DOWNEUTRAL

DOW EV/EBITDA Analysis

9.8x

Updated 57h ago·SEC filings & market data

Key Takeaway

The EV/EBITDA multiple compares a company's enterprise value (market cap plus debt minus cash) to its earnings before interest, taxes, depreciation, and amortization, and at 10.2x it signals how many years of current EBITDA would cover the firm's total value.

Sector Performance

31th percentile

DOW

9.8x

Sector Median

13.6x

Sector Avg

-30.9x

Prior Period

10.2x(Aug 2026)

↑ Improving
📊

Deep Analysis

The EV/EBITDA multiple compares a company's enterprise value (market cap plus debt minus cash) to its earnings before interest, taxes, depreciation, and amortization, and at 10.2x it signals how many years of current EBITDA would cover the firm's total value.

This sits below the sector median of 13.6x, placing DOW in the 32nd percentile among peers, meaning about two-thirds of comparable companies trade at higher multiples. The year-over-year change is not available, but quarter-over-quarter the metric rose 7.7%, from 9.5x to 10.2x, so the short-term trend is upward even though an 8-quarter history is unavailable. A below-median valuation with a recent rise suggests the stock is becoming less cheap relative to peers, which could trim the margin of safety for new buyers but still leaves room versus the sector. This combination points to moderate valuation risk rather than a stretched entry point, as the level remains reasonable while momentum has shifted higher. The metric supports the overall NEUTRAL verdict: it neither confirms a clear bargain nor flags an overvaluation, aligning with a balanced view.

Frequently Asked Questions

What does the EV/EBITDA tell investors about DOW?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are DOW's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: SMTC (76.6x), SHOP (80.2x), OKTA (83.5x), TEAM (101.4x), STEM (102.7x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

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DOW

9.8x

Sector Median

13.6x

Sector Avg

-30.9x

How DOW's EV/EBITDA compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.