LyondellBasell Industries (LYB) After Earnings Looks Fairly Valued At $68.64

LyondellBasell Industries (NYSE:LYB) just posted its third quarter 2026 earnings, reporting revenue of US$8.5b and net income of US$756m, compared with a loss in the same period last year.

LyondellBasell Industries shares traded at US$68.64 after the release, with a 1-day share price return of 5.0% adding to a 30-day gain of 19.44% and a year to date share price return of 54.63%. However, the 3-year total shareholder return is still down 9.92%, indicating strong recent momentum following weaker longer term performance.

Spot fresh momentum stories beyond LyondellBasell Industries by scanning a hand picked set of 29 high quality undervalued stocks that combine strong fundamentals with room for potential rerating.

LyondellBasell Industries has just sprinted higher on the back of this latest quarter, which leaves investors with a simple fork in the road: Is today’s price already fair, or is patience still your friend?

Most Popular Narrative: 0% Undervalued

LyondellBasell Industries closed at $68.64, almost exactly in line with the widely followed fair value estimate of about $68.59. This puts the focus squarely on whether the current business plan can justify that pricing over time.

The current valuation implies the market is still discounting the company’s progress on portfolio rationalisation, structural cost savings, and repositioning toward advantaged and circular assets. This aligns with a bullish view that LyondellBasell Industries is undervalued.

See why 88 investors see LyondellBasell Industries as 0% overvalued.

Result: Fair Value of $68.59 (ABOUT RIGHT)

Still, if disrupted Middle East polyethylene capacity eases sooner than analysts assume, or operational issues reappear at key plants, the LyondellBasell Industries thesis could be challenged.

Find out about the key risks to this LyondellBasell Industries narrative.

Another View: LyondellBasell Industries Through The Cash Flow Lens

While the fair value of US$68.59 suggests LyondellBasell Industries is roughly in line with analyst targets, the SWS DCF model points in a very different direction. Based on projected future cash flows, it flags the stock as trading well below an estimated value of US$152.33. Which signal do you weigh more heavily when the story splits like this?

Look into how the SWS DCF model arrives at its fair value.

Next Steps

Mixed signals on LyondellBasell Industries so far. If you want to move quickly and ground your own view in the numbers, start with the balance of 3 key rewards and 2 important warning signs

Looking for more investment ideas beyond LyondellBasell Industries?

If you stop with LyondellBasell Industries, you risk missing other setups that fit your style just as well, or even better, on the numbers.

• Target resilient income by focusing on companies that aim to combine durability with meaningful payouts through our 5 dividend fortresses.
• Hunt for mispriced quality that meets your standards on cash flow strength and balance sheet support using the 29 high quality undervalued stocks.
• Spot future leaders early by filtering for smaller businesses with underfollowed potential through the 18 high quality undiscovered gems.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com