Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 3.06%, lower than industry average of 6.52%.

Growth Trajectory

Profitability

In the growth phase company makes 5.12% profit on every dollar of sales, lower than industry average of 5.43%.

Profitability Trajectory

Risk Profile

Investors expect at least 7.20% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
23.23B USD
Equity Value
7.03B USD
FCF Yield
64.42%
Average ROIC
5.86%
Cost of Capital
7.79%
P/E Ratio
20.35x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues41.82B USD42.96B USD
Operating Income or EBIT1.11B USD2.42B USD
Interest Expense840M USD811M USD
Book Value Of Equity17.23B USD17.36B USD
Book Value Of Debt18.10B USD17.64B USD
Cash and Marketable Securities2.40B USD2.19B USD
Number of Shares Outstanding708.84M--
Minority interests496M USD0 USD
Current Stock Price24.02 USD--
Effective Tax Rate25.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-9.19%
-2.67%Company
vs
6.52%Industry
Below Industry
Operating Margin
-2.77%
2.66%Company
vs
5.43%Industry
Below Industry
Dow Inc. faces challenges in both growth and profitability compared to industry peers, which may indicate competitive pressures or operational inefficiencies.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.82%
Reinvestment Rate
52.09%
Terminal value represents 73% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 16.92B USD Add
Present Value (Cash Flow Over Next 10 Years) 6.30B USD Add
Value of Operating Assets 23.23B USD Sub-total
Debt 18.10B USD Subtract
Minority Interests 496.00M USD Subtract
Cash 2.39B USD Add
Value of Equity 7.03B USD Sub-total
Number of Shares 708.84M shares Divisor
Estimated Value per Share (Fair Value) 9.92 USD Total
Current Market Price 24.01 USD Reference

Financial Projections

Total FCF Present Value
6.30B USD
Avg Revenue Growth
3.32%
Avg Operating Margin
5.66%
Avg ROIC
5.86%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue43.13B USD44.45B USD45.81B USD47.22B USD48.66B USD50.30B USD52.15B USD54.23B USD56.56B USD59.16B USD61.88B USD
Growth Rate 3.15% 3.06% 3.06% 3.06% 3.06% 3.36% 3.67% 3.98% 4.29% 4.59% 4.59%
PROFITABILITY
Operating Income1.15B USD1.91B USD2.34B USD2.80B USD3.28B USD3.39B USD3.52B USD3.66B USD3.82B USD3.99B USD4.18B USD
Operating Margin 2.66% 4.30% 5.11% 5.93% 6.75% 6.75% 6.75% 6.75% 6.75% 6.75% 6.75%
EBIT (1-tax)862.59M USD1.43B USD1.75B USD2.10B USD2.46B USD2.54B USD2.64B USD2.74B USD2.86B USD2.99B USD3.13B USD
CASH FLOW
Reinvestment758.62M USD781.85M USD805.78M USD830.45M USD941.90M USD1.41B USD1.58B USD1.77B USD1.98B USD2.07B USD1.63B USD
Free Cash Flow103.96M USD652.47M USD953.45M USD1.27B USD1.52B USD1.13B USD1.05B USD970.10M USD878.84M USD919.27M USD1.50B USD
Terminal Value--------------------35.50B USD
Present Value96.98M USD567.75M USD773.93M USD963.33M USD1.07B USD746.36M USD642.83M USD546.17M USD456.01M USD438.29M USD—
EFFICIENCY
ROIC 2.61% 4.25% 5.10% 5.95% 6.82% 6.87% 6.86% 6.86% 6.85% 6.84% 8.82%
Cost of Capital 7.20% 7.20% 7.20% 7.20% 7.20% 7.52% 7.85% 8.17% 8.50% 8.82% 8.83%
Sales/Capital 1.74x 1.74x 1.74x 1.74x 1.74x 1.30x 1.30x 1.30x 1.30x 1.30x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)