Dow Inc (DOW) is fairly valued and LSB Industries Inc (LXU) is undervalued.
Against our estimates of intrinsic value, LXU trades at the wider discount: a margin of safety of +45%, against +2% for DOW.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 6.6% (average of 2 methods) values the shares at $28.70; the price of $28.20 is 2% below that value, and 84% of that value comes from beyond year five.
Leak Score 21/100 on 7 of 12 signals
Discounting its cash flows at 7.1% (average of 3 methods) values the shares at $19.19; the price of $10.51 is 45% below that value, and 83% of that value comes from beyond year five.
Leak Score 56/100 on 10 of 12 signals
| Metric | DOW | LXU |
|---|---|---|
| Verdict | Fairly valued | Undervalued |
| Price | $28.20 | $10.51 |
| Intrinsic value | $28.70 | $19.19 |
| Margin of safety | +2% | +45% |
| Leak Score | 21/100 (7/12) | 56/100 (10/12) |
| Market cap | $20.4B | $757M |
| Revenue growth, 5 years | 0.7% | 11.9% |
| Operating margin | 3.6% | 9.5% |
| Net margin | -3.2% | 5.6% |
| Return on equity | -7.9% | 7.1% |
| Debt to equity | 1.22 | 0.91 |
| P/E | — | 20.7x |
| Forward P/E | 17.3x | 14.3x |
| P/B | 1.3x | 1.4x |
| Dividend yield | 4.9% | — |