Quaker Chemical Corporation

KWR

Basic MaterialsChemicals - SpecialtyNYSE

$143.33

Market Cap: $2.49B

Quaker Chemical Corporation (KWR) Valuation Summary

Updated Apr 14, 2026 22:19

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$36.19 – $262.78	$80.05	-37.5%
Growth Exit 10Y	$33.98 – $225.48	$71.67	-44.1%
EBITDA Exit 5Y	$82.78 – $192.86	$133.29	+4.0%
EBITDA Exit 10Y	$69.51 – $183.19	$118.13	-7.8%
▸ Trading Multiples
P/E	—	N/A	—
EV/EBITDA	$37.24 – $163.19	$124.03	-3.2%
EV/Revenue	$93.90 – $317.77	$170.96	+33.5%
▸ PEG
PEG Fair Value	—	N/A	—
▸ Earnings Power Value
Earnings Power Value	$28.76 – $65.27	$43.31	-66.2%
▸ Dividend Discount
Dividend Discount	—	N/A	—

Valuation History

DCF Analysis

Fair Value

$80.05

Market Price

$143.33

Upside / Downside

-44.1%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Quaker Chemical Corporation's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 4.1% to 1.8% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 84, DPO 60, DIO 76). At a 7.4% WACC with mid-year discounting, the terminal value (80% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $80.05 per share, suggesting KWR is overvalued by 44.1% at the current price of $143.33.

FCFF Present Value Calculation

WACC

7.38%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	142	148	151	154	157	161
(−) Net Interest	41	43	44	45	46	47
(+) D&A	31	33	34	34	38	39
EBITDA	215	224	230	232	241	247

(−) Tax	71	74	76	77	78	80
(−) CapEx	32	34	34	35	36	37
(−) ΔWC	25	18	14	10	10	10
Free Cash Flow (FCFF)	86	98	106	111	117	120

Terminal Value						2,451
WACC / Discount Rate	7.4%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	83	88	88	86	85	1,717

Enterprise Value	2,147
Projection Period	431	20.1%
Terminal Value	1,717	79.9%

(−) Current Net Debt	749

Equity Value	1,399
(/) Outstanding Shares	17

Fair Price	$80.05

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.4%	$119	$139	$166	$204	$263
6.4%	$85	$97	$112	$131	$157
7.4%	$63	$71	$80	$91	$105
8.4%	$48	$53	$59	$66	$75
9.4%	$36	$40	$44	$49	$55

Current price: $143.33. Green = undervalued, Red = overvalued.

Fair Value

$71.67

Market Price

$143.33

Upside / Downside

-50.0%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Quaker Chemical Corporation's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 4.1% to 2.8% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 84, DPO 60, DIO 76). At a 7.4% WACC with mid-year discounting, the terminal value (61% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $71.67 per share, suggesting KWR is overvalued by 50.0% at the current price of $143.33.

FCFF Present Value Calculation

WACC

7.38%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	142	148	151	154	157	160	163	167	172	176	181
(−) Net Interest	41	43	44	45	46	46	47	49	50	51	53
(+) D&A	31	33	34	34	38	34	35	36	36	37	38
EBITDA	215	224	230	232	241	241	246	252	258	265	272

(−) Tax	71	74	76	77	78	80	82	84	86	88	90
(−) CapEx	32	34	34	35	36	36	37	38	39	40	41
(−) ΔWC	25	18	14	10	10	11	12	14	15	17	18
Free Cash Flow (FCFF)	86	98	106	111	117	113	115	116	118	119	122

Terminal Value											2,506
WACC / Discount Rate	7.4%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	83	88	88	86	85	76	72	68	64	61	1,229

Enterprise Value	2,001
Projection Period	772	38.6%
Terminal Value	1,229	61.4%

(−) Current Net Debt	749

Equity Value	1,252
(/) Outstanding Shares	17

Fair Price	$71.67

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.4%	$112	$128	$149	$179	$225
6.4%	$81	$89	$100	$115	$134
7.4%	$60	$65	$72	$80	$90
8.4%	$45	$49	$53	$58	$64
9.4%	$34	$36	$39	$42	$46

Current price: $143.33. Green = undervalued, Red = overvalued.

