Latest Ratios: P/E Ratio -7.8x · EV/EBITDA 11.8x · ROE -14.8%. (2017–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $20.7B | $16.6B | $28.3B | $38.9B | $36.6B | $42.5B | $41.2B | $40.6B | — | — |
| Enterprise Value | $36.5B | $32.4B | $43.8B | $52.3B | $49.4B | $55.6B | $55.1B | $57.4B | — | — |
| P/E Ratio → | -7.76 | — | 25.56 | 66.88 | 8.02 | 6.77 | 33.84 | — | — | — |
| P/S Ratio | 0.52 | 0.42 | 0.66 | 0.87 | 0.64 | 0.77 | 1.07 | 0.95 | — | — |
| P/B Ratio | 1.16 | 0.95 | 1.59 | 2.03 | 1.72 | 2.27 | 3.17 | 2.88 | — | — |
| P/FCF | — | — | — | 14.30 | 6.75 | 7.71 | 8.51 | 10.26 | — | — |
| P/OCF | 20.05 | 16.12 | 9.71 | 7.48 | 4.89 | 6.06 | 6.62 | 6.85 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.81 | 1.02 | 1.17 | 0.87 | 1.01 | 1.43 | 1.34 | — | — |
| EV / EBITDA | 11.79 | 10.48 | 8.82 | 10.21 | 6.10 | 5.19 | 10.68 | 9.16 | — | — |
| EV / EBIT | 140.30 | — | 18.55 | 37.60 | 7.33 | 6.30 | 18.70 | — | — | — |
| EV / FCF | — | — | — | 19.25 | 9.12 | 10.10 | 11.39 | 14.50 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 6.0% | 6.0% | 10.4% | 11.1% | 13.8% | 18.9% | 12.5% | 13.9% | 13.5% | 25.8% |
| Operating Margin | 0.7% | 0.7% | 4.8% | 5.6% | 9.4% | 14.3% | 6.7% | 8.4% | 9.3% | 15.3% |
| Net Profit Margin | -6.6% | -6.6% | 2.6% | 1.3% | 8.1% | 11.5% | 3.2% | -3.2% | 7.5% | 1.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -14.8% | -14.8% | 6.0% | 2.9% | 22.9% | 39.8% | 9.0% | -6.5% | 16.4% | 1.7% |
| ROA | -4.5% | -4.5% | 1.9% | 1.0% | 7.4% | 10.1% | 2.0% | -2.0% | 5.7% | 0.6% |
| ROIC | 0.6% | 0.6% | 4.7% | 5.7% | 12.1% | 20.1% | 6.7% | 7.1% | 9.6% | 12.0% |
| ROCE | 0.5% | 0.5% | 4.3% | 5.2% | 10.8% | 15.8% | 5.1% | 6.3% | 8.6% | 10.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.12 | 1.12 | 0.99 | 0.86 | 0.79 | 0.86 | 1.46 | 1.36 | 0.71 | 0.78 |
| Debt / EBITDA | 6.33 | 6.33 | 3.56 | 3.21 | 2.07 | 1.50 | 3.69 | 3.05 | 2.39 | 2.87 |
| Net Debt / Equity | — | 0.90 | 0.87 | 0.70 | 0.60 | 0.70 | 1.07 | 1.19 | 0.61 | 0.55 |
| Net Debt / EBITDA | 5.10 | 5.10 | 3.12 | 2.63 | 1.58 | 1.23 | 2.70 | 2.68 | 2.06 | 2.02 |
| Debt / FCF | — | — | — | 4.95 | 2.37 | 2.39 | 2.88 | 4.24 | 8.11 | — |
| Interest Coverage | -1.90 | -1.90 | 3.11 | 1.89 | 10.35 | 12.82 | 3.36 | -0.32 | 4.54 | 3.87 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.97 | 1.97 | 1.61 | 1.77 | 1.81 | 1.58 | 1.72 | 1.57 | 1.84 | 1.89 |
| Quick Ratio | 1.25 | 1.25 | 0.98 | 1.16 | 1.19 | 1.02 | 1.20 | 0.99 | 1.16 | 1.31 |
| Cash Ratio | 0.42 | 0.42 | 0.25 | 0.30 | 0.34 | 0.23 | 0.46 | 0.22 | 0.21 | 0.43 |
| Asset Turnover | — | 0.68 | 0.75 | 0.77 | 0.94 | 0.87 | 0.63 | 0.71 | 0.78 | 0.55 |
| Inventory Turnover | 5.70 | 5.70 | 5.88 | 6.53 | 7.02 | 6.05 | 5.92 | 5.95 | 4.48 | 5.28 |
| Days Sales Outstanding | — | 60.62 | 58.31 | 54.10 | 49.74 | 63.44 | 69.98 | 64.20 | 54.71 | 100.57 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 7.3% | 9.0% | 6.9% | 5.1% | 5.5% | 4.9% | 5.0% | 5.1% | — | — |
| Payout Ratio | — | — | 176.2% | 334.8% | 43.8% | 32.8% | 169.1% | — | 82.5% | 695.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 3.9% | 1.5% | 12.5% | 14.8% | 3.0% | — | — | — |
| FCF Yield | — | — | — | 7.0% | 14.8% | 13.0% | 11.7% | 9.7% | — | — |
| Buyback Yield | 0.0% | 0.0% | 1.7% | 1.6% | 6.4% | 2.4% | 0.3% | 1.2% | — | — |
| Total Shareholder Yield | 7.3% | 9.0% | 8.7% | 6.7% | 11.8% | 7.2% | 5.3% | 6.4% | — | — |
| Shares Outstanding | — | $712M | $705M | $709M | $726M | $749M | $742M | $743M | $750M | $750M |
Includes 30+ ratios · 9 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying DOW stock.
