Is There Now An Opportunity In Solvay (ENXTBR:SOLB) After Portfolio Reshaping?

Simply Wall St

Tue, February 17, 2026 at 9:21 AM GMT+9 5 min read

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SLVYY

+1.52%

SVYSF

+8.20%

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If you are wondering whether Solvay shares still offer value at around €27.84, this article walks through the key numbers so you can judge for yourself.

The stock has returned 4.0% over the last 7 days and 2.7% over the past month, with a 1.8% return year to date, set against a 9.2% decline over the last year but gains of 44.3% over 3 years and 73.9% over 5 years.

Recent Solvay news has focused on the group’s ongoing reshaping after its earlier separation, with investors watching how the simplified portfolio influences capital allocation and balance sheet priorities. This backdrop helps explain why the market has been reassessing both the risk profile and the potential of the remaining business.

Our valuation checks give Solvay a score of 4/6. We will break this down using several standard valuation methods, and we will finish by looking at a broader way to think about what that score really means for long term investors.

Find out why Solvay’s -9.2% return over the last year is lagging behind its peers.

Approach 1: Solvay Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model takes the cash Solvay is expected to generate in the future, then discounts those cash flows back to today to estimate what the business might be worth right now.

For Solvay, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flows in €. The latest twelve month free cash flow figure is a loss of €297.81 million, so the starting point is weak, but analysts and extrapolated estimates in this model point to positive free cash flow in the years ahead.

The projections used in this model show free cash flow moving to around €270.08 million by 2035, with interim years generally in the €250 million to €300 million range. These figures are a mix of analyst estimates for the nearer term and Simply Wall St extrapolations further out.

After discounting all those projected cash flows back to today, the model arrives at an estimated intrinsic value of €36.68 per share. Against a current share price of around €27.84, the DCF output suggests the stock is 24.1% undervalued on this set of assumptions.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Solvay is undervalued by 24.1%. Track this in your watchlist or portfolio, or discover 222 more high quality undervalued stocks.

SOLB Discounted Cash Flow as at Feb 2026

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Solvay.

Approach 2: Solvay Price vs Earnings

For profitable companies, the P/E ratio is a useful way to think about value because it links what you pay today to the earnings the business is already generating. Higher growth expectations and lower perceived risk usually support a higher P/E, while slower growth or higher risk tends to justify a lower, more conservative multiple.

Story Continues  

Solvay currently trades on a P/E of 18.89x. That sits below both the Chemicals industry average P/E of 22.22x and the broader peer group average of 22.80x, so the market is valuing Solvay’s earnings at a discount to many peers.

Simply Wall St’s Fair Ratio for Solvay is 20.01x. This is a proprietary estimate of what a reasonable P/E could be, given factors like the company’s earnings growth profile, profit margins, industry, market cap and specific risks. Because it is tailored to Solvay’s own characteristics rather than just comparing it with a broad industry or a handful of peers, the Fair Ratio can give a more company specific view of value.

Set against this Fair Ratio of 20.01x, the current P/E of 18.89x suggests the shares are trading below that tailored reference point.

Result: UNDERVALUED

ENXTBR:SOLB P/E Ratio as at Feb 2026

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Upgrade Your Decision Making: Choose your Solvay Narrative

Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives, where you tell the story behind your numbers by linking your view of Solvay’s business, its forecast revenue, earnings and margins to a Fair Value estimate. You can then compare that Fair Value with the current price inside Simply Wall St’s Community page, see it refresh automatically when new earnings or news arrive, and decide what action makes sense for you, whether you lean closer to a bullish Fair Value near €37.00 or a more cautious view around €20.00.

For Solvay however we will make it really easy for you with previews of two leading Solvay Narratives:

🐂 Solvay Bull Case

Fair Value: €37.00

Implied discount to this Fair Value at the last close of €27.84: 24.7%

Revenue growth assumption: 61.8% decline

Focuses on cost reduction, digital tools and energy transition projects that are expected to reshape the cost base and support higher margins, even if revenues stay flat.

Assumes earnings rise from €154.0 million today to €512.0 million by 2028, with profit margins moving from 3.1% to 10.6%.

Sees a Fair Value of €37.00, which lines up with the most optimistic analyst price target and uses a future P/E of 9.6x on those 2028 earnings.

🐻 Solvay Bear Case

Fair Value: €26.44

Implied premium to this Fair Value at the last close of €27.84: 5.3%

Revenue growth assumption: 2.8% decline per year

Highlights softer revenue expectations, ongoing pricing pressure in soda ash and Coatis, and the drag from environmental liabilities on cash flow.

Assumes earnings reach €308.9 million by 2028 with margins improving, but also factors in lower future P/E multiples and a slightly higher discount rate.

Arrives at a Fair Value of €26.44 and a consensus price target of €29.83, with recent analyst updates leaning more cautious on the balance of risks and rewards.

If you want to see how these bullish and cautious cases are built in full, including all the earnings, margin and risk assumptions, Curious how numbers become stories that shape markets? Explore Community Narratives.

Do you think there’s more to the story for Solvay? Head over to our Community to see what others are saying!

ENXTBR:SOLB 1-Year Stock Price Chart

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

Companies discussed in this article include SOLB.BR.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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