Fair Value

$133.34

Market Price

$143.33

Upside / Downside

-7.0%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Quaker Chemical Corporation's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 4.1% to 1.8% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 84, DPO 60, DIO 76). At a 7.4% WACC with mid-year discounting, the terminal value (86% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 15.3x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $133.29 per share, suggesting KWR is fairly valued by 7.0% at the current price of $143.33.

FCFF Present Value Calculation

WACC

7.38%

3% – 20%

EV/EBITDA Exit Multiple

15.33x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	142	148	151	154	157	161
(−) Net Interest	41	43	44	45	46	47
(+) D&A	31	33	34	34	38	39
EBITDA	215	224	230	232	241	247

(−) Tax	71	74	76	77	78	—
(−) CapEx	32	34	34	35	36	—
(−) ΔWC	25	18	14	10	10	—
Free Cash Flow (FCF)	86	98	106	111	117	—

Peers' EBITDA Multiple						15.3x
Terminal Value						3,781
WACC / Discount Rate	7.38%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	83	88	88	86	85	2,648

Enterprise Value	3,079
Projection Period	431	14.0%
Terminal Value	2,648	86.0%

(−) Current Net Debt	749
Equity Value	2,330
(÷) Outstanding Shares	17M
Fair Price	$133	-7.0%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	11.3x	13.3x	15.3x	17.3x	19.3x
5.4%	$106	$128	$149	$171	$193
6.4%	$100	$120	$141	$162	$183
7.4%	$94	$114	$133	$153	$173
8.4%	$88	$107	$126	$145	$164
9.4%	$83	$101	$119	$137	$155

Current price: $143.33. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$118.17

Market Price

$143.33

Upside / Downside

-17.6%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Quaker Chemical Corporation's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 4.1% to 2.8% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 84, DPO 60, DIO 76). At a 7.4% WACC with mid-year discounting, the terminal value (73% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 15.3x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $118.13 per share, suggesting KWR is overvalued by 17.6% at the current price of $143.33.

FCFF Present Value Calculation

WACC

7.38%

3% – 20%

EV/EBITDA Exit Multiple

15.33x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	142	148	151	154	157	160	163	167	172	176	181
(−) Net Interest	41	43	44	45	46	46	47	49	50	51	53
(+) D&A	31	33	34	34	38	34	35	36	36	37	38
EBITDA	215	224	230	232	241	241	246	252	258	265	272

(−) Tax	71	74	76	77	78	80	82	84	86	88	—
(−) CapEx	32	34	34	35	36	36	37	38	39	40	—
(−) ΔWC	25	18	14	10	10	11	12	14	15	17	—
Free Cash Flow (FCF)	86	98	106	111	117	113	115	116	118	119	—

Peers' EBITDA Multiple											15.3x
Terminal Value											4,162
WACC / Discount Rate	7.38%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	83	88	88	86	85	76	72	68	64	61	2,041

Enterprise Value	2,814
Projection Period	772	27.4%
Terminal Value	2,041	72.6%

(−) Current Net Debt	749
Equity Value	2,065
(÷) Outstanding Shares	17M
Fair Price	$118	-17.6%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	11.3x	13.3x	15.3x	17.3x	19.3x
5.4%	$110	$128	$146	$165	$183
6.4%	$98	$115	$132	$148	$165
7.4%	$88	$103	$118	$133	$149
8.4%	$78	$92	$106	$120	$134
9.4%	$70	$82	$95	$108	$120

Current price: $143.33. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$105.43

Market Price

$143.33

Upside / Downside

-26.4%

Verdict

Overvalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Quaker Chemical Corporation (KWR) has a fair value of $105.43 based on 6 comparable companies in the Chemicals - Specialty industry.

