TacticScaleWhat LyondellBasell Industries Does & How It Makes Money (LYB)
Updated October 2026 · reflects LyondellBasell Industries's latest reported financials
Global chemical maker of plastics, olefins and chemical intermediates. It earns most of its revenue by producing and selling commodity and specialty chemicals and plastics in large volumes to industrial customers.
How LyondellBasell Industries makes money
It earns most of its revenue by producing and selling commodity and specialty chemicals and plastics in large volumes to industrial customers. It also earns money by licensing its process technologies and selling polyolefin catalysts.
What LyondellBasell Industries does
LyondellBasell is a large chemical company headquartered in Rotterdam, with operations in the U.S., Europe, Asia and other regions. It reports five segments: Olefins and Polyolefins in the Americas; Olefins and Polyolefins in Europe, Asia and International; Intermediates and Derivatives; Advanced Polymer Solutions; and Technology. Its core business turns feedstocks into olefins such as ethylene and propylene, then into polyethylene and polypropylene plastics. It also makes propylene oxide, oxyfuels, styrene and acetyls. Beyond commodity output, the company sells more specialized compounded products, including polypropylene compounds, engineered plastics, masterbatches and colors. Its Technology segment licenses chemical and polyolefin process technologies and sells catalysts. Demand comes from end markets such as packaging, automotive, furnishings and coatings.
Products & services
- Polyethylene
- Polypropylene
- Ethylene and propylene
- Propylene oxide and derivatives
- Oxyfuels
- Polypropylene compounds and masterbatches
What is LyondellBasell Industries worth?
On an owner-earnings DCF, LyondellBasell Industries's most-likely value is about $82 versus a recent price near $60 (36% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$58) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
⚠ High leverage — net debt is 5.4× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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