Is DNOW, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for DNOW, Inc. has moved from attractive to fair. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 16, a Price to Book Value of 1.37, and an EV to EBITDA ratio of 7.85. In comparison to peers, Core & Main, Inc. has a higher P/E ratio of 29.46 and an EV to EBITDA of 16.78, indicating that DNOW is relatively more attractively priced within its industry.
Despite the fair valuation, DNOW's recent performance shows a mixed picture against the S&P 500; while it has achieved a 5-year return of 160.26%, it lags behind the S&P 500's 227.77% over the same period. This suggests that while the stock may be fairly valued, its growth potential compared to the broader market could be a concern for investors.