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Downer EDI Limited (DOW) Fair Value & Analysis

Industrials · AU · Market cap A$5.2B

DE Downer EDI Limited DOW · AU
PriceA$8.09
Fair ValueA$4.35
Upside-46.2%
Quality91/100
Evidence: High Range A$3.26 – A$5.69

Fair value as of: Jun 24, 2026

From 25 valuation models · updated 5 days ago

Share price +2.5% over the past month.

Price vs Fair Value (12 months)

A$8.41 A$5.99 Fair Value A$4.35 Jun 2025 Jun 2026

12‑month range A$5.99 – A$8.41 · fair‑value band A$3.26 – A$5.69 · the A$8.09 price screens above the A$4.35 fair value. As of Jun 24, 2026.

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Analysis

Downer EDI Limited (DOW) currently trades at A$8.09, while our model-based Fair Value estimate is A$4.35 — implying the stock looks roughly 46.2% overvalued today. We read business quality at 91/100 (high 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: high).

Over the trailing twelve months, Downer EDI Limited generated revenue of A$10.1B at a net margin of 1.6%. Revenue declined 7.1% year over year. It earns a return on equity of 7.8%. Net debt stands at A$705M. Fundamentals as of Jun 24, 2026

Key figures & financial health

Revenue (TTM) A$10.1B
Revenue growth (YoY) -7.1%
Net margin 1.6%
Return on equity 7.8%
Free cash flow A$440M FY2025
P/E ratio 32.9
More key figures
Operating margin 3.8%
EPS (TTM) A$0.2400
Dividend yield 3.5%
EPS growth (YoY) +35.7%
Net debt A$705M FY2025

Figures from reported company fundamentals (EODHD) · as of Jun 24, 2026. TTM = trailing twelve months.

About the company

Downer EDI Limited operates as an integrated facilities management services provider in Australia, New Zealand, and internationally. It operates through Transport; Energy & Utilities; and Facilities segments. The Transport segment offers road network management; routine road maintenance; asset management systems; spray sealing; asphalt laying; landfill diversion solutions; rollingstock to infrastructure services; and building and construction solutions, such as signalling, track and station works, bridges, airports, and roads. This segment also manufacturing and supply of bitumen-based and asphalt products; and designs and manufactures life-support services comprising fleet maintenance, operations, and comprehensive overhaul of assets. The Energy & Utilities segment operates power, gas, water, telecommunications, industrial, resources, and energy businesses, which includes planning, designing, constructing, operating, maintaining, managing, and decommissioning of power, gas network …

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Downer EDI Limited reported revenue of A$10.5B in FY2025 versus A$11.5B in FY2021, a compound −2.3%/yr. Reported net income was A$137M in FY2025, compounding −6.9%/yr from FY2021.

Revenue −2.3%/yr
FY21 A$11.5B
FY22 A$10.9B
FY23 A$11.6B
FY24 A$11.0B
FY25 A$10.5B
Net income −6.9%/yr
FY21 A$182M
FY22 A$152M
FY23 −A$386M
FY24 A$69.1M
FY25 A$137M

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Frequently asked questions

Is Downer EDI Limited (DOW) undervalued?
As of Jun 24, 2026, our model estimates a fair value of A$4.35 versus a price of A$8.09 — about −46% (overvalued). Model-based estimate, not financial advice.
What is the fair value of DOW?
Our 21-model fair value for Downer EDI Limited is A$4.35 (as of Jun 24, 2026), built from audited fundamentals. The current price is A$8.09.
What is the quality score of DOW?
Downer EDI Limited has a Quality Score of 91/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Downer EDI Limited (DOW)?
Downer EDI Limited reported trailing-twelve-month revenue of about A$10.1B (latest available figure, as of Jun 24, 2026).
What is the net profit margin of DOW?
The net profit margin of Downer EDI Limited is about 1.6%, meaning it keeps roughly 1.6% of revenue as net income. Based on the latest reported figures.
Does Downer EDI Limited pay a dividend?
Downer EDI Limited currently shows a dividend yield of about 3.45% relative to its recent price (as of Jun 24, 2026).

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.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.