Cabot Corporation (CBT) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Cabot Corporation stock $77.66, price $71.05, upside +9.3%, quality 65 out of 100. Rating: fairly valued. Calculated from audited financials with 25 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 4, 2026.
How to read this chart
60‑month range $43.28 – $111.90 · fair‑value band $52.08 – $102.22 · the $71.05 price screens below the $77.66 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 4, 2026.
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Cabot Corporation operates as a specialty chemicals and performance materials company. It operates through two segments, Reinforcement Materials and Performance Chemicals.
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The company offers reinforcing carbons that are used in tires as a rubber reinforcing agent and performance additive, as well as in industrial products, such as hoses, belts, extruded profiles, and molded goods; and engineered elastomer composites solutions.
It also provides specialty carbons for use in inks, coatings, plastics, adhesives, toners, batteries, and displays; conductive additives and fumed alumina used in lead acid and lithium-ion batteries for electric vehicles; fumed silica used in adhesives, sealants, cosmetics, batteries, inks, toners, silicone elastomers, coatings, polishing slurries, and pharmaceuticals; and fumed alumina for use in various products, including inkjet media, lighting, coatings, cosmetics, and polishing slurries.
In addition, it offers aerogel, a hydrophobic, silica-based particle to use in various thermal insulation and specialty chemical applications; masterbatch and conductive compound products that are used in automotive, industrial, packaging, infrastructure, agriculture, consumer products, and electronics industries; and inkjet colorants for inkjet printing applications, as well as carbon nanotubes and fumed metal oxides.
The company sells its products through distributors and sales representatives in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Cabot Corporation was founded in 1882 and is headquartered in Boston, Massachusetts.
Stock analysis
Cabot Corporation (CBT) currently trades at $71.05, while our model-based Fair Value estimate is $77.66, so the stock looks roughly fairly valued today (gap 8.5%).
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Valuation
Bull case: the Growth DCF group reads highest at a median of $108.73 per share, and 20 of the 25 models we run sit above the $71.05 price.
Bear case: the Asset-Based group reads lowest at $18.77, and 5 of the 25 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $52.08 (bear) to $102.22 (bull), the price of $71.05 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 65/100 (solid quality), in the Basic Materials sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Cabot Corporation reported revenue of $3.7B in FY2025 versus $3.4B in FY2021, a compound +2.2%/yr. Reported net income was $331M in FY2025, compounding +7.3%/yr from FY2021.
Key figures
Market cap $3.7B Mid · P/E ratio 21.0 · P/S ratio 1.02 · EPS (TTM) $3.39 · Dividend yield 2.6% · Net margin 5.2% · Return on equity 13.4% · Return on assets (EBIT) 14.4% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 53 out of 100 (low confidence).
What moves the price
The share trades about 24% below its 52-week high and 24% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Basic Materials peers we cover trades at −43% fair-value upside, at 9%, CBT screens cheaper than that median.
Fair Value models
Bear$52.08Fair Value $77.66Bull$102.22
Price $71.05 · Upside +9.3%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then ($1.57 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
FCF DCF$76.77$113.77$164.8980
Growth DCF$79.23$113.61$159.1279
Owner Earnings$50.64$76.70$112.7076
All 25 models by family
DCF Models
FCF DCF$76.77$113.77$164.8980
Owner Earnings$50.64$76.70$112.7076
5Y Revenue Exit$65.70$102.71$147.8872
5Y EBITDA Exit$83.08$133.50$189.4875
5Y P/E Exit$66.15$103.52$140.3571
10Y Revenue Exit$67.03$100.50$141.1867
10Y EBITDA Exit$79.84$120.99$170.9868
10Y P/E Exit$69.42$101.04$135.7964
Earnings-Based
Graham-Dodd$43.60$99.94$128.1765
PEG = 1.0$16.70$23.85$31.0157
EPV$64.65$76.95$87.6274
Dividend Discount
Gordon GGM$16.62$27.25$39.2868
DDM Multi-Stage$16.62$24.17$32.3667
Multiples
P/E Multiple$81.75$109.01$136.2663
P/S Multiple$80.92$107.89$134.8658
P/B Multiple$63.03$84.03$105.0455
EV/EBIT$124.92$167.02$209.1366
EV/EBITDA$111.20$148.74$186.2767
EV/Revenue$74.13$106.50$138.8653
Asset-Based
NCAV (Graham)$14.01$18.77$28.0154
Growth DCF
Growth DCF$79.23$113.61$159.1279
Rev-Margin DCF$65.70$103.85$144.6972
Economic Profit
Residual Income$38.59$47.21$68.6775
ROIC Compounder$67.59$84.81$103.2672
Growth Earnings
Growth-Adj P/E$62.40$89.14$115.8867
The fair value above starts from this blend and is adjusted for a cyclical peak year.
