DNOW Inc (DNOW) Fair Value & Analysis
Industrials · US · Market cap $2.4B
DNOW Inc
DNOW · US
Fair value as of: Jul 13, 2026
From 10 valuation models · updated 28 days ago
Share price +28.1% over the past month.
Below-average quality, and screening another 65% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case ($5.76). The favourable scenario is already priced in.
- Weak quality (30/100) and above fair value at the same time, the margin of safety is missing on both counts.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 13, 2026.
How to read this chart
60‑month range $7.01 – $17.59 · fair‑value band $3.32 – $5.76 · the $16.52 price screens above the $5.76 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 13, 2026.
Analysis
DNOW Inc (DNOW) currently trades at $16.52, while our model-based Fair Value estimate is $5.76, implying the stock looks roughly 65.1% overvalued today. The Quality Score stands at 30/100 (below-average quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).
Over the trailing twelve months, DNOW Inc generated revenue of $3.4B at a net margin of -4.5%. Revenue grew 97.5% year over year. It earns a return on equity of -9.4%. Net debt stands at $505M. Fundamentals as of Jul 13, 2026
Our scenario range runs from $3.32 (bear case) to $5.76 (bull case); at $16.52, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 4% below its 52-week high and 51% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -35% fair-value upside, at -65%, DNOW screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 10 models by family
Widest divergence: Growth DCF ($8.87) versus Multiples ($1.14). Highest evidence: Growth DCF (80).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 35 · Market factors (momentum, volatility) 54
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
DNOW Inc. distributes pipe, valves, fittings, and pumps in the United States, Canada, and internationally. The company offers flanges, gaskets, fasteners, electrical, instrumentation, artificial lift, and pumping systems, process and production equipment, production measurement technology, maintenance, repair and operating consumables (MRO), and general and …
Full company description
DNOW Inc. distributes pipe, valves, fittings, and pumps in the United States, Canada, and internationally. The company offers flanges, gaskets, fasteners, electrical, instrumentation, artificial lift, and pumping systems, process and production equipment, production measurement technology, maintenance, repair and operating consumables (MRO), and general and specialty products; personal protective equipment; and mill, tools, safety supplies, as well as vapor recovery systems under EcoVapo brand. It also offers original equipment manufacturer equipment, including pumps, generator sets, air compressors, dryers, blowers, mixers, and valves; modular oil and gas wellsite facility solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, the company provides supply chain and materials management; inventory planning; integrated supply; integrated supply; product quality programs; manufacturer assessments; multiple daily deliveries; volume purchasing; truck stocking; technical support; training; just-in-time delivery; and on-site commissioning; after-market field repair and rental mobile pumping units; inventory and zone store management; order consolidation; product tagging and system interfaces tailored; supplier specifications; engineering of control packages; valve inspection and repair; product expediting, tracking and tracing; documentation services; and pressure testing services. It serves customers in the upstream, midstream, and Gas Utilities sectors, as well as downstream and industrial including crude oil refining, petrochemical and chemical processing, general industrials, pharmaceutical, mining, water/wastewater treatment, data centers, liquefied natural gas, and terminals and renewable natural gas facilities. The company was formerly known as NOW Inc. and changed its name to DNOW Inc. in January 2024. DNOW Inc. was founded in 1862 and is headquartered in Houston, Texas.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
DNOW Inc reported revenue of $2.8B in FY2025 versus $1.6B in FY2021, a compound +14.7%/yr. Reported net income was −$89.0M in FY2025.
DNOW screens 65% overvalued. Compare with W.W. Grainger, Inc →
Earlier news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- DNOW Announces Second Quarter 2026 Earnings Conference Call
- DNOW Investor News: If You Have Suffered Losses in DNOW Inc. (NYSE: DNOW), You Are Encouraged to Contact The Rosen Law Firm About Your Right
- DNOW (DNOW): Buy, Sell, or Hold Post Q1 Earnings?
Peer Group
Industrial Distribution · 104 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Industrial Distribution median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Industrial Distribution stocks, each showing price versus our Fair Value estimate (as of Jul 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| W.W. Grainger, Inc GWW | $1,376 | $625.61 | -55% |
| Fastenal Company FAST | $45.49 | $20.64 | -55% |
| Ferguson Enterprises Inc FERG | $232.02 | $151.92 | -35% |
| WESCO International, Inc WCC | $326.71 | $213.01 | -35% |
| Watsco, Inc WSO | $385.16 | $268.10 | -30% |
| Toromont Industries Ltd TIH | C$232.22 | C$127.90 | -45% |
| Applied Industrial Technologies, Inc AIT | $329.35 | $191.65 | -42% |
| Finning International Inc FTT | C$102.50 | C$76.38 | -25% |
| Addtech AB ADDTB | kr 329.20 | kr 156.35 | -53% |
| Core & Main, Inc CNM | $44.66 | $49.47 | +11% |
Compare DNOW Inc with another stock
Price, fair value, quality and upside side by side.
Explore undervalued stocks
More undervalued Industrials stocks →
Frequently asked questions
Is DNOW Inc (DNOW) overvalued or undervalued?
What is the fair value of DNOW?
What is the quality score of DNOW?
What is the revenue of DNOW Inc (DNOW)?
What is the net profit margin of DNOW?
How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
Track DNOW Inc and try Pro for 14 days
One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.
Zero risk: nothing is ever charged. After 14 days you decide whether to stay.