Innospec Inc (IOSP) fair value: what the stock is really worth
As of Oct 30, 2026: fair value (intrinsic value) of Innospec Inc stock $71.72, price $99.89, that is 28.2% below the price, quality 63 out of 100. Rating: overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 1, 2026.
How to read this chart
60‑month range $65.12 – $126.25 · fair‑value band $50.20 – $93.23 · the $99.89 price screens above the $71.72 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 1, 2026.
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Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company operates through three segments: Performance Chemicals, Fuel Specialties, and Oilfield Services.
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It offers specialty chemical products used as additives in diesel, jet, marine, fuel oil, and other fuels used in the operation of commercial trucking, marine and aviation engines, power station generators, heating oil, and other industrial machinery applications.
It also provides technology-based solutions for customers' processes or products in personal care, home care, agrochemical, construction, mining, and other industrial markets.
In addition, the company develops and markets chemical solutions for drilling, completion, production, drag reducing agents, and oil and gas applications.
It serves large multinational companies, manufacturers of personal and home care products and global mining, agriculture and building products, and other industrial companies; national and multinational oil companies, fuel marketers and retailers, fuel terminals, marine lines, coating and plastics producers, and other heavy industrial end-users; and multinational public, independent exploration and production, and oilfield services companies.
The company was formerly known as Octel Corp. and changed its name to Innospec Inc. in January 2006. Innospec Inc. was founded in 1938 and is headquartered in Englewood, Colorado.
Stock analysis
Innospec Inc (IOSP) currently trades at $99.89, while our model-based Fair Value estimate is $71.72, 28.2% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $90.89 per share, and 1 of the 26 models we run sit above the $99.89 price.
Bear case: the Asset-Based group reads lowest at $20.23, and 25 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $50.20 (bear) to $93.23 (bull), the price of $99.89 sits above 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 63/100 (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.
Innospec Inc reported revenue of $1.8B in FY2025 versus $1.5B in FY2021, a compound +4.6%/yr. Reported net income was $117M in FY2025, compounding +5.8%/yr from FY2021.
Key figures
Market cap $2.5B Mid · P/E ratio 20.4 · P/S ratio 1.34 · EPS (TTM) $4.90 · Dividend yield 1.8% · Net margin 6.6% · Return on equity 9.1% · Return on assets (EBIT) 9.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 46 out of 100 (low confidence).
What moves the price
The share trades about 1% below its 52-week high and 53% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Basic Materials peers we cover trades at −41% fair-value upside, at −28%, IOSP screens cheaper than that median.
Fair Value models
Bear$50.20Fair Value $71.72Bull$93.23
Price $99.89 · Downside -28.2%
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 10 months old). Earnings retained since then ($2.62 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.
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
−3.7%
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.
−3.3%
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.
+8.3%
Start year 2020 (pandemic). Over 10 years: +5.8% a year
Revenue growth 27 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.
+5.1%
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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. Basis: adjusted.
+7.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year+6.1%
Dividend (yield on the price)1.8%
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.4.5% vs 3.3%, steady
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.3% → 9%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more 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).
+13.5%
Yearly growth needed for the next five years to justify today's price.
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.
+5.5%
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 +10.8% a year for the price and +3.1% for the forecasts.
AI conclusion: Moderate overall moat with low debt and average returns forms the main strength, while thin evidence prevents confirmation of any durable competitive edge or pricing power.
Main risk: Continued reliance on Middle East activity to drive Oilfield Services recovery risks leaving the new capacity underutilised and mainly offsetting weaker performance in other segments.
Innospec has expanded drag reducing agent capacity in its Oilfield Services segment to capture rising demand. Recovery in that business still depends on Middle East activity picking up as planned while other segments face softer conditions. Will the added production translate into sustained segment growth or mainly cushion slower performance elsewhere?
