DNOW Relative Valuation
DNOW's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, DNOW is overvalued; if below, it's undervalued.
Historical Valuation
DNOW Inc (DNOW) is now in the Fair zone, suggesting that its current forward PS ratio of 0.00 is considered Fairly compared with the five-year average of 34.31. The fair price of DNOW Inc (DNOW) is between NaN to NaN according to relative valuation methord.
Relative Value
Fair Zone
NaN-NaN
Current Price：14.20
Fair
14.35
PE
1Y
3Y
5Y
Trailing
Forward
3.67
EV/EBITDA
DNOW Inc. (DNOW) has a current EV/EBITDA of 3.67. The 5-year average EV/EBITDA is 8.55. The thresholds are as follows: Strongly Undervalued below -3.30, Undervalued between -3.30 and 2.62, Fairly Valued between 14.48 and 2.62, Overvalued between 14.48 and 20.40, and Strongly Overvalued above 20.40. The current Forward EV/EBITDA of 3.67 falls within the Historic Trend Line -Fairly Valued range.
5.19
EV/EBIT
DNOW Inc. (DNOW) has a current EV/EBIT of 5.19. The 5-year average EV/EBIT is 16.64. The thresholds are as follows: Strongly Undervalued below -22.44, Undervalued between -22.44 and -2.90, Fairly Valued between 36.19 and -2.90, Overvalued between 36.19 and 55.73, and Strongly Overvalued above 55.73. The current Forward EV/EBIT of 5.19 falls within the Historic Trend Line -Fairly Valued range.
0.31
PS
DNOW Inc. (DNOW) has a current PS of 0.31. The 5-year average PS is 0.57. The thresholds are as follows: Strongly Undervalued below 0.39, Undervalued between 0.39 and 0.48, Fairly Valued between 0.66 and 0.48, Overvalued between 0.66 and 0.75, and Strongly Overvalued above 0.75. The current Forward PS of 0.31 falls within the Strongly Undervalued range.
8.38
P/OCF
DNOW Inc. (DNOW) has a current P/OCF of 8.38. The 5-year average P/OCF is 661.86. The thresholds are as follows: Strongly Undervalued below -4983.19, Undervalued between -4983.19 and -2160.66, Fairly Valued between 3484.38 and -2160.66, Overvalued between 3484.38 and 6306.91, and Strongly Overvalued above 6306.91. The current Forward P/OCF of 8.38 falls within the Historic Trend Line -Fairly Valued range.
8.28
P/FCF
DNOW Inc. (DNOW) has a current P/FCF of 8.28. The 5-year average P/FCF is 51.26. The thresholds are as follows: Strongly Undervalued below -247.56, Undervalued between -247.56 and -98.15, Fairly Valued between 200.66 and -98.15, Overvalued between 200.66 and 350.07, and Strongly Overvalued above 350.07. The current Forward P/FCF of 8.28 falls within the Historic Trend Line -Fairly Valued range.
DNOW Inc (DNOW) has a current Price-to-Book (P/B) ratio of 1.26. Compared to its 3-year average P/B ratio of 1.37 , the current P/B ratio is approximately -7.75% higher. Relative to its 5-year average P/B ratio of 1.42, the current P/B ratio is about -11.04% higher. DNOW Inc (DNOW) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 10.81%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 9.48% , the current FCF yield is about -100.00% lower.
1.27
P/B
Median3y
1.37
Median5y
1.42
11.89
FCF Yield
Median3y
10.81
Median5y
9.48
Competitors Valuation Multiple
The average P/S ratio for DNOW's competitors is , providing a benchmark for relative valuation. DNOW Inc Corp (DNOW) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 4.62%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of DNOW increased by 9.92% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 2.15 to 3.94.
The secondary factor is the Revenue Growth, contributed 4.62%to the performance.
Overall, the performance of DNOW in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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