EV/EBITDA Valuation — Chemicals - Specialty

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Quaker Chemical CorporationKWR	2,504	22.5x	23.3x
Methanex CorporationMEOH	4,402	8.6x	8.2x
The Chemours CompanyCC	3,435	22.1x	22.3x
Olin CorporationOLN	3,201	10.3x	10.9x
Hawkins, Inc.HWKN	3,096	20.3x	21.2x
WD-40 CompanyWDFC	2,755	24.7x	26.2x
Innospec Inc.IOSP	1,864	8.1x	7.6x
Industry Median		15.3x	16.1x
(*) EBITDA		145	140
= Enterprise Value		2,215	2,967
(-) Net Debt		749	749
Equity Value		1,466	2,218
(/) Outstanding shares		17	17
Fair Price		$84	$127

Selected Fair Value (avg of trailing + forward)

$105.43

-26.4%

Fair Value

$170.96

Market Price

$143.33

Upside / Downside

+19.3%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Quaker Chemical Corporation (KWR) has a fair value of $170.96 based on 8 comparable companies in the Chemicals - Specialty industry.

EV/Revenue Valuation — Chemicals - Specialty

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Quaker Chemical CorporationKWR	2,504	1.7x	1.8x
Methanex CorporationMEOH	4,402	2.1x	2.0x
The Chemours CompanyCC	3,435	1.3x	1.3x
Olin CorporationOLN	3,201	0.9x	1.0x
Hawkins, Inc.HWKN	3,096	3.3x	3.5x
WD-40 CompanyWDFC	2,755	4.5x	4.8x
Ingevity CorporationNGVT	2,702	3.3x	2.7x
Ashland Inc.ASH	2,533	2.1x	1.8x
Innospec Inc.IOSP	1,864	0.9x	0.9x
Industry Median		2.1x	1.9x
(*) Revenue		1,889	1,827
= Enterprise Value		3,982	3,490
(-) Net Debt		749	749
Equity Value		3,234	2,741
(/) Outstanding shares		17	17
Fair Price		$185	$157

Selected Fair Value (avg of trailing + forward)

$170.96

+19.3%

Earnings Power Value

Fair Value

$43.31

Market Price

$143.33

Upside / Downside

-69.8%

Verdict

Overvalued

Using the Earnings Power Value framework with a WACC of 7.4% and normalized earnings of $111.2M, the company has a fair value of $43.31 per share. The EPV range is $28.76 – $65.27 based on WACC sensitivity (5.9% – 8.9%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	111	111	111
(/) WACC	8.9%	7.4%	5.9%
Enterprise Value	1,251	1,506	1,889
(-) Net debt	749	749	749
Equity Value	503	757	1,141
(/) Outstanding shares	17	17	17
Fair Price	$28.76	$43.31	$65.27

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Quaker Chemical Corporation (KWR) Valuation Summary

Updated Apr 14, 2026 22:19

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$36.19 – $262.78	$80.05	-37.5%
Growth Exit 10Y	$33.98 – $225.48	$71.67	-44.1%
EBITDA Exit 5Y	$82.78 – $192.86	$133.29	+4.0%
EBITDA Exit 10Y	$69.51 – $183.19	$118.13	-7.8%
▸ Trading Multiples
P/E	—	N/A	—
EV/EBITDA	$37.24 – $163.19	$124.03	-3.2%
EV/Revenue	$93.90 – $317.77	$170.96	+33.5%
▸ PEG
PEG Fair Value	—	N/A	—
▸ Earnings Power Value
Earnings Power Value	$28.76 – $65.27	$43.31	-66.2%
▸ Dividend Discount
Dividend Discount	—	N/A	—

Valuation History

DCF Analysis

Fair Value

$80.05

Market Price

$143.33

Upside / Downside

-44.1%

Verdict

Overvalued

FCFF Present Value Calculation

WACC

7.38%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	142	148	151	154	157	161
(−) Net Interest	41	43	44	45	46	47
(+) D&A	31	33	34	34	38	39
EBITDA	215	224	230	232	241	247

(−) Tax	71	74	76	77	78	80
(−) CapEx	32	34	34	35	36	37
(−) ΔWC	25	18	14	10	10	10
Free Cash Flow (FCFF)	86	98	106	111	117	120

