It's Getting Harder To Give Axiall The Benefit Of The Doubt
Stephen Simpson, CFA • Yesterday, 3:19 PM
- PVC prices haven't increased as much as analysts hoped, while ethylene prices have been quite strong throughout 2014.
- Building an ethylene cracker is a reasonable long-term move, but Axiall's execution has left something to be desired and more companies are moving into chloralkali.
- Axiall shares appear to be trading for less than half of asset replacement value, while a 6.5x multiple to 2015 EBITDA suggests a $47.50 fair value.