Current Price
$33.85
PE Ratio (TTM)
n/m
Intrinsic Value
Use the calculator below to estimate
COMPETITIVE MOAT
↑Scale and Integration
Dow's massive global manufacturing footprint and integrated value chains create significant cost advantages. This scale makes it difficult for smaller competitors to match their production efficiency and reach.
↑Product Innovation
Continuous investment in R&D yields specialized chemical solutions for diverse industries. This innovation allows Dow to command premium pricing and maintain customer loyalty for high-performance products.
↑Customer Relationships
Long-standing relationships with major industrial customers provide stable demand and insights into market needs. These deep ties foster switching costs and ensure a consistent revenue stream.
INVESTMENT RISKS
↓Commodity Price Volatility
Fluctuations in raw material and energy prices directly impact Dow's input costs and profit margins. This inherent volatility can lead to unpredictable earnings.
↓Regulatory Environment
Increasing environmental regulations and compliance costs pose a significant challenge. Stricter standards can necessitate costly operational changes and limit product development.
↓Global Economic Slowdown
Demand for chemicals is closely tied to global industrial activity. A widespread economic downturn would reduce sales volumes and pressure pricing across Dow's portfolio.
Customize the DOW PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Dow Inc. respond.
Open PE Calculator for DOWCompany Overview
Dow Inc. is a global leader in materials science, delivering diverse solutions for key industries such as packaging, infrastructure development, mobility, and consumer products. The company's reach extends across numerous regions, including the United States, Canada, Europe, the Middle East, Africa, India, the Asia Pacific, and Latin America. Its operations are structured into three main divisions: Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings. The Packaging & Specialty Plastics segment is responsible for producing foundational chemicals like ethylene, propylene, and aromatics, along with a range of polymers including polyethylene, polyolefin elastomers, ethylene vinyl acetate, and ethylene propylene diene monomer rubbers. The Industrial Intermediates & Infrastructure segment offers a broad spectrum of products, from ethylene and propylene oxides, propylene glycol, and polyether polyols to aromatic isocyanates and comprehensive polyurethane systems. This division also provides coatings, adhesives, sealants, elastomers, and composite materials, alongside essential chemicals such as caustic soda, ethylene dichloride, and vinyl chloride monomers. Additionally, it supplies specialized products like cellulose ethers, redispersible latex powders, and acrylic emulsions. The Performance Materials & Coatings division focuses on architectural and industrial paint and coating solutions, catering to diverse applications including maintenance, protective finishes, wood, metal packaging, traffic markings, thermal paper, and leather goods. This segment also develops high-performance silicones, specialty materials, and the necessary feedstocks and intermediates for silicone production. In addition to its core materials science endeavors, Dow Inc. also engages in the property and casualty insurance, and reinsurance businesses. The company was founded in 2018 and is headquartered in Midland, Michigan.
Financial Metrics — DOW PE Stock Valuation Data
PE Ratio (TTM)
n/m
PEG Ratio
0.36
Earnings Yield
-11.31%
ROE (TTM)
-16.7%
Revenue/Share (TTM)
$54.54
Dividend Yield
4.14%
Debt/Equity
1.29x
Frequently Asked Questions
What is the PE ratio of DOW?
The trailing twelve-month PE ratio of DOW reflects how much investors pay per dollar of Dow Inc.'s earnings. This metric is most useful when compared to Chemicals peers and the company's own historical range.
Is DOW overvalued based on PE ratio?
DOW's PE of -8.8x combined with a PEG ratio of 0.36 provides a growth-adjusted perspective. A PEG below 1.0 suggests DOW may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Chemicals, a DCF analysis may be more appropriate.
How do I value DOW stock using PE ratio?
To value Dow Inc. using PE: (1) Compare the current PE (-8.8x) against the Chemicals median to assess relative pricing, (2) check the PEG ratio (0.36) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of DOW?
DOW's PEG ratio is 0.36, calculated by dividing the PE ratio (-8.8x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for DOW stock valuation?
PE ratio gives a quick relative read — how DOW is priced versus Chemicals peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See DOW DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Basic Materials valuationsP/E and DCF value DOW with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.