Downer EDI Limited

ASX:DOW Stock Report

Market Cap: AU$4.9b

Downer EDI Valuation

Is DOW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DOW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: DOW (A$7.45) is trading below our estimate of future cash flow value (A$38.44)

Significantly Below Future Cash Flow Value: DOW is trading below future cash flow value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DOW?

Key metric: As DOW is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DOW. This is calculated by dividing DOW's market cap by their current earnings.
What is DOW's PE Ratio?
PE Ratio32.9x
EarningsAU$148.40m
Market CapAU$4.89b

Price to Earnings Ratio vs Peers

How does DOW's PE Ratio compare to its peers?

The above table shows the PE ratio for DOW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.1x
MAD Mader Group
23.1x12.70%AU$1.4b
BXB Brambles
19.9x6.54%AU$26.0b
SUG Sugar Terminals
9.3xn/aAU$291.6m
CWY Cleanaway Waste Management
48x22.58%AU$5.8b
DOW Downer EDI
32.9x19.17%AU$4.9b

Price-To-Earnings vs Peers: DOW is expensive based on its Price-To-Earnings Ratio (32.9x) compared to the peer average (25.1x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does DOW's PE Ratio compare vs other companies in the Global Commercial Services Industry?

19 CompaniesPrice / EarningsEstimated GrowthMarket Cap
DOW 32.9xIndustry Avg. 15.9xNo. of Companies84PE01224364860+
19 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DOW is expensive based on its Price-To-Earnings Ratio (32.9x) compared to the Global Commercial Services industry average (15.9x).

Price to Earnings Ratio vs Fair Ratio

What is DOW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DOW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.9x
Fair PE Ratio24.5x

Price-To-Earnings vs Fair Ratio: DOW is expensive based on its Price-To-Earnings Ratio (32.9x) compared to the estimated Fair Price-To-Earnings Ratio (24.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DOW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$7.45
AU$8.33
+11.81%
7.81%AU$9.20AU$6.90n/a10
Aug ’27AU$7.78
AU$8.32
+6.94%
8.09%AU$9.20AU$6.80n/a10
Jul ’27AU$7.98
AU$8.30
+4.01%
7.93%AU$9.20AU$6.80n/a10
Jun ’27AU$8.15
AU$8.23
+0.98%
8.75%AU$9.20AU$6.80n/a10
May ’27AU$7.42
AU$8.24
+11.05%
8.86%AU$9.20AU$6.80n/a10
Apr ’27AU$7.80
AU$8.24
+5.64%
8.86%AU$9.20AU$6.80n/a10
Mar ’27AU$8.59
AU$8.19
-4.67%
9.18%AU$9.20AU$6.80n/a9
Feb ’27AU$8.05
AU$7.91
-1.70%
9.11%AU$8.85AU$6.70n/a10
Jan ’27AU$7.95
AU$7.70
-3.14%
9.30%AU$8.50AU$6.30n/a9
Dec ’26AU$7.87
AU$7.70
-2.16%
9.30%AU$8.50AU$6.30n/a9
Nov ’26AU$7.73
AU$7.28
-5.89%
7.56%AU$7.90AU$6.30n/a8
Oct ’26AU$7.40
AU$7.28
-1.69%
7.56%AU$7.90AU$6.30n/a8
Sep ’26AU$7.11
AU$6.82
-4.13%
12.66%AU$7.75AU$5.40n/a9
Aug ’26AU$6.91
AU$6.18
-10.56%
9.29%AU$7.00AU$5.40AU$7.789
Jul ’26AU$6.30
AU$5.82
-7.62%
7.42%AU$6.75AU$5.40AU$7.989
Jun ’26AU$6.08
AU$5.70
-6.29%
4.45%AU$6.30AU$5.40AU$8.159
May ’26AU$5.78
AU$5.70
-1.42%
4.45%AU$6.30AU$5.40AU$7.429
Apr ’26AU$5.52
AU$5.70
+3.22%
4.45%AU$6.30AU$5.40AU$7.809
Mar ’26AU$5.53
AU$5.70
+3.03%
4.45%AU$6.30AU$5.40AU$8.599
Feb ’26AU$5.73
AU$5.61
-2.05%
5.89%AU$6.15AU$5.00AU$8.058
Jan ’26AU$5.25
AU$5.57
+6.00%
6.00%AU$6.15AU$5.00AU$7.958
Dec ’25AU$5.75
AU$5.55
-3.54%
5.47%AU$6.00AU$5.00AU$7.878
Nov ’25AU$5.51
AU$5.55
+0.66%
5.47%AU$6.00AU$5.00AU$7.738
Oct ’25AU$5.49
AU$5.48
-0.11%
4.56%AU$5.77AU$5.00AU$7.408
Sep ’25AU$5.59
AU$5.20
-6.96%
7.66%AU$5.75AU$4.55AU$7.119
Aug ’25AU$5.01
AU$4.86
-2.97%
6.80%AU$5.75AU$4.55AU$6.919
AU$8.33
Fair Value
10.6% undervalued intrinsic discount
10
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/08/19 17:25
End of Day Share Price 2026/08/19 00:00
Earnings2025/12/31
Annual Earnings2025/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Downer EDI Limited is covered by 21 analysts. 8 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Megan Kirby-LewisBarrenjoey Markets Pty Limited
Cameron NeedhamBofA Global Research
Shaurya VisenBofA Global Research