Dow Inc.'s current P/E ratio is -7.8x. The historical average is 28.2x.
Dow Inc.'s current EV/EBITDA is 11.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.7x.
Dow Inc.'s return on equity (ROE) is -14.8%. The historical average is 8.6%.
Based on historical data, Dow Inc. is trading at a P/E of -7.8x. Compare with industry peers and growth rates for a complete picture.
Dow Inc.'s current dividend yield is 7.31%.
Dow Inc. has 6.0% gross margin and 0.7% operating margin.
Dow Inc.'s Debt/EBITDA ratio is 6.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Cyclical trough and legal overhang
Metrics are mathematically derived from official filings.
Margin Recovery from Cyclical Trough
According to recent SEC filings, Dow's gross margin rebounded to 17.9% in Q2 2026 from 5.4% a year earlier, yet TTM gross margin remains a thin 5.99%, indicating persistent spread compression.
The sharp sequential improvement in gross margin suggests that feedstock cost advantages and pricing power are returning, but the TTM figures reveal that the company is still operating well below mid-cycle profitability. Operating margin swung from -11.0% in Q4 2025 to 7.3% in Q2 2026, demonstrating extreme operating leverage, yet the TTM operating margin of 0.65% underscores the fragility of the recovery. Investors should monitor whether this margin expansion is sustainable or merely a temporary reprieve from a deep trough.
Returns Recovering from Negative Territory
Based on reported figures, Dow's ROIC turned positive at 1.8% in Q2 2026 after four consecutive negative quarters, but the TTM ROIC remains near zero, reflecting a business still earning below its cost of capital.
The improvement in ROIC from -2.3% in Q4 2025 to 1.8% in Q2 2026 is encouraging, but it remains far below the levels seen in early 2024 (1.5-1.6%). ROE also swung to 3.4% in Q2 2026 from -8.4% in Q4 2025, yet the TTM ROE is -14.8%, indicating that the company is still destroying shareholder value on a trailing basis. The driver of this recovery appears to be margin expansion rather than asset efficiency, as asset turnover has remained stable around 0.17-0.20, suggesting that returns are highly sensitive to the commodity cycle.
Working Capital Stretch Signals Caution
As reported in quarterly filings, Dow's cash conversion cycle extended to 86 days in Q1 2026 from 72 days in Q4 2024, driven by rising DSO and DIO, indicating slower cash recovery from customers and inventory buildup.
The CCC has been on an upward trend, with DSO rising from 58 days in Q1 2024 to 65 days in Q1 2026, and DIO increasing from 60 to 66 days over the same period. This suggests that Dow is facing longer payment cycles from customers and holding more inventory, which may reflect weakening demand or deliberate stockpiling ahead of expected price increases. The lack of DPO data in Q2 2026 makes it difficult to assess supplier leverage, but the overall trend points to increased working capital absorption, which could pressure cash flow if the cycle does not turn.
Debt Metrics Distorted by Cyclical Earnings
Based on Dow's latest balance sheet, the D/E ratio improved to 0.80 in Q2 2026 from 1.12 in Q4 2025, but D/EBITDA spiked to 13.49, reflecting depressed EBITDA rather than a sudden debt surge.
The dramatic fluctuation in D/EBITDA from 13.49 in Q2 2026 to 1308.60 in Q1 2026 (when EBITDA was near zero) highlights the danger of using this metric during a cyclical trough. Interest coverage of 5.15 in Q2 2026 is a marked improvement from negative readings in prior quarters, but it remains below the 4.18 level seen in Q2 2024, suggesting that debt service is still less comfortable than a year ago. The reported D/E of 1.12% in the initial snapshot appears to be a data error, as the quarterly data shows D/E around 0.80-1.17, which is more consistent with industry norms.
Liquidity Buffer Strengthens but Relies on Cash
According to recent financial statements, Dow's current ratio jumped to 11.07 in Q2 2026 from 1.80 in Q1 2024, but this is largely due to a $4.0B cash balance, masking underlying working capital strain.
The current ratio's surge is primarily driven by a significant increase in cash, which may be a result of debt issuance or asset sales rather than operational improvement. The quick ratio of 7.24 in Q2 2026 suggests that inventory is not a major liquidity concern, but the persistent negative TTM operating cash flow indicates that the company is still burning cash on an annual basis. If the cash balance is not sustainable, the liquidity position could deteriorate quickly, especially if the cyclical recovery stalls.
Misapplied EV/EBITDA in Cyclical Trough
The most commonly misapplied ratio for Dow is EV/EBITDA, which currently stands at 12.17 on a TTM basis but is distorted by trough earnings; forward EV/EBITDA of 6.94 better reflects mid-cycle potential.
Using TTM EV/EBITDA for a highly cyclical company like Dow can lead to misleading conclusions, as EBITDA is currently depressed near the bottom of the cycle. The forward multiple of 6.94 suggests that the market is pricing in a recovery, but investors should normalize EBITDA over a full cycle or use mid-cycle earnings power to assess valuation. A more appropriate metric would be EV/EBIT or EV/(normalized EBITDA), which smooths out the volatility and provides a clearer picture of the company's earning power.