Stepan Company (SCL) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Stepan Company stock $32.66, price $66.94, that is 51.2% below the price, quality 56 out of 100. Rating: strongly overvalued. 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 8, 2026.
How to read this chart
60‑month range $41.04 – $116.00 · fair‑value band $16.52 – $48.98 · the $66.94 price screens above the $32.66 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 8, 2026.
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Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products in the United States, France, Poland, the United Kingdom, Brazil, Mexico, and internationally.
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It operates through three segments: Surfactants, Polymers, and Specialty Products.
The Surfactants segment offers surfactants that are used in consumer and industrial cleaning and disinfection products, including detergents for washing clothes, dishes, carpets, and floors and walls, as well as shampoos and body washes; and other applications, such as fabric softeners, germicidal quaternary compounds, disinfectants, lubricating ingredients; emulsifiers for spreading agricultural products; and industrial applications comprising latex systems, plastics, and composites.
The Polymers segment provides polyurethane polyols that are used in the manufacture of rigid foam for thermal insulation in the construction industry, as well as a base raw material for coatings, adhesives, sealants, and elastomers (CASE); polyester resins used in coating applications; specialty polyols, such as CASE and powdered polyester resins; and phthalic anhydride that is used in unsaturated polyester resins, alkyd resins, and plasticizers for applications in construction materials, as well as components of automotive, boating, and other consumer products.
The Specialty Products segment offers flavors, emulsifiers, and solubilizers for use in food, flavoring, nutritional supplement, and pharmaceutical applications. Stepan Company was founded in 1932 and is headquartered in Northbrook, Illinois.
Stock analysis
Stepan Company (SCL) currently trades at $66.94, while our model-based Fair Value estimate is $32.66, 51% 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 $35.10 per share, and 1 of the 25 models we run sit above the $66.94 price.
Bear case: the Earnings-Based group reads lowest at $13.23, and 24 of the 25 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $16.52 (bear) to $48.98 (bull), the price of $66.94 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 56/100 (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.
Stepan Company reported revenue of $2.3B in FY2025 versus $2.3B in FY2021, a compound −0.1%/yr. Reported net income was $46.9M in FY2025, compounding −23.6%/yr from FY2021.
Key figures
Market cap $1.5B Small · P/E ratio 352.3 · P/S ratio 7.08 · EPS (TTM) $0.1900 · Dividend yield 2.3% · Net margin −0.1% · Return on equity −0.2% · Return on assets (EBIT) 5.1% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 32 out of 100 (medium confidence).
What moves the price
The share trades about 5% below its 52-week high and 63% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Basic Materials peers we cover trades at −43% fair-value upside, at −51%, SCL screens richer than that median.
Fair Value models
Bear$16.52Fair Value $32.66Bull$48.98
Price $66.94 · Downside -51.2%
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.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$9.29$16.30$25.1879
Growth DCF$9.52$15.78$23.3178
Residual Income$38.26$37.71$38.4676
All 25 models by family
DCF Models
FCF DCF$9.29$16.30$25.1879
Owner Earnings$10.48$17.94$27.4075
5Y Revenue Exit$13.78$26.95$43.4170
5Y EBITDA Exit$31.69$59.36$90.9773
5Y P/E Exit$12.00$23.72$35.5869
10Y Revenue Exit$10.99$21.70$35.3965
10Y EBITDA Exit$21.94$41.83$67.4466
10Y P/E Exit$10.65$19.70$30.1162
Earnings-Based
Graham-Dodd$14.04$36.90$48.1865
PEG = 1.0$7.07$10.10$13.1257
EPV$10.56$13.23$15.4574
Dividend Discount
Gordon GGM$11.91$21.03$29.2968
DDM Multi-Stage$11.91$17.28$22.2367
Multiples
P/E Multiple$26.32$35.10$43.8763
P/S Multiple$26.32$35.10$43.8758
P/B Multiple$96.37$128.49$160.6155
EV/EBIT$7.49$18.18$28.8761
EV/EBITDA$39.95$61.46$82.9766
EV/Revenue$3.21$15.13$27.0448
Asset-Based
NCAV (Graham)$24.48$32.80$48.9554
Growth DCF
Growth DCF$9.52$15.78$23.3178
Rev-Margin DCF$13.78$27.04$41.5871
Economic Profit
Residual Income$38.26$37.71$38.4676
ROIC Compounder$10.56$13.23$15.4572
Growth Earnings
Growth-Adj P/E$21.00$30.00$39.0067
The fair value above starts from this blend and is adjusted for a cyclical trough year.
