Stock fact sheet · data as of
Cabot Corp. (CBT): fair value, margin of safety and Wheel Score
Basic Materials · Chemicals - Specialty · United States · Blend
Is CBT undervalued?
Cabot Corp. (CBT) closed at 75.48 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 112.28, which puts the price 33% below it. 5 of the 9 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
There is a wide gap between DDM (27.15) and GLS Growth (225.42). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files CBT under Blend.
Nine valuation models for CBT
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 123.22 | +63% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 50.76 | -33% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 97.70 | +29% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 34.31 | -55% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 225.42 | +199% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 195.40 | +159% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 215.64 | +186% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 27.15 | -64% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 40.91 | -46% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -11.06 | -115% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 94.00 | +25% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Cabot Corp. scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 4.8/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are moderate - ROIC 12.0%, ROE 21.4%, ROA 8.7% - with debt at 0.78 times equity and a free-cash-flow yield of 7.2%.
The dividend yield is 2.44% at a payout ratio of 51%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Reinforcement Materials 63%, Performance Chemicals 37% (quarter Q3 FY2026).
Institutional ownership scores 10/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 11 Sep 2026.
| Piotroski F-score | 6 / 9 | ROIC | 12.0% |
|---|---|---|---|
| GLS Moat | 4.8 / 10 | ROE | 21.4% |
| Debt / equity | 0.78 | ROA | 8.7% |
| Free-cash-flow yield | 7.2% | Payout ratio | 51% |
| Institutions | 10 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 79: Good
With a Wheel Score of 79 - the Good band - Cabot Corp. clears the Sunday Scan's "70 or higher" rule. The parts: Value 25/25, Health 13/20, Moat 7/15, Premium 20/20, Stability 13/20; Moat (7/15) scores lowest.
Implied volatility is 43% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 3,964 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 321k shares a day on a market cap of $3.9B, with a beta of 0.82; the Stability part of the Wheel Score gives that 13 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 33% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 7 / 15 | moat 4.8/10 | |
| Premium | 20 / 20 | implied volatility 43% | |
| Stability | 13 / 20 | 321k shares/day, $3.9B cap, beta 0.82 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 2 Nov 2026 (after the close), 17 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Chemicals - Specialty
The 12 companies below are the closest to Cabot Corp. by market cap within the Chemicals - Specialty industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| AVNT Avient Corporation | 39.00 | 31.56 | -24% | 56Fair | $3.6B |
| PRM Perimeter Solutions, Inc. | 27.49 | 1.20 | -2200% | 45Weak | $4.5B |
| ASH Ashland Inc. | 71.59 | 44.92 | -59% | 55Fair | $3.3B |
| CLMT Calumet Inc. | 58.24 | 10.34 | -463% | 45Weak | $5.1B |
| BCPC Balchem Corp | 170.53 | 79.03 | -116% | 60Fair | $5.4B |
| FUL H.B. Fuller Company | 51.57 | 56.98 | +10% | 72Good | $2.8B |
| HWKN Hawkins, Inc. | 131.82 | 94.91 | -39% | 53Fair | $2.8B |
| WDFC WD-40 Company | 204.20 | 167.53 | -22% | 60Fair | $2.7B |
| KWR Quaker Houghton | 158.55 | 142.15 | -12% | 60Fair | $2.7B |
| SXT Sensient Technologies Corporation | 132.85 | 76.23 | -74% | 52Fair | $5.7B |
| NGVT Ingevity Corporation | 70.54 | 38.93 | -81% | 56Fair | $2.4B |
| IOSP Innospec Inc. | 96.60 | 95.97 | -1% | 63Fair | $2.4B |
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about CBT
Is CBT undervalued right now?
By the GLS models, yes: at 75.48 the stock is 33% below the average fair value of 112.28 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of CBT and what does it mean?
CBT scores 79 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for CBT?
112.28 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Cabot Corp. report earnings next?
The next earnings report is due on 2 Nov 2026 (after the close), 17 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does CBT have listed options, and how liquid are they?
Yes. The nightly snapshot found 172 listed contracts with 3,964 open interest across all expiries and implied volatility of 43% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.