Is DNOW (DNOW) Pricing Reflect Future Cash Flows After Recent Share Price Performance

Simply Wall St.01-17

If you are wondering whether DNOW's current share price gives you enough value for the risk you are taking, this article walks through what the numbers are actually saying. The stock last closed at US...

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The stock last closed at US...</p>\n\n<a href=\"https://simplywall.st/stocks/us/capital-goods/nyse-dnow/dnow/news/is-dnow-dnow-pricing-reflect-future-cash-flows-after-recent\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is DNOW (DNOW) Pricing Reflect Future Cash Flows After Recent Share Price Performance</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs DNOW (DNOW) Pricing Reflect Future Cash Flows After Recent Share Price Performance\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-17 00:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/capital-goods/nyse-dnow/dnow/news/is-dnow-dnow-pricing-reflect-future-cash-flows-after-recent><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether DNOW's current share price gives you enough value for the risk you are taking, this article walks through what the numbers are actually saying. The stock last closed at US...</p>\n\n<a href=\"https://simplywall.st/stocks/us/capital-goods/nyse-dnow/dnow/news/is-dnow-dnow-pricing-reflect-future-cash-flows-after-recent\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00B66KJ199.SGD","symbol_name":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY  \" A\" (SGD) ACC","start_time":0,"source_url":"https://simplywall.st/stocks/us/capital-goods/nyse-dnow/dnow/news/is-dnow-dnow-pricing-reflect-future-cash-flows-after-recent","article_id":"2604402918","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/3081000-choice2-main-header/1585186749644"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/capital-goods/nyse-dnow/dnow/news/is-dnow-dnow-pricing-reflect-future-cash-flows-after-recent","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2604402918","pubTimestamp":1768581353,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether DNOW's current share price gives you enough value for the risk you are taking, this article walks through what the numbers are actually saying.\nThe stock last closed at US$14.34, with returns of 4.7% over 7 days, 4.1% over 30 days, 7.3% year to date, 5.7% over 1 year, 16.3% over 3 years and 76.2% over 5 years, which many investors use as a starting point when thinking about potential value or shifting risk perceptions.\nRecent attention on DNOW has been shaped by...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00B66KJ199.SGD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY  \" A\" (SGD) ACC","LU1815336091.USD":"THREADNEEDLE (LUX) GLOBAL SMALLER COMPANIES \"AUP\" (USD) INC","IE0031619046.USD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY \"A\" (USD) INC","LU0757428866.USD":"THREADNEEDLE (LUX) GLOBAL SMALLER COMPANIES \"AE\" (USD) ACC","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","IE00B7SZL793.SGD":"Legg Mason Royce - US Small Cap Opportunity A Acc SGD-H","IE00B19Z4B17.USD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY \"A\" (USD) ACC","DNOW":"NOW Inc.","BK4104":"贸易公司与经销商"},"translate_title":"DNOW(DNOW)定价是否反映近期股价表现后的未来现金流","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DCF":1,"DNOW":1.5},"content_text":"If you are wondering whether DNOW's current share price gives you enough value for the risk you are taking, this article walks through what the numbers are actually saying. The stock last closed at US$14.34, with returns of 4.7% over 7 days, 4.1% over 30 days, 7.3% year to date, 5.7% over 1 year, 16.3% over 3 years and 76.2% over 5 years, which many investors use as a starting point when thinking about potential value or shifting risk perceptions. Recent attention on DNOW has been shaped by ongoing interest in the capital goods sector and how distributors of energy and industrial products fit into broader supply chain themes. This backdrop helps frame how investors interpret DNOW's share price moves and what they might be paying for its role in that space. On our valuation checks, DNOW scores a 3 out of 6, which suggests some areas look attractively priced and others less so. We will walk through different valuation approaches next, then finish with a way of looking at value that can give you a fuller story than the usual ratios and models alone.  Find out why DNOW's 5.7% return over the last year is lagging behind its peers. AdvertisementApproach 1: DNOW Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model estimates what a company might be worth by projecting its future cash flows and discounting them back to today’s value. It focuses on what cash the business could generate for shareholders over time, expressed in today’s dollars. For DNOW, the latest twelve month Free Cash Flow is about $179.6 million. Using a 2 Stage Free Cash Flow to Equity model that relies on analyst inputs and then extends them, projections run out to at least 2035. For example, projected Free Cash Flow in 2029 is $320.7 million, with later years such as 2035 extrapolated by Simply Wall St rather than based on direct analyst forecasts. When all those projected cash flows are discounted back, the model arrives at an estimated intrinsic value of about $33.97 per share. Compared with the recent share price of $14.34, the DCF output suggests DNOW trades at a 57.8% discount, indicating a wide gap between the model’s estimate and the current market price. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests DNOW is undervalued by 57.8%. Track this in your watchlist or portfolio, or discover 868 more undervalued stocks based on cash flows. DNOW Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for DNOW. Approach 2: DNOW Price vs Earnings For a profitable company like DNOW, the P/E ratio is a useful way to think about what you are paying for each dollar of current earnings. It lets you compare the share price to earnings in a straightforward way, which many investors find easier to interpret than cash flow models. What counts as a “normal” P/E often reflects how the market sees a company’s growth potential and risk. Higher expected growth or lower perceived risk can justify a higher P/E, while slower growth or higher risk usually lines up with a lower multiple. DNOW currently trades on a P/E of 28.63x. That sits above the Trade Distributors industry average of about 22.58x and the peer average of around 18.60x, so the stock is pricing in more optimistic expectations than those simple benchmarks alone. Simply Wall St also calculates a Fair Ratio of 30.71x, which is the P/E it would expect for DNOW given factors such as its earnings profile, industry, profit margin, market cap and risk characteristics. This Fair Ratio can be more informative than a plain industry or peer comparison because it is tailored to DNOW rather than treating all companies as alike. With the current P/E of 28.63x sitting below the Fair Ratio of 30.71x, the multiple points to DNOW being undervalued on this basis. Result: UNDERVALUED NYSE:DNOW P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1442 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your DNOW Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce Narratives. With Narratives you set out your story for DNOW, link it to your own forecasts for revenue, earnings and margins, and see what fair value that implies. All of this happens inside Simply Wall St’s Community page that millions of investors use to compare their view of fair value with the current price, react quickly as Narratives refresh when new news or earnings arrive, and see how one investor might build an optimistic DNOW Narrative around expansion into midstream markets, energy evolution sales, digital initiatives and international focus that supports a fair value of US$17. Another investor might use the same information on shrinking margins, competition and project risk to justify a lower fair value and a very different conclusion about what the same share price means. Do you think there's more to the story for DNOW? Head over to our Community to see what others are saying! NYSE:DNOW 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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