Is DNOW, Inc. overvalued or undervalued?

As of 13 February 2025, the valuation grade for DNOW, Inc. has moved from attractive to fair. This suggests that the company is currently fairly valued. Key ratios indicate a P/E ratio of 16, an EV to EBITDA of 7.85, and a ROCE of 14.36%. In comparison, peer World Kinect Corp. has a P/E of 14.59 and an EV to EBITDA of 4.60, which highlights that DNOW, Inc. is slightly above its peer in terms of valuation metrics.
Overall, while DNOW, Inc. shows solid performance with a year-to-date return of 15.60% compared to the S&P 500's 2.44%, the current valuation suggests it is neither undervalued nor overvalued, but rather fairly valued in the market.