Dow Inc. (DOW) Valuation
Historical valuation analysis based on 1279 data points (2021-09-14 to 2026-10-16)
Dow is one of the largest plastics and chemicals producers in the world, ranking in the top five for upstream plastics production, such as polyethylene, or PE, and polypropylene, or PP. It has thre...
Dow Inc. (DOW) currently trades at a P/E ratio of 65.14 (historical range: 4.80–84.25, median: 21.76), placing it at the 88th percentile — expensive relative to its history, P/S ratio of 0.52 (range: 0.35–0.98, 20th percentile — below its historical average), EV/EBITDA of 29.36 (range: 5.00–83.67, 67th percentile).
Over the historical period (2021-09-14 to 2026-10-16), Dow Inc.'s P/E ratio has expanded by 260% over the observed period (from an average of 12.7 to 45.6).
Dow Inc. trades above its historical valuation range, with most metrics above their median levels.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 65.14 | 21.76 | 88th | expensive relative to its history |
| P/S Ratio | 0.52 | 0.69 | 20th | below its historical average |
| EV/EBITDA | 29.36 | 21.18 | 67th | above its historical average |
| FCF Yield | 15.46% | 3.70% | 94th | cheap relative to its history |
Dow Inc. (DOW) Valuation & P/E History
Dow Inc. (DOW) is a US-listed stock operating in the Basic Materials sector, specifically the Plastic Materials, Synth Resins & Nonvulcan Elastomers industry currently trading at $29.90 with a market capitalization of $21.6 billion. This page provides historical valuation analysis for DOW based on 1279 data points covering 2021-09-14 to 2026-10-16. The P/E ratio of 65.14 is above the historical median of 21.76, placing DOW at the 88th percentile of its valuation range. The P/S ratio of 0.52 compares to a median of 0.69.
DOW Valuation Metrics & Historical Range
The valuation table above shows Dow Inc.'s current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether DOW is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests DOW is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Dow Inc..
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is DOW Overvalued or Undervalued?
Dow Inc. trades above its historical valuation range, with most metrics above their median levels. The overall valuation percentile of 58 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive DOW is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full DOW analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.DOW trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.