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 · 725 stocks
Beats the industry median on 9/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score63 · Top 25%
Fair Value upside−28.2% · Below median
Profitability
Return on equity (12 months)9.1% · Above median
Return on assets6.4% · Above median
Net margin (12 months)6.6% · Above median
Operating margin (12 months)8.1% · Below median
Growth and dividend
Revenue growth (quarter YoY)11.8% · Below median
Dividend yield (12 months)1.8% · Above median
Balance sheet
Debt / equity0.04× · Below median
Valuation Multiplesvs Specialty Chemicals median · lower = cheaper
P/E (12 months)20.4× · Cheaper than median
P/B1.86× · Pricier than median
P/S (12 months)1.34× · Cheaper than median
Price / free cash flow28.1× · Pricier than median
EV/EBITDA11.7× · Pricier than median
PEG0.66× · Cheapest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)59· sector 67
PAST (return on equity)37· sector 27
HEALTH (low debt)98· sector 95
DIVIDEND (yield)36· sector 31
VALUE 0: the price sits above our fair-value range.
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). "Innospec Inc Fair Value". https://www.fairvalue-calculator.com/stock/IOSP
Frequently asked questions
Is Innospec Inc (IOSP) overvalued or undervalued?
As of Nov 1, 2026, our model estimates a fair value of $71.72 versus a price of $99.89, about 28% lower (overvalued).
What is the fair value of IOSP?
Our model-based fair value for Innospec Inc is $71.72 (as of Nov 1, 2026), built from audited fundamentals. The current price: $99.89.
What is the quality score of IOSP?
Innospec Inc has a Quality Score of 63/100. 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 Innospec Inc (IOSP)?
Our model-based price target is the fair value of $71.72 (as of Nov 1, 2026) from 26 valuation models. Cautious scenario $50.20, optimistic scenario $93.23. It is a calculation from audited fundamentals, not an analyst target.
What is the Innospec Inc stock forecast for 2026?
Our models put fair value at $71.72, about 28% lower versus a price of $99.89 (overvalued). Cautious scenario $50.20, optimistic scenario $93.23. The calculation is refreshed regularly with new filings.
What is the revenue of Innospec Inc (IOSP)?
Innospec Inc reported trailing-twelve-month revenue of about $1.8B (latest available figure, as of Nov 1, 2026).
Does Innospec Inc pay a dividend?
Innospec Inc currently shows a dividend yield of 1.79% relative to its recent price (as of Nov 1, 2026).
What growth is priced into Innospec Inc (IOSP)?
For today's price to be fair in a discounted-cash-flow model, Innospec Inc would have to grow free cash flow by +13.5 % per year for five years (discount rate 9.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +8.3 % per year. As of Nov 1, 2026.
What discount rate (WACC) does the fair value of IOSP use?
Our models discount Innospec Inc at 9.5 %: a base by market capitalisation (mid), damped by beta 0.89, 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 Innospec Inc that is +13.5 % per year a year over ten years, using the same discount rate (9.5 %) and the same formula as our fair value.
How much growth has Innospec Inc (IOSP) delivered so far?
Over the past 5 years revenue at Innospec Inc grew +8.3 % a year. The price currently implies +13.5 % per year free-cash-flow growth a 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 Innospec Inc (IOSP) growing?
The median revenue growth in the sector is +9.6 % a year. That is the yardstick for the growth priced into Innospec Inc (+13.5 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Innospec Inc (IOSP)?
The free-cash-flow yield on the price is 3.57 %: that much free cash flow Innospec Inc produces per unit of market value. When it exceeds the discount rate of our models (9.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Innospec Inc (IOSP)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Innospec Inc it is $71.72 per share (as of Nov 1, 2026), against a price of $99.89. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Innospec Inc stock overvalued or undervalued in 2026?
As of Nov 1, 2026, IOSP trades above its calculated fair value: price $99.89, fair value $71.72, a gap of about −28% (overvalued). 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 IOSP?
No. The price is what the market pays today ($99.89); the fair value is what the company's own numbers justify ($71.72). For Innospec Inc the two are $28.17 per share apart. That gap is exactly why we show both numbers side by side.
