As of April 4, 2026, Quaker Chemical Corp's estimated intrinsic value ranges from $113.04 to $259.10 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $259.10 | +114.9% |
| Discounted Cash Flow (5Y) | $205.80 | +70.7% |
| Dividend Discount Model (Multi-Stage) | $113.04 | -6.2% |
| Earnings Power Value | $120.39 | -0.1% |
Is Quaker Chemical Corp (KWR) undervalued or overvalued?
With the current market price at $120.57, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Quaker Chemical Corp's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.93 | 1.05 |
| Cost of equity | 8.1% | 10.8% |
| Cost of debt | 5.1% | 5.2% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.4 | 0.4 |
| After-tax WACC | 6.9% | 8.8% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $206 | $4,259M | 82.0% |
| 10-Year Growth | $259 | $5,184M | 67.1% |
| 5-Year EBITDA | $143 | $3,177M | 75.8% |
| 10-Year EBITDA | $194 | $4,047M | 57.9% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $214M |
| Discount Rate (WACC) | 8.8% - 6.9% |
| Enterprise Value | $2,441M - $3,116M |
| Net Debt | $691M |
| Equity Value | $1,750M - $2,425M |
| Outstanding Shares | 17M |
| Fair Value | $101 - $140 |
| Selected Fair Value | $120.39 |
| Metric | Value |
|---|---|
| Market Capitalization | $2091M |
| Enterprise Value | $2781M |
| Trailing P/E | 0.00 |
| Forward P/E | 40.74 |
| Trailing EV/EBITDA | 9.65 |
| Current Dividend Yield | 158.98% |
| Dividend Growth Rate (5Y) | 4.72% |
| Debt-to-Equity Ratio | 0.40 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $77.73 |
| Discounted Cash Flow (5Y) | 29% | $51.45 |
| Dividend Discount Model (Multi-Stage) | 24% | $22.61 |
| Earnings Power Value | 12% | $12.04 |
| Weighted Average | 100% | $192.74 |
Based on our comprehensive valuation analysis, Quaker Chemical Corp's intrinsic value is $192.74, which is approximately 59.9% above the current market price of $120.57.
Key investment considerations:
Given these factors, we believe Quaker Chemical Corp is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.