Current Price
$33.85
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 valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Dow Inc. respond.
Open DCF 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 Stock Valuation Data
Revenue/Share (TTM)
$54.54
FCF/Share (TTM)
$-1.93
ROIC (TTM)
-1.8%
ROE (TTM)
-16.7%
P/FCF
n/m
EV/EBITDA
47.5x
FCF Yield
-5.72%
Debt/Equity
1.29x
DOW currently has negative free cash flow, so cash-flow ratios such as P/FCF and FCF yield do not give a meaningful read on whether the stock is cheap or expensive. A DCF valuation is unreliable until cash generation turns positive — focus on the path to profitability instead.
Frequently Asked Questions
What is the intrinsic value of DOW?
Dow Inc. currently generates $-1.93 in free cash flow per share. At the current price of $33.85, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is DOW undervalued?
DOW currently has negative free cash flow, so its P/FCF ratio is not meaningful and cannot tell you whether the stock is cheap or expensive. With cash flow negative, a DCF-based undervalued or overvalued judgment is unreliable — look at the path back to positive cash generation instead.
How do I value DOW stock using DCF?
To perform a DCF valuation on Dow Inc.: (1) Start with the trailing free cash flow per share ($-1.93) as the base, (2) project future FCF growth over 5-10 years based on Chemicals industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting DOW's risk profile — with a debt-to-equity of 1.29x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to DOW?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Dow Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Chemicals trends, then discounting those amounts to today's dollars. DOW's ROIC of -1.8% suggests the company may face challenges generating returns above its cost of capital.
How does WACC affect DOW stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For DOW, with a debt-to-equity ratio of 1.29x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 47.5x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See DOW PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Basic Materials valuationsDCF and P/E value DOW with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair 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.