In the last 6 months, one officer or director sold shares worth $19.6M and none bought.
SaleSean D KeohanePresident and CEO, Director3× since Aug 7, 2026: 229,597 shares, avg. $85.57$19.6MAug 28, 2026
Plus 3 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
−7.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−4.9%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.3%
Start year 2020 (pandemic). Over 10 years: +2.6% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.5%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+14.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year+11.6%
Dividend (yield on the price)2.6%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.11.6% vs 8.4%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.1% → 17%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−1.2%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+2.5%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −3.5% a year for the price and +0.1% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (98 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Cabot's main strength lies in its expansion of battery conductive additives for energy storage and electrification demand, while the primary weakness is thin evidence across categories and a mature core reinforcement materials segment.
Main risk: The mature reinforcement materials segment continues to dominate and could constrain overall growth if the battery platform fails to accelerate sufficiently.
Cabot is expanding domestic production of advanced conductive additives for batteries at its Louisiana and Texas sites, backed by a modified DOE grant and its own investment. This targets rising demand tied to energy storage, AI data centers and electrification while the core reinforcement materials segment operates in a more mature market. Our models see the stock as undervalued. Will the battery platform accelerate overall growth enough to matter, or will the traditional businesses continue to set the pace?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Specialty Chemicals · 728 stocks
Beats the industry median on 11/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score65 · Top 25%
Fair Value upside+9.3% · Above median
Profitability
Return on equity (12 months)13.4% · Top 25%
Return on assets8.7% · Top 25%
Net margin (12 months)5.2% · Below median
Operating margin (12 months)14.3% · Above median
Growth and dividend
Revenue growth (quarter YoY)6.4% · Below median
Dividend yield (12 months)2.6% · Above median
Balance sheet
Debt / equity0.52× · Highest 25%
Valuation Multiplesvs Specialty Chemicals median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Cabot Corporation Fair Value". https://www.fairvalue-calculator.com/stock/CBT
Frequently asked questions
Is Cabot Corporation (CBT) overvalued or undervalued?
As of Nov 4, 2026, our model estimates a fair value of $77.66 versus a price of $71.05, about +9% upside (fairly valued).
What is the fair value of CBT?
Our model-based fair value for Cabot Corporation is $77.66 (as of Nov 4, 2026), built from audited fundamentals. The current price: $71.05.
What is the quality score of CBT?
Cabot Corporation has a Quality Score of 65/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Cabot Corporation (CBT)?
Our model-based price target is the fair value of $77.66 (as of Nov 4, 2026) from 25 valuation models. Cautious scenario $52.08, optimistic scenario $102.22. It is a calculation from audited fundamentals, not an analyst target.
What is the Cabot Corporation stock forecast for 2026?
Our models put fair value at $77.66, about +9% upside versus a price of $71.05 (fairly valued). Cautious scenario $52.08, optimistic scenario $102.22. The calculation is refreshed regularly with new filings.
What is the revenue of Cabot Corporation (CBT)?
Cabot Corporation reported trailing-twelve-month revenue of about $3.6B (latest available figure, as of Nov 4, 2026).
Does Cabot Corporation pay a dividend?
Cabot Corporation currently shows a dividend yield of 2.57% relative to its recent price (as of Nov 4, 2026).
How much is the dividend of Cabot Corporation (CBT) and when is the ex-dividend date?
Cabot Corporation pays a dividend of $1.82 per share a year, a dividend yield of 2.6%. The last ex-dividend date was Aug 28, 2026. A dividend has been paid every year since at least 1984. The payout ratio is 53.8% of earnings. Free cash flow covers the dividend 4.15 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Cabot Corporation (CBT)?
For today's price to be fair in a discounted-cash-flow model, Cabot Corporation would have to grow free cash flow by -1.2 % per year for five years (discount rate 9.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +7.3 % per year. As of Nov 4, 2026.
What discount rate (WACC) does the fair value of CBT use?
Our models discount Cabot Corporation at 9.3 %: a base by market capitalisation (mid), damped by beta 0.82, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Cabot Corporation that is -1.2 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (9.3 %) and the same formula as our fair value.
How much growth has Cabot Corporation (CBT) delivered so far?
Over the past 5 years revenue at Cabot Corporation grew +7.3 % a year. The price currently implies free-cash-flow growth of -1.2 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Cabot Corporation (CBT) growing?
