DNOW Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair 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 DNOW * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DNOW * (MX$238) is trading below our estimate of fair value (MX$431.38)

Significantly Below Fair Value: DNOW * is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for DNOW *. This is calculated by dividing DNOW *'s market cap by their current earnings.
What is DNOW *'s PE Ratio?
PE Ratio	6.1x
Earnings	US$223.00m
Market Cap	US$1.35b

DNOW * key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.5x
Enterprise Value/EBITDA	7.3x
PEG Ratio	-0.3x

Price to Earnings Ratio vs Peers

How does DNOW *'s PE Ratio compare to its peers?

The above table shows the PE ratio for DNOW * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	40.7x
LAMOSA * Grupo Lamosa. de	71x	38.6%	Mex$40.5b
CERAMIC B Internacional de Cerámica. de	50.1x	n/a	Mex$13.5b
ELEMAT * Elementia Materiales S. A. B. de C. V	16x	n/a	Mex$11.5b
AGUA * Grupo Rotoplas. de	25.8x	16.7%	Mex$9.3b
DNOW * DNOW	6.1x	-18.9%	Mex$1.4b

Price-To-Earnings vs Peers: DNOW * is good value based on its Price-To-Earnings Ratio (6.1x) compared to the peer average (31.3x).

Price to Earnings Ratio vs Industry

How does DNOW *'s PE Ratio compare vs other companies in the Global Trade Distributors Industry?

24 Companies	Price / Earnings	Estimated Growth	Market Cap

24 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: DNOW * is good value based on its Price-To-Earnings Ratio (6.1x) compared to the Global Trade Distributors industry average (14.3x).

Price to Earnings Ratio vs Fair Ratio

What is DNOW *'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.

DNOW * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate DNOW *'s Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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