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Sociedad Química y Minera de Chile (SQM) recently moved above its 50 day moving average, with the stock gaining 6.5% over the past month. Positive earnings estimate revisions have supported this technical shift.

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

Zooming out, Sociedad Química y Minera de Chile’s recent 6.68% 30 day share price return and 3.12% 7 day move contrast with an 8.49% decline over 90 days, while the 1 year total shareholder return of 66.51% and 5 year total shareholder return of 68.56% point to strong longer term gains.

If SQM’s momentum has your attention, this could be a good moment to broaden your view and check out 28 best rare earth metal stocks.

Sociedad Química y Minera de Chile has a broad business across lithium, iodine and specialty fertilizers, and the stock has just pushed higher again. The key question now is whether that strength is already fully reflected in the price.

Most Popular Narrative: 12.2% Undervalued

On the latest close, Sociedad Química y Minera de Chile traded at $74.47 compared with a widely followed fair value estimate of $84.78. That gap sits on detailed assumptions about lithium and specialty chemicals.

Expansion of lithium production capacity in Australia (Mt. Holland and Kwinana refinery reaching full capacity) and Chile, along with investments in new projects like Salar Futuro, supports long-term volume growth and higher revenue potential for SQM over the next several years.

Read the complete narrative.

It raises the question of what earnings path needs to align with that capacity story. The narrative leans on faster profit growth, richer margins and a reset valuation multiple. The mix of revenue expansion and profitability assumptions is precise. The smallest shift in those inputs could change the $84.78 figure meaningfully.

Result: Fair Value of $84.78 (UNDERVALUED)

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

However, investors also need to weigh concentration in volatile lithium markets, as well as the risk that regulatory or environmental hurdles slow Sociedad Química y Minera de Chile’s expansion plans.

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

Another View on Sociedad Química y Minera de Chile’s Valuation

Analysts see Sociedad Química y Minera de Chile as 12.2% undervalued against a fair value of $84.78, yet the current P/E of 26.1x is slightly above the fair ratio of 25.3x and above the 25.4x peer average. That points to some valuation stretch. Is this a reward for growth expectations, or a margin of risk?

See what the numbers say about this price — find out in our valuation breakdown.

NYSE:SQM P/E Ratio as at Aug 2026

Next Steps

With both optimism and concern in the mix around Sociedad Química y Minera de Chile, it makes sense to move quickly and review the underlying data for yourself so you can decide how the balance of opportunities and risks fits your approach. To help frame that view, take a closer look at the 3 key rewards and 1 important warning sign.

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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