In the last 6 months, no officer or director bought or sold shares on the open market.
Plus 4 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.
−5.6%
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.
+4.5%
Start year 2020 (pandemic). Over 10 years: +2.8% 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.
+5.9%
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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.
−13.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year−15.8%
Dividend (yield on the price)2.3%
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.−17.8% vs −4.7%, slowing
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.9% → 3%
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.
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).
+40.7%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +37.4% a year for the price.
News mood ⓘNews mood, the average tone of recent news (97 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.
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 6/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score56 · Above median
Fair Value upside−51.2% · Below median
Profitability
Return on assets2.0% · Below median
Net margin (12 months)−0.1% · Bottom 25%
Operating margin (12 months)6.2% · Below median
Growth and dividend
Revenue growth (quarter YoY)15.0% · Above median
Dividend yield (12 months)2.3% · Above median
Balance sheet
Debt / equity0.27× · Above median
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). "Stepan Company Fair Value". https://www.fairvalue-calculator.com/stock/SCL
Frequently asked questions
Is Stepan Company (SCL) overvalued or undervalued?
As of Nov 8, 2026, our model estimates a fair value of $32.66 versus a price of $66.94, about 51% lower (overvalued).
What is the fair value of SCL?
Our model-based fair value for Stepan Company is $32.66 (as of Nov 8, 2026), built from audited fundamentals. The current price: $66.94.
What is the quality score of SCL?
Stepan Company has a Quality Score of 56/100. 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 Stepan Company (SCL)?
Our model-based price target is the fair value of $32.66 (as of Nov 8, 2026) from 25 valuation models. Cautious scenario $16.52, optimistic scenario $48.98. It is a calculation from audited fundamentals, not an analyst target.
What is the Stepan Company stock forecast for 2026?
Our models put fair value at $32.66, about 51% lower versus a price of $66.94 (overvalued). Cautious scenario $16.52, optimistic scenario $48.98. The calculation is refreshed regularly with new filings.
What is the revenue of Stepan Company (SCL)?
Stepan Company reported trailing-twelve-month revenue of about $2.4B (latest available figure, as of Nov 8, 2026).
Does Stepan Company pay a dividend?
Stepan Company currently shows a dividend yield of 2.35% relative to its recent price (as of Nov 8, 2026).
How much is the dividend of Stepan Company (SCL) and when is the ex-dividend date?
Stepan Company pays a dividend of $1.57 per share a year, a dividend yield of 2.3%. The next ex-dividend date is Dec 1, 2026. A dividend has been paid every year since at least 1985. Free cash flow covers the dividend 0.71 times. Our assessment: Pays more than it earns. The company pays out more in dividends than it earns, and free cash flow clearly does not cover the dividend either. It may need to be cut unless profits recover.
What growth is priced into Stepan Company (SCL)?
For today's price to be fair in a discounted-cash-flow model, Stepan Company would have to grow free cash flow by +40.7 % per year for five years (discount rate 11.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +4.5 % per year. As of Nov 8, 2026.
What discount rate (WACC) does the fair value of SCL use?
Our models discount Stepan Company at 11.1 %: a base by market capitalisation (small), damped by beta 0.95, 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 Stepan Company that is +40.7 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (11.1 %) and the same formula as our fair value.
How much growth has Stepan Company (SCL) delivered so far?
Over the past 5 years revenue at Stepan Company grew +4.5 % a year. The price currently implies free-cash-flow growth of +40.7 % 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 Stepan Company (SCL) growing?
The median revenue growth in the sector is +9.8 % a year. That is the yardstick for the growth priced into Stepan Company (+40.7 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Stepan Company (SCL)?
