BASF: Current Valuation Unjustified

Ahead of BASF's (OTCQX:BASFY) (OTCQX:BFFAF) Q2 earnings result, which is expected on 26 July, we decided to follow up on the Chemical giant. Since our last coverage (Q1 update), BASF's stock price has declined by 10.32% (Fig 1); however, the company reported a solid start to the year with volume and EBITDA recovery. In addition, BASF paid the dividend, and considering the exit of Wintershall Dea, the company was able to maintain a solid balance sheet. Our buy rating was backed by 1) an unjustified P/E disco ...