Should You Buy Dow Inc (DOW) Stock Monday?

Dow Inc (DOW) receives a strong valuation ranking of 83 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. DOW has a better value than 83% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

DOW gets a 83 Valuation Rank today. Find out what this means to you and get the rest of the rankings on DOW!

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Metrics Analysis

DOW has a trailing twelve month Price to Earnings (PE) ratio of 31.03. The historical average of roughly 15 shows a poor value for DOW stock as investors are paying higher share prices relative to the company's earnings. DOW's high trailing PE ratio shows that the firm has been trading above its fair market value recently. Its trailing 12-month earnings per share (EPS) of 1.83 does not justify the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings. DOW has a 12 month forward PE to Growth (PEG) ratio of 0.79. Markets are overvaluing DOW in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 1.83's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.

Summary

DOW' has a strong valuation at its current share price on account of a undervalued PEG ratio despite strong growth. DOW's PE and PEG are better than the market average leading to a above average valuation score. Click Here to get the full Report on Dow Inc (DOW) stock.