David, Great analysis, 2 quick questions:

1. On $DOW – the current market cap as we speak is $40B, does that mean that it is under valued vs your valuation of $72B and is there a co-relation between NG prices and impact on DOW EBITDA that one can approximate?
2. On $DWDP (Dupont + Corteva), your equity valuation is $110 which includes Dupont & Corteva correct? th current market cap is $72B which trades nearly at a 35% discount is my understanding correct?

Based on what i read, both are relatively undervalued BUT $DOW (New) has challenges relating to market cycle and also dependent on feedstock prices, $DWDP is a better bet with a looming spin off ? Appreciate your insights – Ash

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Posted by Aashutosh Misra (Questions: 1, Answers: 0)
Asked on May 7, 2019 2:32 pm
Private answer

You're comparing equity value to enterprise valuations. Need to allocate the net debt, pension, environmental liabilities to the $72/110B enterprise value figures for them to be comparable to current market caps.

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Posted by yet2five (Questions: 1, Answers: 1)
Answered on June 21, 2019 3:58 pm