EMN

Eastman Chemical CompanyBasic Materials / Specialty ChemicalsINTACT

Eastman Chemical Company operates as a specialty materials company in the United States, China, and internationally. The company's Additives & Functional Products segment offers amine derivative-based building blocks, intermediates for surfactants, metam-based soil fumigants, and organic acid-based solutions; specialty coalescent and solvents, paint additives, and specialty polymers; and heat transfer and aviation fluids. It serves transportation, personal care, wellness, food, feed, agriculture, building and construction, water treatment, energy, consumables, durables, and electronics markets. Its Advanced Materials segment provides copolyesters, cellulosic biopolymers, polyvinyl butyral sheets, polyester films and window and protective films for value-added end uses in the transportation, durables, electronics, building and construction, medical and pharma, and consumables end-markets. The company's Chemical Intermediates segment offers olefin and acetyl derivatives, methylamines and salts, higher amines and solvents, ethylene, and commodity solvents; and primary non-phthalate and phthalate plasticizers, and niche non-phthalate plasticizers for industrial chemicals and processing, building and construction, health and wellness, and food and feed. Its Fibers segment provides cellulose acetate tow, triacetin, cellulose acetate flake, acetic acid, and acetic anhydride for use in filtration media primarily cigarette filters; natural and solution dyed acetate yarns, and staple fiber for use in consumables, and health and wellness markets; and wet-laid nonwoven media, specialty and engineered papers, and cellulose acetate fibers for transportation, industrial, agriculture and mining, and aerospace markets. Eastman Chemical Company was founded in 1920 and is headquartered in Kingsport, Tennessee.

Share Price
$68.11
52W: $56.11 - $83.47
DCF Fair Value
$53.31
-27.8% Premium
P/E (TTM)
17.7x
ROIC
9.7%
Operating Margin
12.9%
FCF Yield
7%
Debt / Equity
0.89x
Piotroski Score
7/9
Altman Z-Score
3.84
Market Cap
$7.8B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($53.31)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$53.31
MOS Buy Target (-25%)
$39.98
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$68.11
DCF Fair Value
$53.36
-27.6% Premium
$545M
$100M$545M (Reported)$50,000M
6.5%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$4,800M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$4.7B
PV of Terminal Value
$6.2B
Implied Enterprise Value
$10.9B
Implied Equity Value
$6.1B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$580$618$658$701$747$780$815$852$890$931
Present Value (PV)$533$520$508$497$485$465$446$428$410$393

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-0.4% Premium
$67.87

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $3.84BVPS: $53.32
Revised Graham Formula-6.3% Premium
$64.06

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings6.7% Yield
$4.54 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $0.5BYield: 6.7%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER
1.1% CAGR (Next 10 Yrs)

At the current price of $68.11, the market is assuming the business will compound Free Cash Flow at 1.1% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
✓ Low market hurdle: Easy for a wide-moat compounder to beat.
Autonomous Thesis Underwriting

Surveil EMN with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Eastman Chemical Company. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 12.9% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: Eastman Chemical Company (EMN) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Eastman Chemical Company.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Eastman Chemical Company has an estimated DCF intrinsic fair value of $53.31 per share compared to its current market price of $68.11. This represents an estimated 27.8% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $67.87.

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