Huntsman (HUN) has drawn investor attention after reporting second quarter 2026 results along with a fresh dividend declaration. The update combines higher reported sales with a much smaller net loss and a continued cash payout.

Despite the narrower loss and the continued dividend, Huntsman’s recent share price momentum has been weak, with a 7 day share price return down 16% and a 90 day share price return down 32%. Over a longer horizon, total shareholder return is up 11.5% over the past year but remains down more than 50% over three and five years. This suggests sentiment is still cautious even after the latest results.

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The recent drop has pushed Huntsman’s US$10.14 share price well below some analyst targets, while one intrinsic estimate now sits above it. So where does a reasonable view of fair value fall within that range?

Most Popular Narrative: 28.8% Undervalued

At a last close of $10.14, the most widely followed Huntsman narrative points to a fair value of $14.25, which implies a sizeable valuation gap that hinges on a specific future profit and revenue path.

The company is actively transforming its portfolio away from lower margin, commodity chemicals toward specialty chemicals (e.g., adhesives, elastomers, aerospace composites), aiming to further improve EBITDA margins and overall profitability in future cycles. Cost optimization, working capital discipline, and strategic asset closures (e.g., the maleic anhydride facility in Europe) are expected to enhance free cash flow generation and support improved net margins and earnings resilience during the next macro upturn.

Want to see what kind of revenue climb, margin rebuild, and future earnings multiple have to come together for Huntsman to reach that fair value? The narrative spells out the growth rate, the profit margin shift and the valuation multiple that must all line up for $14.25 to make sense.

Result: Fair Value of $14.25 (UNDERVALUED)

However, Huntsman’s story can change quickly if polyurethane overcapacity or weaker construction markets keep pricing under pressure and delay any improvement in profitability.

Another View on Huntsman’s Valuation

There is also a discounted cash flow view on Huntsman that points in the opposite direction. At a share price of $10.14, Huntsman is trading above an SWS DCF model estimate of future cash flow value of $9.24, which frames the stock as overvalued on that basis. This raises the question of which valuation anchor to emphasize.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Huntsman for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 50 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If this mix of risks and potential rewards around Huntsman leaves you unsure, act promptly, review the data, and form your own view with 2 key rewards and 2 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.