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The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-07-30), Element Solutions's 1-Year Sharpe Ratio is 2.27.
Element Solutions (NYSE:ESI) 1-Year Sharpe Ratio Explanation
The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.
Element Solutions 1-Year Sharpe Ratio Related Terms
ESI vs WLK, SOLS, EMN: 1-Year Sharpe Ratio Comparison
For the Specialty Chemicals subindustry, Element Solutions's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Element Solutions 1-Year Sharpe Ratio vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Element Solutions's 1-Year Sharpe Ratio distribution charts can be found below:
* The bar in red indicates where Element Solutions's 1-Year Sharpe Ratio falls into.
The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.
Element Solutions (ESI) has a 1-Year Sharpe Ratio of 2.27 as of Jul. 30, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Element Solutions and its competitors.
Is Element Solutions' 1-Year Sharpe Ratio too high?
Element Solutions' current 1-Year Sharpe Ratio is 2.27. Overall, Element Solutions has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Element Solutions' 1-Year Sharpe Ratio compare to WLK and SOLS?
Element Solutions' 1-Year Sharpe Ratio of 2.27 can be compared against companies in the Chemicals industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sharpe Ratio for a Chemicals company?
A good 1-Year Sharpe Ratio depends on the Chemicals industry context. However, 1-Year Sharpe Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Element Solutions and its competitors. Element Solutions's current 1-Year Sharpe Ratio is 2.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Element Solutions stock overvalued right now?
Based on GuruFocus' analysis, Element Solutions (ESI) is currently considered Fairly Valued. The stock's GF Value™ is $33.82, compared to a current price of $35.62 — trading 5.3% above its estimated fair value. The current 1-Year Sharpe Ratio is 2.27. Element Solutions' overall GF Score™ is 82/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Element Solutions (ESI), the current 1-Year Sharpe Ratio is 2.27 as of Jul. 30, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Element Solutions (ESI) Overvalued in 2026?
Based on GuruFocus' analysis, Element Solutions stock appears to be overvalued.
The current stock price of $35.62 is trading 5.3% above its estimated GF Value™ of $33.82.
GuruFocus considers Element Solutions to be Fairly Valued.
Key valuation signals for ESI:
1-Year Sharpe Ratio: 2.27
GF Value™: $33.82 vs. price of $35.62 (5.3% above fair value)
No single metric tells the full story. See the ESI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Element Solutions Inc is a specialty chemicals company whose businesses supply a broad range of solutions that enhance the performance of products people use every day. The company's reportable segments are Electronics and Industrial & Specialty. The Electronics segment, which generates maximum revenue, researches, formulates, and sells specialty chemicals and process technologies for all types of electronics hardware, from complex printed circuit board designs to semiconductor packaging. This segment's wet chemicals for metallization, surface treatments, and solderable finishes form the physical circuitry pathways, and its assembly materials, such as solder, pastes, fluxes, and adhesives, join those pathways together.
82GF Score
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1-Year Sharpe Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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