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Relatively High EV/EBITDA Ratio Detected in Shares of Kronos Worldwide in the Commodity Chemicals Industry (KRO, OLN, WLK, TG, KOP)

By James Quinn

Below are the three companies in the Commodity Chemicals industry with the highest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Kronos Worldwide ranks highest with a an EV/EBITDA ratio of 35.77. Olin is next with a an EV/EBITDA ratio of 12.60. Westlake Chemical ranks third highest with a an EV/EBITDA ratio of 11.95.

Tredegar follows with a an EV/EBITDA ratio of 11.10, and Koppers Holdings rounds out the top five with a an EV/EBITDA ratio of 10.55.

SmarTrend recommended that subscribers consider buying shares of Kronos Worldwide on November 8th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $8.89. Since that recommendation, shares of Kronos Worldwide have risen 81.0%. We continue to monitor Kronos Worldwide for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest ev/ebitda ratio kronos worldwide olin westlake chemical tredegar koppers holdings