Terminal Value						2,451
WACC / Discount Rate	7.4%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	83	88	88	86	85	1,717

Enterprise Value	2,147
Projection Period	431	20.1%
Terminal Value	1,717	79.9%

(−) Current Net Debt	749

Equity Value	1,399
(/) Outstanding Shares	17

Fair Price	$80.05

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.4%	$119	$139	$166	$204	$263
6.4%	$85	$97	$112	$131	$157
7.4%	$63	$71	$80	$91	$105
8.4%	$48	$53	$59	$66	$75
9.4%	$36	$40	$44	$49	$55

Current price: $143.33. Green = undervalued, Red = overvalued.

Fair Value

$71.67

Market Price

$143.33

Upside / Downside

-50.0%

Verdict

Overvalued

FCFF Present Value Calculation

WACC

7.38%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	142	148	151	154	157	160	163	167	172	176	181
(−) Net Interest	41	43	44	45	46	46	47	49	50	51	53
(+) D&A	31	33	34	34	38	34	35	36	36	37	38
EBITDA	215	224	230	232	241	241	246	252	258	265	272

(−) Tax	71	74	76	77	78	80	82	84	86	88	90
(−) CapEx	32	34	34	35	36	36	37	38	39	40	41
(−) ΔWC	25	18	14	10	10	11	12	14	15	17	18
Free Cash Flow (FCFF)	86	98	106	111	117	113	115	116	118	119	122

Terminal Value											2,506
WACC / Discount Rate	7.4%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	83	88	88	86	85	76	72	68	64	61	1,229

Enterprise Value	2,001
Projection Period	772	38.6%
Terminal Value	1,229	61.4%

(−) Current Net Debt	749

Equity Value	1,252
(/) Outstanding Shares	17

Fair Price	$71.67

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.4%	$112	$128	$149	$179	$225
6.4%	$81	$89	$100	$115	$134
7.4%	$60	$65	$72	$80	$90
8.4%	$45	$49	$53	$58	$64
9.4%	$34	$36	$39	$42	$46

Current price: $143.33. Green = undervalued, Red = overvalued.

Fair Value

$133.34

Market Price

$143.33

Upside / Downside

-7.0%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Quaker Chemical Corporation's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 4.1% to 1.8% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 84, DPO 60, DIO 76). At a 7.4% WACC with mid-year discounting, the terminal value (86% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 15.3x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $133.29 per share, suggesting KWR is fairly valued by 7.0% at the current price of $143.33.

FCFF Present Value Calculation

WACC

7.38%

3% – 20%

EV/EBITDA Exit Multiple

15.33x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	142	148	151	154	157	161
(−) Net Interest	41	43	44	45	46	47
(+) D&A	31	33	34	34	38	39
EBITDA	215	224	230	232	241	247

(−) Tax	71	74	76	77	78	—
(−) CapEx	32	34	34	35	36	—
(−) ΔWC	25	18	14	10	10	—
Free Cash Flow (FCF)	86	98	106	111	117	—

Peers' EBITDA Multiple						15.3x
Terminal Value						3,781
WACC / Discount Rate	7.38%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	83	88	88	86	85	2,648

Enterprise Value	3,079
Projection Period	431	14.0%
Terminal Value	2,648	86.0%

(−) Current Net Debt	749
Equity Value	2,330
(÷) Outstanding Shares	17M
Fair Price	$133	-7.0%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	11.3x	13.3x	15.3x	17.3x	19.3x
5.4%	$106	$128	$149	$171	$193
6.4%	$100	$120	$141	$162	$183
7.4%	$94	$114	$133	$153	$173
8.4%	$88	$107	$126	$145	$164
9.4%	$83	$101	$119	$137	$155

Current price: $143.33. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$118.17

Market Price

$143.33

Upside / Downside

-17.6%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Quaker Chemical Corporation's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 4.1% to 2.8% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 84, DPO 60, DIO 76). At a 7.4% WACC with mid-year discounting, the terminal value (73% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 15.3x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $118.13 per share, suggesting KWR is overvalued by 17.6% at the current price of $143.33.

