Quaker Chemical's 15min chart shows Bollinger Bands expanding downward, bearish Marubozu.

Quaker Chemical's 15-minute chart has recently exhibited a notable trend, as indicated by the Bollinger Bands Expanding Downward and Bearish Marubozu pattern observed on September 3, 2025 at 10:45. This suggests that the market is currently being driven by a significant selling pressure, with sellers exerting control over market dynamics. Consequently, the bearish momentum is likely to persist.

Quaker Chemical Corporation (NYSE: KWR) has recently shown notable market trends, as indicated by the Bollinger Bands expanding downward and the Bearish Marubozu pattern observed on September 3, 2025, at 10:45. This suggests a significant selling pressure, with sellers exerting control over market dynamics. Consequently, the bearish momentum is likely to persist [1].

Analysts have estimated Quaker Chemical's fair value at US$262 using a 2 Stage Free Cash Flow to Equity model, which is 69% higher than the analyst price target of US$155. The current share price of US$145 signals that the stock might be 45% undervalued. The valuation is based on projecting future cash flows and discounting them to today's value using the Discounted Cash Flow (DCF) model [1].

The DCF model, while not perfect, provides a useful framework for valuation. It involves estimating the next ten years of cash flows, calculating the Terminal Value, and then discounting these values to their present worth. The Terminal Value is calculated using the Gordon Growth formula, assuming a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 3.1% and a cost of equity of 8.0%. The total equity value is then divided by the number of shares outstanding to determine the intrinsic value per share [1].

Quaker Chemical's intrinsic value is estimated to be US$262, which is significantly higher than the current share price of US$145. This suggests that the stock is undervalued by approximately 45%. However, it is important to note that valuations are imprecise instruments and can vary based on different assumptions and scenarios [1].

The DCF model does not consider cyclicality or future capital requirements, so it provides only a partial picture of a company's potential performance. Additionally, the cost of equity used as the discount rate may not fully capture the risks associated with the company. Further research into Quaker Chemical's risks, future earnings growth, and other high-quality alternatives is recommended [1].

References:
[1] https://finance.yahoo.com/news/quaker-chemical-corporations-nyse-kwr-125640751.html