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Dow Inc (DOW) Fair Value & Analysis

Basic Materials · US · Market cap $21.8B · ISIN US2605571031

What is Dow Inc really worth?

DI Dow Inc logo Dow Inc DOW · US
Price$30.36
Fair Value$42.06
Upside+38.5%
Quality33/100

Below-average quality, trading 28% below our fair value of $42.06.

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Risks

!Weak Growth (revenue 5y +0.7 %/yr)
!Loss-making · -7.2% net margin
!Moderate debt · negative free cash flow
!Trails peers (4/13)
!Narrow moat 15/100
!Evidence only medium, so the estimate is less certain

For context

·5.76% dividend yield
Evidence: Medium Range $20.60 – $63.52

Fair value as of: Aug 31, 2026

From 4 valuation models · updated 5 days ago

Fair value updated Aug 31, 2026, revised from $21.03 to $42.06 (+100.0%) since Aug 27, 2026. Share price +0.1% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The large discount to fair value meets weak quality (33/100). That raises the risk this is a value trap rather than a bargain.
  • The model range is unusually wide ($20.60 to $63.52). The outcome hinges heavily on assumptions, so read the point estimate with caution.

Price vs Fair Value (5 years)

$55.65 $19.83 Fair Value $42.06 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 31, 2026.

How to read this chart

60‑month range $19.83 – $55.65 · fair‑value band $20.60 – $63.52 · the $30.36 price screens below the $42.06 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 31, 2026.

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Analysis

Dow Inc (DOW) currently trades at $30.36, while our model-based Fair Value estimate is $42.06, implying the stock looks roughly 27.8% undervalued today. The Quality Score stands at 33/100 (below-average quality), in the Basic Materials sector. Bull case: the Multiples group reads highest at a median of $24.83 per share, and 0 of the 4 models we run sit above the $30.36 price. Bear case: the Asset-Based group reads lowest at $14.88, and 4 of the 4 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Dow Inc generated revenue of $39.3B at a net margin of −7.2%. Revenue declined 6.1% year over year. It earns a return on equity of −15.3%. Net debt stands at $15.8B. Fundamentals as of Aug 31, 2026

Our scenario range runs from $20.60 (bear case) to $63.52 (bull case); at $30.36, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 28% below its 52-week high and 57% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at −48% fair-value upside, at 39%, DOW screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Gordon GGM best evidence $18.98 $20.78 $23.51 69
DDM Multi-Stage $18.98 $23.82 $30.59 67
EV/EBITDA $14.10 $24.83 $35.56 65
All 4 models by family
Dividend Discount
Gordon GGM best evidence $18.98 $20.78 $23.51 69
DDM Multi-Stage $18.98 $23.82 $30.59 67
Multiples
EV/EBITDA $14.10 $24.83 $35.56 65
Asset-Based
NCAV (Graham) $11.11 $14.88 $22.21 54

Widest divergence: Multiples ($24.83) versus Asset-Based ($14.88). Highest evidence: Gordon GGM (69).

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Key figures & financial health

P/S ratio 0.56 TTM
EPS (TTM) $−3.99
Dividend yield 5.8%
Net margin −6.6% FY2025
Return on equity −15.3% TTM
Return on assets (EBIT) 5.9% avg 5y
More key figures
Profitability
Operating margin 0.0% TTM
Growth
Revenue (TTM) $39.3B TTM
Revenue growth (YoY) −6.1% 3y avg −11.1%
EPS growth (YoY) −73.3%
Balance sheet & cash flow
Free cash flow −$1.4B FY2025
Net debt $15.8B FY2025

Figures from reported company fundamentals · as of Aug 31, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 33/100

Of which business quality 31 · Market factors (momentum, volatility) 54

Profitability 11
Margins and returns on capital today
Quality Growth 5
Are margins and returns improving?
Cashflow 9
Earnings quality: real cash, not paper profit
Fin. Strength 26
Balance sheet, leverage, solvency risk
Investment 92
Disciplined investing over empire-building
Low Volatility 67
Calm price path (market factor)
Momentum 42
Price trend over the last 3–12 months (market factor)
52W Momentum 58
Distance to the 52-week high (market factor)
Net Issuance 80
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Dow Inc., through its subsidiaries, provides various materials science solutions for packaging, infrastructure, mobility, and consumer applications in the United States, Canada, Europe, the Middle East, Africa, India, the Asia Pacific, and Latin America.

