Question 1

What is Dow's P/FCF ratio?

Accepted Answer

Dow (DOW) P/FCF ratio is 38.1× as of February 3, 2025. The ratio is calculated by dividing market capitalisation by trailing twelve-month free cash flow, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/FCF ratio calculated?

Accepted Answer

P/FCF = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Free Cash Flow, where Free Cash Flow = Operating Cash Flow − Capital Expenditures. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/FCF ratio?

Accepted Answer

The price-to-free-cash-flow (P/FCF) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) free cash flow. It is calculated as market cap ÷ TTM free cash flow, where free cash flow = operating cash flow − capital expenditures. Because FCF cannot be inflated by non-cash accounting items, P/FCF is often considered a cleaner measure of "earnings-power valuation" than P/E — especially for capital-intensive businesses where depreciation diverges from real cash outflows.

Question 4

What is a good P/FCF ratio for Dow?

Accepted Answer

Mature companies that consistently convert profit into cash often trade at 15–25× P/FCF; capital-intensive businesses with lumpy capex typically trade lower. Compare against sector peers and against the company's own multi-year average — single-year P/FCF can be distorted by working-capital swings. For Dow specifically, the relevant sector benchmark is the current sector median of 25.9×.

Question 5

Is Dow's P/FCF ratio high or low?

Accepted Answer

Dow's P/FCF ratio of 38.1× is above its own 5-year average of 13.9× and above the sector median of 25.9×. That places the current reading at the 93th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is Dow's historical P/FCF ratio range?

Accepted Answer

In the available daily series, Dow (DOW) P/FCF ratio has ranged from a low of 5.0× in 2022 to a high of 51.0× in 2024. The 5-year average is 13.9× and the 5-year median is 9.9×.

Question 7

What was Dow's P/FCF ratio in 2023?

Accepted Answer

Dow (DOW) P/FCF ratio at the end of 2023 was 14.1×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month free cash flow figure available at that date.

Question 8

Why does Dow's P/FCF ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (free cash flow). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$16.8B	-$2.61B	—	—	Dec 31, 2025
2024	$28.2B	-$151M	—	—	Dec 31, 2024
2023	$38.6B	$2.74B	14.1×	+7.5×	Dec 31, 2023
2022	$35.7B	$5.42B	6.6×	-2.1×	Dec 31, 2022
2021	$41.9B	$4.79B	8.7×	+0.2×	Dec 31, 2021
2020	$41.2B	$4.84B	8.5×	-1.7×	Dec 31, 2020
2019	$40.5B	$3.96B	10.2×	-18.2×	Dec 31, 2019
2018	$37.3B	$1.31B	28.5×	—	Dec 31, 2018


Nucor (NUE)	74.2×
Air Products and Chemicals (APD)	58.4×
International Flavors & Fragrances (IFF)	46.7×
Linde (LIN)	45.1×
Ecolab (ECL)	40.1×
Albemarle (ALB)	36.7×
International Paper (IP)	35.2×
Steel Dynamics (STLD)	34.7×
Martin Marietta Materials (MLM)	34.3×
Vulcan Materials (VMC)	32.2×
Corteva (CTVA)	27.5×
Sherwin-Williams (SHW)	27.1×
H.B. Fuller (FUL)	24.8×
CRH (CRH)	24.4×
Agnico Eagle Mines (AEM)	22.3×
PPG Industries (PPG)	19.5×
Eastman Chemical (EMN)	17.5×
DuPont de Nemours (DD)	17.0×
Avient (AVNT)	16.2×
Freeport-McMoRan (FCX)	13.6×
CF Industries Holdings (CF)	12.4×
Builders FirstSource (BLDR)	10.5×
Newmont (NEM)	9.6×
LyondellBasell (LYB)	9.3×
Ashland (ASH)	7.6×

P/FCF Ratio for Dow (DOW) 2018-2026

P/FCF Ratio daily chart for Dow (DOW)

Historical P/FCF Ratio for Dow (DOW) from 2018 to 2025

About P/FCF Ratio at Dow (DOW)

Dow P/FCF Ratio by Year

Dow P/FCF Ratio 2023: 14.1×

Dow P/FCF Ratio 2022: 6.6×

Dow P/FCF Ratio 2021: 8.7×

Dow P/FCF Ratio 2020: 8.5×

Dow P/FCF Ratio 2019: 10.2×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

Dow (DOW) Key Financials