A Look At LyondellBasell (LYB) Valuation After Earnings Beat And European Asset Sales

LyondellBasell Industries (NYSE:LYB) is back in focus after reporting first quarter 2026 earnings that topped market expectations, even as revenue declined year over year, alongside asset sales and cost reductions in Europe.

See our latest analysis for LyondellBasell Industries.

The earnings beat, asset sales and cost cuts appear to have shifted sentiment, with the share price returning 49.23% over 90 days and 68.93% year to date, while the 5 year total shareholder return of 7.33% loss displays the recent momentum contrasts with a weaker longer run record.

If this kind of turnaround story has your attention, it can be utilizeful to see what else is shifting and compare with 35 power grid technology and infrastructure stocks

With the stock up sharply, yet trading at an estimated 33% discount to one intrinsic value model and only about 2% below the average analyst tarobtain, the key question is whether there is still an opportunity here or if the market is already pricing in future growth.

Most Popular Narrative: 1.1% Undervalued

The most followed narrative pegs LyondellBasell Industries fair value at $75.82, just above the last close of $74.99. This frames the recent rally in a tighter valuation range.

LyondellBasell’s strategic investments in circular and advanced recycling (MoReTec-1 and plans for MoReTec-2, plus expanding renewable feedstock capacity in Europe) position the company to benefit from rising regulatory and consumer demand for recycled and sustainable plastics, improving product mix and supporting higher net margins and long-term revenue growth.

Read the complete narrative.

Want to see what kind of revenue curve and margin rebuild sit behind that fair value? The narrative leans heavily on a profit swing and a richer earnings multiple. Curious which assumptions really shift the model and how much growth is baked in over the next few years? The full breakdown connects those dots in detail.

Result: Fair Value of $75.82 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, there are still clear watchpoints, including a prolonged petrochemical downturn or slower progress on recycling projects. Either of these could undercut the current fair value story.

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

Next Steps

Seeing both optimism and concern in the story so far? Move quickly to check the numbers yourself and weigh the 3 key rewards and 2 important warning signs

Looking for more investment ideas?

If LyondellBasell has sharpened your focus on valuation and quality, do not stop here. Broaden your watchlist with ideas that fit your own style and risk comfort.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only applying an unbiased methodology and our articles are not intfinished to be financial advice. It does not constitute a recommfinishation to purchase or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focutilized 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.