The median revenue growth in the sector is +9.8 % a year. That is the yardstick for the growth priced into Cabot Corporation (-1.2 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Cabot Corporation (CBT)?
The free-cash-flow yield on the price is 10.58 %: that much free cash flow Cabot Corporation produces per unit of market value. When it exceeds the discount rate of our models (9.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Cabot Corporation (CBT)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Cabot Corporation it is $77.66 per share (as of Nov 4, 2026), against a price of $71.05. It is the blended result of 25 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Cabot Corporation stock overvalued or undervalued in 2026?
As of Nov 4, 2026, CBT trades below its calculated fair value: price $71.05, fair value $77.66, a gap of about +9% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of CBT?
No. The price is what the market pays today ($71.05); the fair value is what the company's own numbers justify ($77.66). For Cabot Corporation the two are $6.61 per share apart. That gap is exactly why we show both numbers side by side.
How much is Cabot Corporation worth?
The market values Cabot Corporation at about $3.7B (market capitalisation, as of Nov 4, 2026). Per share that is $71.05; our models calculate a fair value of $77.66 per share.
What do the bullish and bearish scenarios say about CBT?
Our models span a range for Cabot Corporation: cautious scenario $52.08, base $77.66, optimistic $102.22 per share (as of Nov 4, 2026, price $71.05). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of CBT?
Cabot Corporation trades at a price-to-earnings ratio of 21.0 (as of Nov 4, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $77.66 is built from several models across several years. Median P/E at fiscal year-end, 8 fiscal years (2016 to 2025), reported earnings: 15.5. Other multiples: PEG 1.0, P/B 2.3, P/S 1.0, EV/EBITDA 5.8.
What is the PEG ratio of CBT?
The PEG ratio of Cabot Corporation is 1.00 (P/E divided by earnings growth, as of Nov 4, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Cabot Corporation (CBT)?
Balance-sheet figures for Cabot Corporation (as of Nov 4, 2026): return on equity 13.4%, debt of 0.52 per unit of equity. They feed the Quality Score of 65/100, which measures business quality independently of the share price.
How far is CBT from its 52-week high?
Cabot Corporation trades at $71.05, about 24% below its 52-week high of $92.88 and 24% above the low of $57.32 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $77.66 is for.
Which stocks are comparable to Cabot Corporation?
From the same area (Basic Materials) we also value Linde plc, Ecolab Inc, The Sherwin-Williams Company, Nan Ya Plastics Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Cabot Corporation stock attractive at the current price?
The data as of Nov 4, 2026: price $71.05, calculated fair value $77.66 (+9%), Quality Score 65/100, from 25 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of CBT calculated?
We run Cabot Corporation through 25 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $77.66 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Cabot Corporation currently trades 9% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Cabot Corporation (CBT)?
The closing price on Nov 6, 2026 was $71.05. Our model-based fair value is $77.66, about +9% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Cabot Corporation right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range ($52.08 to $102.22) leaves room in how you read the outcome.
Where does the earnings growth of Cabot Corporation (CBT) come from?
Earnings per share at Cabot Corporation grew +10.9 % a year from 2014 to 2025. Broken into its drivers: revenue per share +4.4 %, EBIT margin +5.1 %, tax rate +1.0 %, residual (interest, one-offs) +0.0 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Cabot Corporation
How large is the market capitalisation of Cabot Corporation (CBT)?
The market capitalisation of Cabot Corporation is $3.7B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Cabot Corporation (CBT)?
The price-to-sales ratio of Cabot Corporation is 1.02 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Cabot Corporation (CBT)?
Earnings per share at Cabot Corporation are $3.39 (price ÷ EPS = P/E 21.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Cabot Corporation (CBT)?
The dividend yield of Cabot Corporation is 2.6% (payout 53.8%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Cabot Corporation (CBT)?
The net margin of Cabot Corporation is 5.2% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Cabot Corporation (CBT)?
The return on equity (ROE) of Cabot Corporation is 13.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Cabot Corporation (CBT)?
On an EBIT basis the return on assets of Cabot Corporation is 14.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Cabot Corporation (CBT)?
The operating margin of Cabot Corporation is 14.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Cabot Corporation (CBT)?
Revenue at Cabot Corporation is growing +6.4% versus a year earlier (3y avg −4.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Cabot Corporation (CBT)?
Earnings per share at Cabot Corporation are growing −93.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Cabot Corporation (CBT) carry?
The net debt of Cabot Corporation is $72.0M (fiscal year 2026, ≈ 0.2 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Nov 4, 2026