulations. Lastly, the Fibers segment is a significant producer of cellulose acetate tow, triacetin, cellulose acetate flake, acetic acid, and acetic anhydride, primarily for filtration media, notably cigarette filters. It also furnishes natural and solution-dyed acetate yarns for consumables and health and wellness markets, alongside wet-laid nonwoven media, specialty engineered papers, and cellulose acetate fibers for the transportation, industrial, agriculture, mining, and aerospace industries. Eastman Chemical Company was founded in 1920 and is headquartered in Kingsport, Tennessee.

Financial Metrics — EMN PE Stock Valuation Data

PE Ratio (TTM)

21.5x

PEG Ratio

n/m

Earnings Yield

4.65%

ROE (TTM)

6.8%

Revenue/Share (TTM)

$75.78

Dividend Yield

4.45%

Debt/Equity

0.89x

Frequently Asked Questions

What is the PE ratio of EMN?

The trailing twelve-month PE ratio of EMN reflects how much investors pay per dollar of Eastman Chemical Company's earnings. This metric is most useful when compared to Chemicals peers and the company's own historical range.

Is EMN overvalued based on PE ratio?

EMN's PE of 21.5x combined with a PEG ratio of -0.38 provides a growth-adjusted perspective. EMN 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, a DCF analysis may be more appropriate.

How do I value EMN stock using PE ratio?

To value Eastman Chemical Company using PE: (1) Compare the current PE (21.5x) against the Chemicals median to assess relative pricing, (2) check the PEG ratio (-0.38) 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 EMN?

EMN's PEG ratio is -0.38, calculated by dividing the PE ratio (21.5x) by the expected earnings growth rate. Because EMN 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 EMN stock valuation?

PE ratio gives a quick relative read — how EMN is priced versus Chemicals 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 EMN 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

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P/E and DCF value EMN with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.

Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.

This is an estimate, not investment advice.