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Recent performance snapshot

Sociedad Química y Minera de Chile (NYSE:SQM) has drawn attention after a 16.7% gain over the past month and a 28.1% increase over the past 3 months, contrasting with a 1.9% decline over the last day.

See our latest analysis for Sociedad Química y Minera de Chile.

At a share price of US$91.60, SQM has recently seen solid positive momentum, with a 30 day share price return of 16.7% and a 90 day share price return of 28.2%. The 1 year total shareholder return of 169.3% points to a much stronger longer term payoff than the short term moves alone might suggest.

If SQM’s run has you thinking about where else strong themes could show up next, it may be worth scanning the field using our screener of 33 best rare earth metal stocks

With SQM trading around US$91.60 and an estimated intrinsic value implying roughly a 23% gap, yet sitting above the average analyst target, you have to ask: is there still a buying opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 21.6% Overvalued

Against the last close at $91.60, the most followed narrative points to a fair value of about $75.33, putting its estimate below the current share price while still backing a growth story built around lithium and specialty chemicals.

Expansion of lithium and specialty chemical production capacity positions the company for sustained revenue and margin growth, supported by strong demand and tight global supply. Operational efficiency, diverse product streams, and rising barriers to entry protect the company’s competitive strength and earnings resilience against market volatility.

Read the complete narrative.

Curious what earnings profile and margin path could justify that valuation gap over the next few years? The narrative leans on rising profitability, richer cash flows and a future earnings multiple that assumes this expansion phase delivers.

Result: Fair Value of $75.33 (OVERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, there are clear swing factors to watch, including lithium price volatility and evolving Chilean regulations that could affect project timing, margins, and overall earnings visibility.

Find out about the key risks to this Sociedad Química y Minera de Chile narrative.

Another way to look at SQM’s value

The narrative highlights SQM as 21.6% overvalued at a fair value of about $75.33, but the SWS DCF model points in the other direction, with a future cash flow value of $118.58 per share and the stock trading 22.8% below that. Which perspective do you think better reflects SQM’s value?

Look into how the SWS DCF model arrives at its fair value.

SQM Discounted Cash Flow as at May 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Sociedad Química y Minera de Chile for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

Next Steps

With mixed signals on valuation and sentiment, now is a good time to look through the underlying data yourself and decide what feels reasonable. To weigh up the potential upside against the downside risks, start with a clear overview of the 3 key rewards and 1 important warning sign.

Looking for more investment ideas?

Do not stop with just one stock story. Use focused stock lists to spot new ideas that fit your style before the crowd pays attention.

• Target reliable cash generators with staying power by scanning companies in the solid balance sheet and fundamentals stocks screener (44 results).
• Hunt for potential value opportunities that combine quality and pricing appeal using the 51 high quality undervalued stocks.
• Lock in potential income streams by reviewing stocks highlighted in the 12 dividend fortresses.

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 SQM.

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