Today, we delve into the valuation of DuPont de Nemours Inc (DD, Financial), a diversified global specialty chemicals company. The stock experienced a daily gain of 1.09%, and a 3-month gain of 4.41%. With an Earnings Per Share (EPS) (EPS) of 9.69, we aim to answer the question: is the stock modestly undervalued? This article provides a comprehensive valuation analysis of DuPont de Nemours, and we encourage you to read on for more insights.
Company Overview
DuPont de Nemours, a result of the DowDuPont merger and subsequent separations in 2019, is a diversified global specialty chemicals company. Its portfolio includes specialty chemicals and downstream products serving various industries such as electronics and communication, automotive, construction, safety and protection, and water management. The company has the advantage of producing patented specialty chemicals that command pricing power. Noteworthy products include Kevlar, Tyvek, and Nomex, which have evolved over time to enable a wide range of applications across multiple industries.
The company's stock price currently stands at $74.12, while the GF Value, an estimation of fair value, is $88.85. This comparison sets the stage for a deeper exploration of the company's value.
Understanding GF Value
The GF Value is a proprietary measure that represents the current intrinsic value of a stock. It is derived from three key factors: historical multiples that the stock has traded at, GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance.
The GF Value Line on our summary page provides an overview of the fair value that the stock should ideally be traded at. If the stock price is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. Conversely, if it is significantly below the GF Value Line, its future return will likely be higher.
Based on GuruFocus' valuation method, the stock of DuPont de Nemours is believed to be modestly undervalued. Since DuPont de Nemours is relatively undervalued, the long-term return of its stock is likely to be higher than its business growth.
