* Note: Prices are in Million (M) USD.
Description:
Dow Inc. is an American commodity chemical company. The company is headquartered in Midland, Michigan.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $2,399 M
Debt : $18,104 M
EBITDA : $4,512 M
Net Debt (Debt - Cash): $15,705 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
This criteria used industry in which company operates:
Sector: Basic materials
Industry: Chemicals
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 16 overlapping fiscal years (max 20).Average Free Cash Flow: $1,548 M
Average Revenue: $50,049 M
Revenue Converted To Free Cash Flow (%): 3.1%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $42,964 M
Revenue 4 Years Ago (2020-12-31): $38,542 M
Last 5 Years Average Revenue Growth: 2%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $705 M
Share Count 5 Years Ago (2020-12-31): $742 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Message: Cannot calculate payout ratio because EPS is either 0 or negative.
Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 16 valid ROE years (max 20).Average ROE: 12.0%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $25
52-Week Low: $21
Threshold Price (15% Above 52-Week Low): $24
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $15,318 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 17 points to above Dow Inc (DOW) stock.
Last 6 Years Avg PE 19.02, Fair Value PE 12, Industry Based PE 15, Growth Based PE 2, RCFC Based PE 12.47, ROE Based PE 19.62, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 13.88. The fair value of Dow Inc (DOW) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
