Is Dow, Inc. overvalued or undervalued?

As of 24 July 2025, the valuation grade for Dow, Inc. has moved from very attractive to risky, indicating a significant shift in perception. The company is currently considered overvalued, with a P/E ratio of 32, which is substantially higher than its peer LyondellBasell Industries NV, which has a P/E of 17.16. Additionally, Dow's EV to EBITDA stands at 24.09, while LyondellBasell's is 9.66, further highlighting the disparity in valuation metrics.
In comparison to its peers, Dow's Price to Book Value of 1.24 and an EV to Sales ratio of 0.84 suggest that it is not positioned favorably within the specialty chemicals industry. The recent stock performance has been poor, with a year-to-date return of -39.92% compared to a 12.22% return for the S&P 500, and a staggering -53.31% over the past year against the index's 17.14% gain. This underperformance reinforces the view that Dow, Inc. is overvalued in the current market environment.