Latest Ratios: P/E Ratio 16.1x · EV/EBITDA 8.4x · ROE 8.0%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $7.6B | $7.4B | $10.8B | $10.7B | $10.2B | $16.6B | $13.7B | $11.0B | $10.4B | $13.5B | $11.2B |
| Enterprise Value | $12.1B | $11.9B | $15.2B | $15.3B | $14.8B | $21.6B | $18.7B | $16.6B | $16.4B | $19.9B | $17.6B |
| P/E Ratio → | 16.14 | 15.57 | 11.91 | 11.99 | 12.83 | 19.35 | 28.65 | 14.46 | 9.67 | 9.18 | 12.88 |
| P/S Ratio | 0.86 | 0.84 | 1.15 | 1.17 | 0.97 | 1.58 | 1.62 | 1.19 | 1.03 | 1.42 | 1.25 |
| P/B Ratio | 1.27 | 1.22 | 1.84 | 1.94 | 1.94 | 2.86 | 2.24 | 1.82 | 1.78 | 2.43 | 2.42 |
| P/FCF | 17.85 | 17.40 | 15.65 | 19.64 | 27.94 | 15.92 | 12.93 | 10.23 | 10.29 | 13.43 | 14.71 |
| P/OCF | 7.80 | 7.61 | 8.37 | 7.81 | 10.43 | 10.24 | 9.41 | 7.30 | 6.77 | 8.17 | 8.06 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.36 | 1.62 | 1.66 | 1.41 | 2.06 | 2.21 | 1.79 | 1.62 | 2.09 | 1.96 |
| EV / EBITDA | 8.37 | 8.23 | 8.06 | 9.61 | 9.50 | 10.78 | 11.03 | 8.56 | 7.90 | 9.42 | 8.28 |
| EV / EBIT | 12.98 | 15.32 | 11.74 | 11.70 | 12.80 | 16.99 | 25.50 | 14.82 | 10.62 | 13.01 | 13.17 |
| EV / FCF | — | 28.04 | 22.08 | 28.05 | 40.74 | 20.79 | 17.70 | 15.43 | 16.15 | 19.73 | 23.15 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 21.1% | 21.1% | 24.4% | 22.4% | 19.5% | 24.0% | 23.7% | 24.3% | 24.0% | 26.1% | 27.4% |
| Operating Margin | 10.6% | 10.6% | 14.7% | 11.9% | 10.3% | 14.0% | 13.3% | 14.3% | 14.6% | 16.1% | 17.2% |
| Net Profit Margin | 5.4% | 5.4% | 9.6% | 9.7% | 7.5% | 8.2% | 5.6% | 8.2% | 10.7% | 15.5% | 9.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.0% | 8.0% | 15.9% | 16.6% | 14.4% | 14.4% | 7.9% | 12.7% | 18.9% | 28.9% | 20.0% |
| ROA | 3.2% | 3.2% | 6.1% | 6.1% | 5.3% | 5.4% | 3.0% | 4.7% | 6.8% | 9.4% | 5.6% |
| ROIC | 6.7% | 6.7% | 10.1% | 8.2% | 7.8% | 10.0% | 7.4% | 8.5% | 9.3% | 10.0% | 10.6% |
| ROCE | 7.5% | 7.5% | 11.2% | 9.3% | 9.0% | 11.0% | 8.0% | 9.3% | 10.5% | 11.0% | 11.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.84 | 0.84 | 0.90 | 0.93 | 0.98 | 0.95 | 0.92 | 0.96 | 1.05 | 1.17 | 1.43 |
| Debt / EBITDA | 3.52 | 3.52 | 2.79 | 3.22 | 3.30 | 2.75 | 3.31 | 2.99 | 2.97 | 3.10 | 3.11 |
| Net Debt / Equity | — | 0.75 | 0.76 | 0.83 | 0.89 | 0.87 | 0.83 | 0.92 | 1.01 | 1.14 | 1.39 |
| Net Debt / EBITDA | 3.12 | 3.12 | 2.35 | 2.88 | 2.98 | 2.52 | 2.97 | 2.89 | 2.86 | 3.01 | 3.02 |
| Debt / FCF | — | 10.64 | 6.43 | 8.41 | 12.80 | 4.86 | 4.77 | 5.20 | 5.85 | 6.30 | 8.45 |
| Interest Coverage | 3.73 | 3.73 | 5.99 | 5.82 | 6.16 | 6.64 | 3.59 | 5.05 | 6.48 | 6.26 | 5.17 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.37 | 1.37 | 1.51 | 1.35 | 1.16 | 1.56 | 1.74 | 1.86 | 1.82 | 1.59 | 1.60 |
| Quick Ratio | 0.63 | 0.63 | 0.78 | 0.70 | 0.58 | 1.06 | 1.06 | 0.93 | 0.96 | 0.82 | 0.81 |
| Cash Ratio | 0.21 | 0.21 | 0.31 | 0.21 | 0.15 | 0.15 | 0.28 | 0.11 | 0.12 | 0.10 | 0.10 |
| Asset Turnover | — | 0.59 | 0.62 | 0.63 | 0.72 | 0.68 | 0.53 | 0.58 | 0.63 | 0.59 | 0.58 |
| Inventory Turnover | 3.49 | 3.49 | 3.57 | 4.24 | 4.48 | 5.30 | 4.68 | 4.21 | 4.86 | 4.66 | 4.62 |
| Days Sales Outstanding | — | 41.66 | 45.60 | 45.79 | 44.24 | 55.01 | 65.33 | 54.27 | 53.48 | 53.17 | 49.41 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 5.0% | 5.2% | 3.5% | 3.5% | 3.7% | 2.3% | 2.6% | 3.1% | 3.0% | 2.2% | 2.4% |
| Payout Ratio | 80.4% | 80.4% | 41.9% | 42.1% | 48.0% | 43.8% | 74.9% | 45.2% | 29.4% | 20.1% | 31.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.2% | 6.4% | 8.4% | 8.3% | 7.8% | 5.2% | 3.5% | 6.9% | 10.3% | 10.9% | 7.8% |
| FCF Yield | 5.6% | 5.7% | 6.4% | 5.1% | 3.6% | 6.3% | 7.7% | 9.8% | 9.7% | 7.4% | 6.8% |
| Buyback Yield | 1.3% | 1.4% | 2.8% | 1.4% | 9.9% | 6.0% | 0.4% | 3.0% | 3.8% | 2.6% | 1.3% |
| Total Shareholder Yield | 6.3% | 6.5% | 6.3% | 4.9% | 13.6% | 8.3% | 3.1% | 6.1% | 6.9% | 4.8% | 3.7% |
| Shares Outstanding | — | $116M | $118M | $119M | $125M | $137M | $137M | $139M | $143M | $146M | $148M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying EMN stock.
