Dow Inc. (DOW) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+86.9%

$63.64

vs $34.05 price

Levered DCF

$24.81

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

1.64

Distress zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	-6.34×	25.56×	66.88×	7.97×	6.72×	33.84×	-23.69×	8.27×
P/B	1.04×	1.63×	2.08×	1.75×	2.32×	3.31×	3×	1.39×
P/S	0.42×	0.66×	0.87×	0.64×	0.77×	1.07×	0.95×	0.62×
EV / EBITDA	27.29×	8.32×	13.03×	5.17×	4.74×	9.45×	21.77×	7.05×
Gross margin	6.0%	10.4%	11.1%	13.8%	18.9%	12.5%	13.9%	13.5%
Operating margin	0.7%	4.8%	5.6%	9.4%	14.3%	6.7%	8.4%	9.3%
Net margin	-6.6%	2.6%	1.3%	8.1%	11.5%	3.2%	-3.2%	7.5%
Current ratio	1.97×	1.61×	1.77×	1.81×	1.58×	1.72×	1.57×	1.84×
Debt / equity	1.22×	1.02×	0.88×	0.81×	0.89×	1.53×	1.41×	0.74×
Interest coverage	0.3×	2.72×	3.42×	8.19×	11.45×	2.93×	3.8×	5.26×
Dividend yield	9.0%	7.0%	5.1%	5.5%	4.9%	5.0%	5.1%	10.0%
Payout ratio	-56.8%	176.2%	334.8%	43.8%	32.8%	169.1%	-152.7%	82.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-16.4%	6.4%	3.2%	22.1%	34.7%	9.9%	-10.1%	16.8%
Return on invested capital	0.5%	3.2%	5.2%	8.1%	12.3%	3.1%	7.0%	6.8%
Return on assets	-4.5%	1.9%	1.0%	7.6%	10.0%	2.0%	-2.3%	5.8%
Free cash flow yield	-8.7%	-0.5%	7.0%	14.9%	13.1%	11.8%	9.7%	5.7%
Earnings yield	-15.8%	4.0%	1.5%	12.6%	15.0%	3.0%	-3.4%	12.1%
Enterprise value	$32.4B	$43.7B	$52.2B	$49.2B	$55.3B	$55B	$57.4B	$54.4B
Net debt / EBITDA	13.28×	2.94×	3.36×	1.35×	1.13×	2.39×	6.36×	2.23×
Cash conversion cycle (days)	84	74	68	65	78	91	87	97