Full company description

Dow Inc., through its subsidiaries, provides various materials science solutions for packaging, infrastructure, mobility, and consumer applications in the United States, Canada, Europe, the Middle East, Africa, India, the Asia Pacific, and Latin America. The company operates through Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings segments. The Packaging & Specialty Plastics segment provides ethylene, propylene, polyethylene, and aromatics products; and other ethylene derivatives, such as polyolefin elastomers, ethylene vinyl acetate, and ethylene propylene diene monomer rubber. The Industrial Intermediates & Infrastructure segment offers polyurethanes, including propylene oxide, propylene glycol, and polyether polyols; aromatic isocyanates and fully formulated polyurethane systems; and chlor-alkali and vinyl comprising chlorine and caustic soda, ethylene dichloride, and vinyl chloride monomer; and construction chemicals consisting of cellulose ethers, redispersible latex powders, and acrylic emulsions, as well as coatings, adhesives, sealants, elastomers, and composites. The Performance Materials & Coatings segment provides architectural paints and coatings, and industrial coatings; and acrylics-based building blocks, silicon metals, siloxanes, and intermediates. The company also engages in the property and casualty insurance, as well as reinsurance business. The company was founded in 1897 and is headquartered in Midland, Michigan.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Dow Inc reported revenue of $40.0B in FY2025 versus $55.0B in FY2021, a compound −7.7%/yr. Reported net income was −$2.6B in FY2025.

Growth Quality 6/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
$40.0B
Latest YoY
−7.0%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−11.1%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.7%
Avg. revenue growth/yr (16Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.7%
Value creation/yr We only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Revenue −7.7%/yr
FY21 $55.0B
FY22 $56.9B
FY23 $44.6B
FY24 $43.0B
FY25 $40.0B
Net income
FY21 $6.3B
FY22 $4.6B
FY23 $589M
FY24 $1.1B
FY25 −$2.6B
Character of growth · EPS growth decomposed (2015-2025) −19.6 % p.a.
Revenue per share +1.1 %

of which total revenue +0.3 % · buybacks/dilution +0.7 %

EBIT margin −9.7 %
Tax rate −0.8 %
Residual (interest, one-offs) −11.2 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Dow Inc Fair Value". https://www.fairvalue-calculator.com/stock/DOW

Peer Group

Chemicals · 341 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 33 · Bottom 25%
Fair Value upside +39% · Top 25%
Return on assets 0% · Bottom 25%
Net margin (TTM) −7% · Bottom 25%
Operating margin (TTM) 0% · Bottom 25%
Revenue growth −6% · Below median
Dividend yield (TTM) 5.8% · Top 25%
Debt / equity 1.05× · Higher than 75% of peers

Valuation Multiples vs Chemicals median · lower = cheaper

P/B 1.36× · Cheaper than median
P/S (TTM) 0.56× · Cheaper than median
EV/EBITDA 13.2× · Pricier than median
PEG 38.89× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE85 · sector 0
FUTURE0 · sector 22
PAST0 · sector 20
HEALTH47 · sector 94
DIVIDEND100 · sector 32

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Chemicals stocks, each showing price versus our Fair Value estimate (as of Aug 31, 2026).

Stock Price Fair Value vs Fair Value
Saudi Basic Industries Corporation 2010 49.50 SAR 18.13 SAR −63%
A. Schulman, Inc SLMNP $849.00 $203.64 −76%
Ningxia Baofeng Energy Group 600989 ¥24.49 ¥20.17 −18%
Zhejiang Juhua Co 600160 ¥41.32 ¥21.62 −48%
Rongsheng Petrochemical Co 002493 ¥13.76 ¥2.39 −83%
Zangge Mining Company 000408 ¥78.04 ¥20.99 −73%
Ganfeng Lithium Group 002460 ¥52.53 ¥16.17 −69%
PT Barito Pacific Tbk, BRPT 1,855 IDR 1,584 IDR −15%
Hengli Petrochemical Co 600346 ¥18.87 ¥17.09 −9%
LG Chem, Ltd 051910 263,000 KRW 587,755 KRW +123%

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Frequently asked questions

Is Dow Inc (DOW) overvalued or undervalued?
As of Aug 31, 2026, our model estimates a fair value of $42.06 versus a price of $30.36, about +39% upside (undervalued).
What is the fair value of DOW?
Our model-based fair value for Dow Inc is $42.06 (as of Aug 31, 2026), built from audited fundamentals. The current price: $30.36.
What is the quality score of DOW?
Dow Inc has a Quality Score of 33/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Dow Inc (DOW)?
Dow Inc reported trailing-twelve-month revenue of about $39.3B (latest available figure, as of Aug 31, 2026).
What is the net profit margin of DOW?
The net profit margin of Dow Inc is about −7.2%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Dow Inc pay a dividend?
Dow Inc currently shows a dividend yield of about 5.76% relative to its recent price (as of Aug 31, 2026).
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