How much is Innospec Inc worth?
The market values Innospec Inc at about $2.5B (market capitalisation, as of Nov 1, 2026). Per share that is $99.89; our models calculate a fair value of $71.72 per share.
What do the bullish and bearish scenarios say about IOSP?
Our models span a range for Innospec Inc: cautious scenario $50.20, base $71.72, optimistic $93.23 per share (as of Nov 1, 2026, price $99.89). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of IOSP?
Innospec Inc trades at a price-to-earnings ratio of 20.4 (as of Nov 1, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $71.72 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 19.0 (reported for FY2025: 21.3). Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 6 of the years ex one-offs: 23.1. Other multiples: PEG 0.7, P/B 1.9, P/S 1.3, EV/EBITDA 11.7.
What is the PEG ratio of IOSP?
The PEG ratio of Innospec Inc is 0.66 (P/E divided by earnings growth, as of Nov 1, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Innospec Inc (IOSP)?
Balance-sheet figures for Innospec Inc (as of Nov 1, 2026): return on equity 9.1%, debt of 0.04 per unit of equity. They feed the Quality Score of 63/100, which measures business quality independently of the share price.
How far is IOSP from its 52-week high?
Innospec Inc trades at $99.89, about 1% below its 52-week high of $101.41 and 53% above the low of $65.12 (as of Oct 30, 2026). Distance from the high says nothing about value: that is what the fair value of $71.72 is for.
Which stocks are comparable to Innospec Inc?
From the same area (Basic Materials) we also value Linde plc, Ecolab Inc, The Sherwin-Williams Company, Givaudan SA, 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 Innospec Inc stock attractive at the current price?
The data as of Nov 1, 2026: price $99.89, calculated fair value $71.72 (−28%), Quality Score 63/100, from 26 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 IOSP calculated?
We run Innospec Inc through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $71.72, 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 14.9 % above its aggregate fair value. Innospec Inc itself currently trades above fair value. 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 Innospec Inc (IOSP)?
The closing price on Oct 30, 2026 was $99.89. Our model-based fair value is $71.72, about 28% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Innospec Inc right now?
The price sits above even our optimistic bull case ($93.23). The favourable scenario is already priced in. Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($50.20 to $93.23) leaves room in how you read the outcome.
Where does the earnings growth of Innospec Inc (IOSP) come from?
Earnings per share at Innospec Inc grew +0.1 % a year from 2014 to 2025. Broken into its drivers: revenue per share +7.5 %, EBIT margin −4.2 %, tax rate +0.6 %, residual (interest, one-offs) −3.5 %. 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 Innospec Inc
How large is the market capitalisation of Innospec Inc (IOSP)?
The market capitalisation of Innospec Inc is $2.5B. 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 Innospec Inc (IOSP)?
The price-to-sales ratio of Innospec Inc is 1.34 (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 Innospec Inc (IOSP)?
Earnings per share at Innospec Inc are $4.90 (price ÷ EPS = P/E 20.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Innospec Inc (IOSP)?
The dividend yield of Innospec Inc is 1.8% (payout 32.5%, on adjusted earnings, reported 36.5%). 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 Innospec Inc (IOSP)?
The net margin of Innospec Inc is 6.6% (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 Innospec Inc (IOSP)?
The return on equity (ROE) of Innospec Inc is 9.1% (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 Innospec Inc (IOSP)?
On an EBIT basis the return on assets of Innospec Inc is 9.7% (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 Innospec Inc (IOSP)?
The operating margin of Innospec Inc is 8.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Innospec Inc (IOSP)?
Revenue at Innospec Inc is growing +11.8% versus a year earlier (3y avg −3.3%). 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 Innospec Inc (IOSP)?
Earnings per share at Innospec Inc are growing +33.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Innospec Inc (IOSP) hold?
Innospec Inc holds more cash than debt, $240M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Broad data
Nov 1, 2026