DOW PE Ratio & Valuation,Is DOW Overvalued

DOW Relative Valuation

DOW'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, DOW is overvalued; if below, it's undervalued.

Historical Valuation

Dow Inc (DOW) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.42 is considered Undervalued compared with the five-year average of 16.06. The fair price of Dow Inc (DOW) is between 46.18 to 60.96 according to relative valuation methord. Compared to the current price of 23.97 USD , Dow Inc is Undervalued By 48.1%.

Relative Value

Fair Zone

46.18-60.96

Current Price：23.97

48.1%

Undervalued

-42.02

9.44

EV/EBITDA

Dow Inc. (DOW) has a current EV/EBITDA of 9.44. The 5-year average EV/EBITDA is 7.49. The thresholds are as follows: Strongly Undervalued below 4.41, Undervalued between 4.41 and 5.95, Fairly Valued between 9.03 and 5.95, Overvalued between 9.03 and 10.57, and Strongly Overvalued above 10.57. The current Forward EV/EBITDA of 9.44 falls within the Overvalued range.

50.62

EV/EBIT

Dow Inc. (DOW) has a current EV/EBIT of 50.62. The 5-year average EV/EBIT is 18.00. The thresholds are as follows: Strongly Undervalued below -16.19, Undervalued between -16.19 and 0.90, Fairly Valued between 35.09 and 0.90, Overvalued between 35.09 and 52.18, and Strongly Overvalued above 52.18. The current Forward EV/EBIT of 50.62 falls within the Overvalued range.

0.42

Dow Inc. (DOW) has a current PS of 0.42. The 5-year average PS is 0.76. The thresholds are as follows: Strongly Undervalued below 0.44, Undervalued between 0.44 and 0.60, Fairly Valued between 0.92 and 0.60, Overvalued between 0.92 and 1.08, and Strongly Overvalued above 1.08. The current Forward PS of 0.42 falls within the Strongly Undervalued range.

5.50

P/OCF

Dow Inc. (DOW) has a current P/OCF of 5.50. The 5-year average P/OCF is 6.71. The thresholds are as follows: Strongly Undervalued below 3.91, Undervalued between 3.91 and 5.31, Fairly Valued between 8.11 and 5.31, Overvalued between 8.11 and 9.51, and Strongly Overvalued above 9.51. The current Forward P/OCF of 5.50 falls within the Historic Trend Line -Fairly Valued range.

22.81

P/FCF

Dow Inc. (DOW) has a current P/FCF of 22.81. The 5-year average P/FCF is 14.99. The thresholds are as follows: Strongly Undervalued below -17.56, Undervalued between -17.56 and -1.28, Fairly Valued between 31.27 and -1.28, Overvalued between 31.27 and 47.54, and Strongly Overvalued above 47.54. The current Forward P/FCF of 22.81 falls within the Historic Trend Line -Fairly Valued range.

Dow Inc (DOW) has a current Price-to-Book (P/B) ratio of 0.97. Compared to its 3-year average P/B ratio of 1.71 , the current P/B ratio is approximately -43.07% higher. Relative to its 5-year average P/B ratio of 2.10, the current P/B ratio is about -53.78% higher. Dow Inc (DOW) has a Forward Free Cash Flow (FCF) yield of approximately -7.49%. Compared to its 3-year average FCF yield of 3.45%, the current FCF yield is approximately -316.85% lower. Relative to its 5-year average FCF yield of 6.77% , the current FCF yield is about -210.57% lower.

0.97

P/B

Median3y

1.71

Median5y

2.10

-7.49

FCF Yield

Median3y

3.45

Median5y

6.77

Competitors Valuation Multiple

The average P/S ratio for DOW's competitors is 1.41, providing a benchmark for relative valuation. Dow Inc Corp (DOW) exhibits a P/S ratio of 0.42, which is -70.45% above the industry average. Given its robust revenue growth of -8.33%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of DOW decreased by 39.16% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -13.12 to -14.84.

The secondary factor is the Revenue Growth, contributed -8.33%to the performance.

Overall, the performance of DOW in the past 1 year is driven by P/E Change. Which is more unsustainable.

-8.33%

10.88B → 9.97B

Revenue Growth

-43.89%

2.21 → 1.24

Margin Expansion

13.06%

-13.12 → -14.84

P/E Change

-39.16%

39.40 → 23.97

Mkt Cap Growth

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Frequently Asked Questions

Is Dow Inc (DOW) currently overvalued or undervalued?

What is Dow Inc (DOW) fair value?

DOW'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 Dow Inc (DOW) is between 46.18 to 60.96 according to relative valuation methord.

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

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

As of Dec 15 2025, Dow Inc (DOW) has a P/B ratio of 0.97. This indicates that the market values DOW at 0.97 times its book value.

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

As of Dec 15 2025, Dow Inc (DOW) has a FCF Yield of -7.49%. This means that for every dollar of Dow Inc’s market capitalization, the company generates -7.49 cents in free cash flow.

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

As of Dec 15 2025, Dow Inc (DOW) has a Forward P/E ratio of -42.02. This means the market is willing to pay $-42.02 for every dollar of Dow Inc’s expected earnings over the next 12 months.

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

As of Dec 15 2025, Dow Inc (DOW) has a Forward P/S ratio of 0.42. This means the market is valuing DOW at $0.42 for every dollar of expected revenue over the next 12 months.

DOW Valuation