NYSE: CBT · Specialty Chemicals
Cabot (CBT) fair value: undervalued or overvalued?
As of 3 Oct 2026, Faircurve's model values Cabot (CBT) at $85.36 a share. The stock last closed at $76.95, which puts the model's fair value 10.9% above the price. On the model's bands that reads as Fairly valued.
Revalued . Price is the close of 2 Oct 2026. Cabot Corp.
Faircurve Insights · 3 Oct 2026
Cabot Corporation operates as a specialty chemicals and performance materials company. It operates through two segments, Reinforcement Materials and Performance Chemicals.
Faircurve's model found a fair value of $85.36 a share for Cabot Corp. on 3 Oct 2026, the midpoint of 2,000 simulations. The fair value moved -2.0% since the previous run on 26 Sep 2026, which gave $87.14. The calibrated range over 63 trading days is $71.22 to $103.48, built from the fair value and calibrated weekly against realised prices, which held the price 60% of the time at this horizon. The model's evidence grade is Medium.
The model scored the business at 69 out of 100 on overall quality against comparable companies. Its profitability scored 90, with ROIC at 11.8% against a peer median of 4.4%. Earnings quality scored 89, with FCF / net income at 1.48x against a peer median of 0.80x. The model compares Cabot Corp. with Avient Corporation, Ashland Inc., Balchem Corp, Sensient Technologies Corporation, Quaker Houghton, Hawkins, Inc., WD-40 Company, and H.B. Fuller Company. The median size of moves around the last 8 earnings reports was 8.4%.
Written from the figures on this page for the 3 Oct 2026 valuation and checked by rule before publishing: every number is one printed here, no forecast, no instruction. The price, the gap and the verdict are the page's own and change daily. Not a recommendation.
What price range does the model give CBT?
The calibrated range for CBT over 63 trading days is $71.22 to $103.48. There is no live options data for this stock, so the range is built from the fair value and calibrated weekly against realised prices (n = 4,809 past valuations, refreshed 3 Oct 2026). Ranges built this way held the price 60% of the time at this horizon.
The model's own simulated range, from the 20th to the 80th percentile of its runs, is $67.78 to $105.15. In 65% of the simulations the fair value came out above the price the model ran on.
How does CBT score on business quality?
Cabot's overall quality score is 69 out of 100. Each factor below is a score against comparable companies, not a percentile of the metric beside it.
| Factor | Score (0 to 100) | Headline measure | Peer median |
|---|---|---|---|
| ProfitabilityReturn on invested capital against the peer group, with a bonus for an improving trend. | 90 | 11.8%ROIC | 4.4% |
| Earnings qualityHow much of reported profit is cash: free cash flow to net income, and the accrual ratio (the share of earnings that is not cash). | 89 | 1.48xFCF / net income | 0.80x |
| Growth qualityTrailing revenue growth, forward growth from consensus, and the direction of analyst estimate revisions. | 26 | -7.0%Revenue growth, trailing | 0.6% |
| Capital disciplineReinvestment efficiency (capital spending per unit of revenue) and net buybacks. | 65 | 3.5%Net buybacks / market value | 0.1% |
| Balance sheetNet debt to EBITDA and interest coverage. | 79 | 1.48xNet debt / EBITDA | 3.62x |
| StabilityDownside volatility of the EBITDA margin over the last five years. | 47 | 2.3 ptsEBITDA margin downside volatility, 5y | 1.6 pts |
How does CBT compare with similar companies?
The companies in specialty chemicals closest to Cabot in market value, each on the same model and the same date.
| Company | Last close | Model fair value | Gap | Model verdict |
|---|---|---|---|---|
| AVNT Avient Corporation | $41.17 | $38.92 | -5.5% | Fairly valued |
| ASH Ashland Inc. | $69.52 | $65.19 | -6.2% | Fairly valued |
| BCPC Balchem Corp | $166.56 | $143.73 | -13.7% | Overvalued |
| SXT Sensient Technologies Corporation | $128.59 | $116.79 | -9.2% | Fairly valued |
| KWR Quaker Houghton | $160.73 | $138.60 | -13.8% | Fairly valued |
| HWKN Hawkins, Inc. | $131.41 | $121.50 | -7.5% | Fairly valued |
| WDFC WD-40 Company | $203.02 | $189.63 | -6.6% | Fairly valued |
| FUL H.B. Fuller Company | $50.20 | $57.71 | +15.0% | Fairly valued |
When does CBT report earnings, and how has the stock reacted?
Cabot's next earnings report is scheduled for 2 Nov 2026. Companies can move their dates.
Options prices on 2 Oct 2026 imply a move of about 11.5% in either direction through the nearest expiry, about 48 days out, a window that includes the report. That is the size the market is pricing, not a direction.
How CBT moved around its last 8 earnings reports
Each move runs from the last close before the report to the first close after it, so it covers companies that report before the open and after the close. The median size across these 8 reports, ignoring direction, was 8.4%.
| Report date | Two session move |
|---|---|
| 3 Aug 2026 | -6.9% |
| 5 May 2026 | +8.6% |
| 3 Feb 2026 | +8.1% |
| 3 Nov 2025 | -9.2% |
| 4 Aug 2025 | +11.2% |
| 5 May 2025 | -9.6% |
| 3 Feb 2025 | +2.0% |
| 4 Nov 2024 | -0.1% |
Cabot at a glance
Cabot Corporation operates as a specialty chemicals and performance materials company. It operates through two segments, Reinforcement Materials and Performance Chemicals.
- Market value
- $4.0B
- Sector
- Basic Materials
- Industry
- Specialty Chemicals
- Revenue expected, next twelve months
- $3.8B
- Consensus revenue growth, next fiscal year
- -0.8%
- Analysts with estimates
- 3
- Beta to the US market
- 0.49
- First valued by Faircurve
- 11 Jul 2026
How the fair value is worked out: the model prices Cabot on the value of the whole business, debt included, against the operating profit analysts expect next year (forward EV/EBITDA), runs 2,000 simulations across its inputs and takes the midpoint. The full method is documented here.
What changed in the latest valuation?
On 26 Sep 2026 the model's fair value for CBT was $87.14. As of 3 Oct 2026 it is $85.36, a change of -2.0%. The model revalues every stock it covers each week, and again after an earnings report.
Questions about Cabot's valuation
Is Cabot stock undervalued or overvalued?
On Faircurve's model, CBT reads as Fairly valued as of 3 Oct 2026. The model's fair value is $85.36 a share against a last close of $76.95, a gap of +10.9%.
What is CBT's fair value?
$85.36 a share as of 3 Oct 2026, the midpoint of 2,000 simulations. The model's own 20th to 80th percentile range is $67.78 to $105.15.
What price range does the model give CBT?
$71.22 to $103.48 over 63 trading days. Ranges built this way held the price 60% of the time across 4,809 past valuations, refreshed 3 Oct 2026.
When does Cabot report earnings next?
The next report is scheduled for 2 Nov 2026. Companies can move their dates.
How much has CBT moved on past earnings reports?
Across its last 8 reports the median two session move was 8.4%, ignoring direction. The largest was +11.2% around the report of 4 Aug 2025.
How confident is the model in this valuation?
The model's evidence grade for CBT is medium. The grade looks at how complete the inputs are, how many comparable companies there are and how closely they agree, and how wide the range of outcomes is. It is not a probability that the fair value is right, or that the price reaches it.