FCFF Present Value Calculation

WACC

7.38%

3% – 20%

EV/EBITDA Exit Multiple

15.33x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	142	148	151	154	157	160	163	167	172	176	181
(−) Net Interest	41	43	44	45	46	46	47	49	50	51	53
(+) D&A	31	33	34	34	38	34	35	36	36	37	38
EBITDA	215	224	230	232	241	241	246	252	258	265	272

(−) Tax	71	74	76	77	78	80	82	84	86	88	—
(−) CapEx	32	34	34	35	36	36	37	38	39	40	—
(−) ΔWC	25	18	14	10	10	11	12	14	15	17	—
Free Cash Flow (FCF)	86	98	106	111	117	113	115	116	118	119	—

Peers' EBITDA Multiple											15.3x
Terminal Value											4,162
WACC / Discount Rate	7.38%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	83	88	88	86	85	76	72	68	64	61	2,041

Enterprise Value	2,814
Projection Period	772	27.4%
Terminal Value	2,041	72.6%

(−) Current Net Debt	749
Equity Value	2,065
(÷) Outstanding Shares	17M
Fair Price	$118	-17.6%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	11.3x	13.3x	15.3x	17.3x	19.3x
5.4%	$110	$128	$146	$165	$183
6.4%	$98	$115	$132	$148	$165
7.4%	$88	$103	$118	$133	$149
8.4%	$78	$92	$106	$120	$134
9.4%	$70	$82	$95	$108	$120

Current price: $143.33. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$105.43

Market Price

$143.33

Upside / Downside

-26.4%

Verdict

Overvalued

EV/EBITDA Valuation — Chemicals - Specialty

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Quaker Chemical CorporationKWR	2,504	22.5x	23.3x
Methanex CorporationMEOH	4,402	8.6x	8.2x
The Chemours CompanyCC	3,435	22.1x	22.3x
Olin CorporationOLN	3,201	10.3x	10.9x
Hawkins, Inc.HWKN	3,096	20.3x	21.2x
WD-40 CompanyWDFC	2,755	24.7x	26.2x
Innospec Inc.IOSP	1,864	8.1x	7.6x
Industry Median		15.3x	16.1x
(*) EBITDA		145	140
= Enterprise Value		2,215	2,967
(-) Net Debt		749	749
Equity Value		1,466	2,218
(/) Outstanding shares		17	17
Fair Price		$84	$127

Selected Fair Value (avg of trailing + forward)

$105.43

-26.4%

Fair Value

$170.96

Market Price

$143.33

Upside / Downside

+19.3%

Verdict

Undervalued

EV/Revenue Valuation — Chemicals - Specialty

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Quaker Chemical CorporationKWR	2,504	1.7x	1.8x
Methanex CorporationMEOH	4,402	2.1x	2.0x
The Chemours CompanyCC	3,435	1.3x	1.3x
Olin CorporationOLN	3,201	0.9x	1.0x
Hawkins, Inc.HWKN	3,096	3.3x	3.5x
WD-40 CompanyWDFC	2,755	4.5x	4.8x
Ingevity CorporationNGVT	2,702	3.3x	2.7x
Ashland Inc.ASH	2,533	2.1x	1.8x
Innospec Inc.IOSP	1,864	0.9x	0.9x
Industry Median		2.1x	1.9x
(*) Revenue		1,889	1,827
= Enterprise Value		3,982	3,490
(-) Net Debt		749	749
Equity Value		3,234	2,741
(/) Outstanding shares		17	17
Fair Price		$185	$157

Selected Fair Value (avg of trailing + forward)

$170.96

+19.3%

Earnings Power Value

Fair Value

$43.31

Market Price

$143.33

Upside / Downside

-69.8%

Verdict

Overvalued

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	111	111	111
(/) WACC	8.9%	7.4%	5.9%
Enterprise Value	1,251	1,506	1,889
(-) Net debt	749	749	749
Equity Value	503	757	1,141
(/) Outstanding shares	17	17	17
Fair Price	$28.76	$43.31	$65.27