The free-cash-flow yield on the price is 1.66 %: that much free cash flow Stepan Company produces per unit of market value. When it exceeds the discount rate of our models (11.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Stepan Company (SCL)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Stepan Company it is $32.66 per share (as of Nov 8, 2026), against a price of $66.94. 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 Stepan Company stock overvalued or undervalued in 2026?
As of Nov 8, 2026, SCL trades above its calculated fair value: price $66.94, fair value $32.66, a gap of about −51% (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 SCL?
No. The price is what the market pays today ($66.94); the fair value is what the company's own numbers justify ($32.66). For Stepan Company the two are $34.28 per share apart. That gap is exactly why we show both numbers side by side.
How much is Stepan Company worth?
The market values Stepan Company at about $1.5B (market capitalisation, as of Nov 8, 2026). Per share that is $66.94; our models calculate a fair value of $32.66 per share.
What do the bullish and bearish scenarios say about SCL?
Our models span a range for Stepan Company: cautious scenario $16.52, base $32.66, optimistic $48.98 per share (as of Nov 8, 2026, price $66.94). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of SCL?
Stepan Company trades at a price-to-earnings ratio of 352.3 (as of Nov 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $32.66 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 36.8 (reported for FY2025: 32.7). Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 4 of the years ex one-offs: 21.4. Other multiples: PEG 1.7, P/B 1.2, P/S 0.6, EV/EBITDA 8.3.
What is the PEG ratio of SCL?
The PEG ratio of Stepan Company is 1.75 (P/E divided by earnings growth, as of Nov 8, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Stepan Company (SCL)?
Balance-sheet figures for Stepan Company (as of Nov 8, 2026): return on equity −0.2%, debt of 0.27 per unit of equity. They feed the Quality Score of 56/100, which measures business quality independently of the share price.
How far is SCL from its 52-week high?
Stepan Company trades at $66.94, about 5% below its 52-week high of $70.65 and 63% above the low of $41.11 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $32.66 is for.
Which stocks are comparable to Stepan Company?
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 Stepan Company stock attractive at the current price?
The data as of Nov 8, 2026: price $66.94, calculated fair value $32.66 (−51%), Quality Score 56/100, 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 SCL calculated?
We run Stepan Company 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 $32.66 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. Stepan Company 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 Stepan Company (SCL)?
The closing price on Nov 6, 2026 was $66.94. Our model-based fair value is $32.66, about 51% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Stepan Company right now?
The price sits above even our optimistic bull case ($48.98). The favourable scenario is already priced in. The model range is unusually wide ($16.52 to $48.98). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.
Where does the earnings growth of Stepan Company (SCL) come from?
Earnings per share at Stepan Company grew −5.0 % a year from 2014 to 2025. Broken into its drivers: revenue per share +2.5 %, EBIT margin −8.1 %, tax rate +0.9 %, residual (interest, one-offs) −0.1 %. 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 Stepan Company
How large is the market capitalisation of Stepan Company (SCL)?
The market capitalisation of Stepan Company is $1.5B. 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 Stepan Company (SCL)?
The price-to-sales ratio of Stepan Company is 7.08 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Stepan Company (SCL)?
Earnings per share at Stepan Company are $0.1900 (price ÷ EPS = P/E 352.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Stepan Company (SCL)?
The dividend yield of Stepan Company is 2.3%. 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 Stepan Company (SCL)?
The net margin of Stepan Company is −0.1% (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 Stepan Company (SCL)?
The return on equity (ROE) of Stepan Company is −0.2% (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 Stepan Company (SCL)?
On an EBIT basis the return on assets of Stepan Company is 5.1% (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 Stepan Company (SCL)?
The operating margin of Stepan Company is 6.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Stepan Company (SCL)?
Revenue at Stepan Company is growing +15.0% versus a year earlier (3y avg −5.6%). 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 Stepan Company (SCL)?
Earnings per share at Stepan Company are growing +102% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Stepan Company (SCL) carry?
The net debt of Stepan Company is $558M (fiscal year 2025, ≈ 22.0 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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Nov 8, 2026