Latest Ratios: P/E Ratio -7.4x · EV/EBITDA 11.5x · 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 | $19.7B | $16.6B | $28.3B | $38.9B | $36.6B | $42.5B | $41.2B | $40.6B | — | — |
| Enterprise Value | $35.4B | $32.4B | $43.8B | $52.3B | $49.4B | $55.6B | $55.1B | $57.4B | — | — |
| P/E Ratio → | -7.41 | — | 25.56 | 66.88 | 8.02 | 6.77 | 33.84 | — | — | — |
| P/S Ratio | 0.49 | 0.42 | 0.66 | 0.87 | 0.64 | 0.77 | 1.07 | 0.95 | — | — |
| P/B Ratio | 1.11 | 0.95 | 1.59 | 2.03 | 1.72 | 2.27 | 3.17 | 2.88 | — | — |
| P/FCF | — | — | — | 14.30 | 6.75 | 9.07 | 8.51 | 10.26 | — | — |
| P/OCF | 19.06 | 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 | 11.46 | 10.48 | 8.82 | 10.21 | 6.10 | 5.19 | 10.68 | 9.16 | — | — |
| EV / EBIT | 136.34 | — | 18.55 | 37.60 | 7.33 | 6.30 | 18.70 | — | — | — |
| EV / FCF | — | — | — | 19.25 | 9.12 | 11.87 | 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 | 2.81 | 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 | 7.7% | 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% | 11.0% | 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 | 7.7% | 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 |
Cyclical Margin Compression
According to current market data, Dow trades at a negative TTM P/E of -7.87, while its forward P/E of 9.08 suggests that investors are pricing in a recovery from current depressed earnings levels rather than relying on the company's recent, highly volatile financial performance.
The divergence between the negative trailing earnings and the forward-looking multiple indicates that the market is valuing Dow on mid-cycle earnings potential rather than current operational reality. Investors should monitor whether this valuation floor holds, as the 7.2% dividend yield may be perceived as a signal of management's confidence in a turnaround despite the current lack of profitability.
Based on reported financial statements, Dow's ROIC has trended downward from 1.6% in 2024Q1 to -0.1% in 2026Q1, illustrating a significant decay in the company's ability to generate returns on its invested capital during the current prolonged industrial downturn and sector-wide overcapacity.
The collapse in ROIC suggests that the company's massive capital base is currently failing to produce adequate returns, likely due to the combination of high fixed-cost absorption issues and compressed spreads. This trend warrants further investigation into whether the company's recent capital allocation toward decarbonization projects will eventually drive a return to historical efficiency levels or if it will continue to weigh on capital returns.
As indicated by the quarterly data, Dow's cash conversion cycle has lengthened from 72 days in 2024Q1 to 86 days in 2026Q1, suggesting that the company is facing increasing difficulty in managing its inventory and receivables amidst a period of contracting global demand.
The rise in the CCC reflects a deterioration in working capital efficiency, as the company appears to be holding inventory longer while struggling to accelerate cash collection from customers. This trend may indicate that Dow is losing pricing power and is forced to offer more lenient terms to maintain volume in a highly competitive, oversupplied market.
The P/E ratio is frequently misapplied to Dow's business model because it fails to account for the significant non-cash impairment charges and equity earnings from joint ventures that distort the company's reported net income during cyclical troughs, rendering the metric largely ineffective for valuation.
Analysts should instead prioritize EV/EBITDA or normalized free cash flow metrics to better capture the underlying cash-generating capacity of the firm's integrated assets. Relying on P/E in a commodity chemical context risks misinterpreting accounting volatility as a permanent impairment of the company's long-term earnings power.
Includes 30+ ratios · 9 years · Updated daily
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Quick answers to the most common questions about buying DOW stock.
Dow Inc.'s current P/E ratio is -7.4x. The historical average is 28.2x.
Dow Inc.'s current EV/EBITDA is 11.5x. 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 -7.4x. Compare with industry peers and growth rates for a complete picture.
Dow Inc.'s current dividend yield is 7.66%.
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.