• Investors may be wondering if DuPont de Nemours at around US$46.56 is still offering value after a strong run, or if most of the easy gains are already behind it.
• The stock has pulled back over the last 7 days, declining 7.9%, and is also down 1.7% over the past month, yet it still shows a 13.9% gain year to date and a 65.4% return over the last year.
• These moves have come as investors reassess large materials stocks, with attention on how companies like DuPont de Nemours are positioned across specialty materials, safety solutions and other industrial applications. This backdrop helps explain why the stock has been responsive to shifts in sentiment around manufacturing activity, capital spending and the health of key end markets.
• On Simply Wall St's 6 point valuation checklist DuPont de Nemours scores a 3. The next step is a closer look at how different valuation methods frame that score, and how an even richer view of value comes together at the end of this article.

Approach 1: DuPont de Nemours Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model estimates what a stock could be worth by projecting the company’s future cash flows and then discounting them back to today’s value.

For DuPont de Nemours, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow stands at about $892.3 million. Analyst and extrapolated projections point to free cash flow of around $1,151 million in 2029, with a series of forecasts provided each year through 2035 in the $700 million to just over $1,400 million range before discounting.

Simply Wall St converts these projected cash flows into today’s dollars and arrives at an estimated intrinsic value of $64.78 per share. Compared with a recent share price of about $46.56, the DCF output implies the stock trades at roughly a 28.1% discount to this estimate, which indicates DuPont de Nemours is undervalued on this model.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests DuPont de Nemours is undervalued by 28.1%. Track this in your watchlist or portfolio, or discover 54 more high quality undervalued stocks.

Approach 2: DuPont de Nemours Price vs Earnings

For profitable companies, the P/E ratio is a useful way to think about what you are paying for each dollar of earnings, which is why it is the preferred multiple here. A higher or lower P/E often reflects what the market expects for future growth and how much risk investors are willing to accept, so there is no single "right" number in isolation.

DuPont de Nemours currently trades on a P/E of 144.59x. That is well above the Chemicals industry average of 26.34x and also ahead of the broader peer group average of 35.79x. Simply Wall St's "Fair Ratio" for DuPont de Nemours is 32.47x. This is a proprietary estimate of what the P/E could be, taking into account factors such as the company's earnings growth profile, profit margins, industry, market cap and specific risks.

Compared with simple peer or industry averages, the Fair Ratio offers a more tailored benchmark because it adjusts for those company specific characteristics rather than assuming all companies should trade on the same multiple. Setting the actual P/E of 144.59x against the Fair Ratio of 32.47x points to DuPont de Nemours trading above this customized range.

Result: OVERVALUED

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Upgrade Your Decision Making: Choose your DuPont de Nemours Narrative

Earlier it was mentioned that there is an even better way to understand valuation, so Narratives are introduced, which let you attach a clear story about DuPont de Nemours to a set of numbers such as your assumed fair value and expectations for future revenue, earnings and profit margins.

A Narrative links what you believe about the company, for example how PFAS liabilities, water technology or AI related demand might shape its future, to a financial forecast and then to a fair value that you can compare directly with the current share price to judge whether you see DuPont de Nemours as priced attractively or not.

On Simply Wall St, Narratives sit inside the Community page and are used by millions of investors as an accessible tool, updating automatically when fresh information arrives, such as changes to DuPont de Nemours earnings guidance, new product launches or analyst price targets.

For DuPont de Nemours, one investor might lean toward a more optimistic Narrative with a fair value around US$63.81, while another might prefer a more cautious Narrative closer to US$50.00. By setting up your own view alongside these, you can see exactly how different assumptions lead to different fair values and decisions.

Do you think there's more to the story for DuPont de Nemours? Head over to our Community to see what others are saying!

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.