DNOW PE Ratio & Valuation,Is DNOW Overvalued

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 Undervalued zone, suggesting that its current forward PS ratio of 0.31 is considered Undervalued compared with the five-year average of 34.45. The fair price of DNOW Inc (DNOW) is between 23.78 to 30.43 according to relative valuation methord. Compared to the current price of 14.09 USD , DNOW Inc is Undervalued By 40.75%.

Relative Value

Fair Zone

23.78-30.43

Current Price：14.09

40.75%

Undervalued

14.34

3.70

EV/EBITDA

DNOW Inc. (DNOW) has a current EV/EBITDA of 3.70. The 5-year average EV/EBITDA is 8.63. The thresholds are as follows: Strongly Undervalued below -2.82, Undervalued between -2.82 and 2.91, Fairly Valued between 14.35 and 2.91, Overvalued between 14.35 and 20.08, and Strongly Overvalued above 20.08. The current Forward EV/EBITDA of 3.70 falls within the Historic Trend Line -Fairly Valued range.

5.24

EV/EBIT

DNOW Inc. (DNOW) has a current EV/EBIT of 5.24. The 5-year average EV/EBIT is 16.70. The thresholds are as follows: Strongly Undervalued below -22.26, Undervalued between -22.26 and -2.78, Fairly Valued between 36.18 and -2.78, Overvalued between 36.18 and 55.65, and Strongly Overvalued above 55.65. The current Forward EV/EBIT of 5.24 falls within the Historic Trend Line -Fairly Valued range.

0.31

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 0.38, Undervalued between 0.38 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.

8.45

P/OCF

DNOW Inc. (DNOW) has a current P/OCF of 8.45. The 5-year average P/OCF is 661.59. The thresholds are as follows: Strongly Undervalued below -4981.19, Undervalued between -4981.19 and -2159.80, Fairly Valued between 3482.98 and -2159.80, Overvalued between 3482.98 and 6304.38, and Strongly Overvalued above 6304.38. The current Forward P/OCF of 8.45 falls within the Historic Trend Line -Fairly Valued range.

8.35

P/FCF

DNOW Inc. (DNOW) has a current P/FCF of 8.35. The 5-year average P/FCF is 51.31. The thresholds are as follows: Strongly Undervalued below -247.33, Undervalued between -247.33 and -98.01, Fairly Valued between 200.63 and -98.01, Overvalued between 200.63 and 349.95, and Strongly Overvalued above 349.95. The current Forward P/FCF of 8.35 falls within the Historic Trend Line -Fairly Valued range.

DNOW Inc (DNOW) has a current Price-to-Book (P/B) ratio of 1.27. Compared to its 3-year average P/B ratio of 1.36 , the current P/B ratio is approximately -6.76% higher. Relative to its 5-year average P/B ratio of 1.42, the current P/B ratio is about -10.48% higher. DNOW Inc (DNOW) has a Forward Free Cash Flow (FCF) yield of approximately 11.79%. Compared to its 3-year average FCF yield of 10.94%, the current FCF yield is approximately 7.71% lower. Relative to its 5-year average FCF yield of 9.40% , the current FCF yield is about 25.35% lower.

1.27

P/B

Median3y

1.36

Median5y

1.42

11.79

FCF Yield

Median3y

10.94

Median5y

9.40

Competitors Valuation Multiple

The average P/S ratio for DNOW's competitors is 0.64, providing a benchmark for relative valuation. DNOW Inc Corp (DNOW) exhibits a P/S ratio of 0.31, which is -51.35% above the industry average. Given its robust revenue growth of 4.62%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

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.

4.62%

606.00M → 634.00M

Revenue Growth

83.26%

2.15 → 3.94

Margin Expansion

-77.96%

74.49 → 16.42

P/E Change

9.92%

13.01 → 14.30

Mkt Cap Growth

People Also Watch

Frequently Asked Questions

Is DNOW Inc (DNOW) currently overvalued or undervalued?

What is DNOW Inc (DNOW) fair value?

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. The fair price of DNOW Inc (DNOW) is between 23.78 to 30.43 according to relative valuation methord.

How does DNOW's valuation metrics compare to the industry average?

What is the current P/B ratio for DNOW Inc (DNOW) as of Dec 15 2025?

As of Dec 15 2025, DNOW Inc (DNOW) has a P/B ratio of 1.27. This indicates that the market values DNOW at 1.27 times its book value.

What is the current FCF Yield for DNOW Inc (DNOW) as of Dec 15 2025?

As of Dec 15 2025, DNOW Inc (DNOW) has a FCF Yield of 11.79%. This means that for every dollar of DNOW Inc’s market capitalization, the company generates 11.79 cents in free cash flow.

What is the current Forward P/E ratio for DNOW Inc (DNOW) as of Dec 15 2025?

As of Dec 15 2025, DNOW Inc (DNOW) has a Forward P/E ratio of 14.34. This means the market is willing to pay $14.34 for every dollar of DNOW Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for DNOW Inc (DNOW) as of Dec 15 2025?

As of Dec 15 2025, DNOW Inc (DNOW) has a Forward P/S ratio of 0.31. This means the market is valuing DNOW at $0.31 for every dollar of expected revenue over the next 12 months.

DNOW Valuation