DuPont

Methodology

DuPont's specialty materials business shows moderate cyclicality tied to industrial production and semiconductor demand, requiring attention to end-market cycle positioning. The company's portfolio reshaping creates earnings volatility from divestitures and restructuring charges. Fair value works best when normalizing for one-time items and using mid-cycle demand assumptions across key end markets.

Methodology

DuPont typically trades at PEG ratios between 1.0-2.0x, reflecting mixed sentiment about growth potential in electronics, water, and industrial specialty materials. The company's focus on higher-margin applications supports premium valuations to commodity chemicals. PEG works reasonably well though cyclicality and portfolio churn create earnings uncertainty.

Methodology

DuPont pays a modest dividend yielding 1-2% as the company balances shareholder returns with strategic investments and debt reduction from past M&A. The yield component adds value but remains secondary to growth potential. Total return combines modest income with earnings growth as the specialty materials portfolio matures and margins expand.