Eastman Chemical Company's current P/E ratio is 16.1x. The historical average is 18.2x. This places it at the 68th percentile of its historical range.
Eastman Chemical Company's current EV/EBITDA is 8.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.6x.
Eastman Chemical Company's return on equity (ROE) is 8.0%. The historical average is 16.1%.
Based on historical data, Eastman Chemical Company is trading at a P/E of 16.1x. This is at the 68th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Eastman Chemical Company's current dividend yield is 4.98% with a payout ratio of 80.4%.
Eastman Chemical Company has 21.1% gross margin and 10.6% operating margin. Operating margin between 10-20% is typical for established companies.
Eastman Chemical Company's Debt/EBITDA ratio is 3.5x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Persistent YoY revenue contraction
Metrics are mathematically derived from official filings.
Margin Recovery from Cyclical Lows
Gross margin rebounded to 22.3% in Q2 2026 from 19.8% in Q1, per reported figures, yet remains below the 24-25% range seen in 2024, suggesting incomplete recovery.
The sequential margin expansion reflects improved price-cost spreads and volume leverage, but the TTM operating margin of 10.64% is still compressed versus the 14-16% levels of early 2024. This indicates that while the trough may be past, the company has not fully regained its pricing power or cost absorption. The Q2 net margin of 7.3% was flattered by a $49M tax benefit, so underlying profitability is likely closer to 5-6%, warranting caution when extrapolating forward.
ROIC Recovery Still Below Historical Peaks
ROIC improved to 2.2% in Q2 2026 from 0.9% in Q4 2025, per financial statements, but remains well below the 2.6-2.8% levels of 2024, indicating a slow recovery.
The sequential improvement in ROIC is driven by margin recovery rather than asset efficiency, as asset turnover has remained flat at 0.16. The company's heavy capital investment in molecular recycling facilities has expanded the asset base, diluting returns in the near term. Investors should monitor whether ROIC can return to the 3%+ range as the Kingsport facility ramps up and contributes to higher-margin specialty volumes.
Working Capital Drag Eases Sequentially
Cash conversion cycle improved to 49 days in Q2 2026 from 68 days in Q1, per reported data, driven by lower DIO and higher DPO, though DSO remains elevated at 47 days.
The reduction in DIO from 105 to 97 days suggests inventory destocking is progressing, while DPO rose to 95 days, indicating the company is stretching supplier payments. However, DSO has remained sticky around 47-55 days, reflecting slower collections in a soft demand environment. The working capital release contributed to positive FCF in Q2, but the volatility in CCC across quarters highlights the cyclicality of EMN's cash conversion.
Leverage Elevated but Manageable
Debt/EBITDA rose to 11.8x in Q2 2026 from 10.4x in Q4 2024, per reported figures, as EBITDA contracted, though interest coverage improved to 5.5x on higher operating income.
The D/E ratio of 0.84 appears understated given the company's $5.2B debt load, and the true leverage is better reflected in the D/EBITDA multiple, which is elevated due to depressed EBITDA. Interest coverage of 5.5x is comfortable but down from 6.3x in 2024, indicating that debt service is absorbing a larger share of operating income. The company's investment-grade profile appears intact, but the heavy capex for circular projects may pressure leverage if EBITDA does not recover further.
Liquidity Buffer Strengthens Modestly
Current ratio improved to 1.50 in Q2 2026 from 1.39 in Q1 2024, per balance sheet data, but the quick ratio of 0.76 highlights inventory dependence for short-term obligations.
The current ratio is adequate, but the quick ratio below 1.0 indicates that EMN relies on inventory conversion to meet near-term liabilities, which is typical for a chemical manufacturer. Cash of $691M provides a modest cushion, but the negative TTM FCF of -$1.1B suggests that internal cash generation is insufficient to cover capex and dividends, potentially requiring external financing or reduced distributions if the recovery stalls.
Misapplied Metric: Debt-to-Equity
The reported D/E of 0.84% is misleadingly low for a capital-intensive chemical firm, per data, obscuring the true leverage when compared to D/EBITDA of 11.8x.
Analysts often screen on D/E, but for EMN, this metric understates leverage because equity is inflated by retained earnings and LIFO reserves, while debt is substantial. The more relevant measure is D/EBITDA, which at 11.8x is elevated and signals higher financial risk. Additionally, pension obligations and operating leases are not captured in D/E, so investors should use net debt to EBITDA or adjusted leverage ratios to assess EMN's true balance sheet strength.