Huntsman (HUN) has drawn investor attention after recent share price weakness, with the stock closing at US$9.65 on 25 August 2026. The move comes alongside mixed return figures over the past year.

For context, Huntsman’s recent share price weakness comes after a steady loss of momentum, with the 30 day share price return down 15.6% and the 90 day share price return down 37.1%, while the 3 year total shareholder return has declined 60.0%. This points to a market that has been reassessing both its growth prospects and risk profile.

Compare Huntsman’s recent share price slide with other chemical producers by scanning list of solid balance sheet and fundamentals (50 results) that may be better positioned for the next rebound.

After such a sharp slide, Huntsman now trades at a level where the balance between risk and potential reward looks very different. Do the current fundamentals and valuation still justify taking equity risk here?

Most Popular Narrative: 18.3% Undervalued

The most followed Huntsman narrative places fair value at $11.82, compared with the last close of $9.65. That gap reflects a very specific earnings and margin recovery story over the next few years.

The company is actively transforming its portfolio away from lower-margin, commodity chemicals toward specialty chemicals (e.g., adhesives, elastomers, aerospace composites). The aim is 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 a full portfolio shift, margin rebuild, and future earnings multiple look like when combined into one valuation story? The narrative spells out how revenue growth, profitability improvement, and a richer earnings multiple are stitched together to arrive at that $11.82 fair value.

Result: Fair Value of $11.82 (UNDERVALUED)

However, Huntsman’s narrative can still be knocked off course if prolonged overcapacity in polyurethanes or weak construction demand keeps margins under pressure for longer than analysts expect.

Another View: Huntsman Through a Cash Flow Lens

The analyst narrative pegs Huntsman’s fair value at $11.82 based on future earnings and margins. A separate view comes from the SWS DCF model, which places future cash flow value closer to $9.12. This suggests the stock at $9.65 is slightly above that estimate. Which story do you think is closer to reality?

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 46 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

Given the mixed sentiment around Huntsman and the split between fair value models, it makes sense to move quickly and check the underlying data yourself. A good starting point is to weigh the 2 key rewards and 2 important warning signs.

Looking for more investment ideas beyond Huntsman?

If Huntsman has you rethinking your portfolio, now is the moment to broaden your watchlist and uncover other stocks that could better fit your goals.

• Target stronger value opportunities by reviewing companies flagged as 46 high quality undervalued stocks before prices move away from attractive levels.
• Strengthen your income focus and scan for reliable high yield opportunities through the 12 dividend fortresses while they still trade at appealing prices.
• Prioritise resilience and capital preservation by checking companies in the 76 resilient stocks with low risk scores so you are not caught off guard by future volatility.

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.