Owens Corning Valuation
| OC Stock | USD 160.52 2.38 1.46% |
At this time, the company appears to be overvalued. Owens Corning holds a recent Real Value of $140.71 per share. The prevailing price of the company is $160.52. Our model determines the value of Owens Corning from analyzing the company fundamentals such as Return On Equity of 0.24, shares outstanding of 86.99 M, and Operating Margin of 0.19 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors support purchasing undervalued entities and exiting overvalued entities since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Owens Corning's valuation include:
Price Book 2.7871 | Enterprise Value 15.9 B | Enterprise Value Ebitda 7.0545 | Price Sales 1.4879 | Forward PE 12.1655 |
Overvalued
Today
Please note that Owens Corning's price fluctuation is very steady at this time. Calculation of the real value of Owens Corning is based on 3 months time horizon. Increasing Owens Corning's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Owens Corning is useful when determining the fair value of the Owens stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Owens Corning. Since Owens Corning is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Owens Stock. However, Owens Corning's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 160.52 | Real 140.71 | Target 159.54 | Hype 164.82 |
The real value of Owens Stock, also known as its intrinsic value, is the underlying worth of Owens Corning Company, which is reflected in its stock price. It is based on Owens Corning's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Owens Corning's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Owens Corning's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Owens Corning helps investors to forecast how Owens stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Owens Corning more accurately as focusing exclusively on Owens Corning's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Owens Corning's intrinsic value based on its ongoing forecasts of Owens Corning's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Owens Corning's closest peers. When choosing an evaluation method for Owens Corning, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Owens Corning Investments |
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Owens Valuation Trend
Knowing Owens Corning's actual value is paramount for traders to make sound investment determinations. Owens Corning's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Owens Corning's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Owens Corning's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Owens Market Cap
Owens Corning is considered to be number one stock in market capitalization category among related companies. Market capitalization of Industrials industry is now estimated at about 24.9 Billion. Owens Corning totals roughly 14.23 Billion in market capitalization claiming about 57% of equities under Industrials industry.Owens Corning Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Owens Corning's current stock value. Our valuation model uses many indicators to compare Owens Corning value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Owens Corning competition to find correlations between indicators driving Owens Corning's intrinsic value. More Info.Owens Corning is rated below average in price to earning category among related companies. It is regarded second in price to book category among related companies fabricating about 0.21 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Owens Corning is roughly 4.74 . The current year's Price To Book Ratio is expected to grow to 2.71. Comparative valuation analysis is a catch-all model that can be used if you cannot value Owens Corning by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Owens Corning's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Owens Corning's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Owens Corning's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Owens Corning and how it compares across the competition.
About Owens Corning Valuation
The stock valuation mechanism determines the current worth of Owens Corning on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Owens Corning. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Owens Corning based exclusively on its fundamental and basic technical indicators. By analyzing Owens Corning's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Owens Corning's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Owens Corning. We calculate exposure to Owens Corning's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Owens Corning's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.7 B | 2.8 B | |
| Pretax Profit Margin | 0.16 | 0.17 | |
| Operating Profit Margin | 0.19 | 0.20 | |
| Net Profit Margin | 0.12 | 0.13 | |
| Gross Profit Margin | 0.28 | 0.24 |
8 Steps to conduct Owens Corning's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Owens Corning's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Owens Corning's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Owens Corning's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Owens Corning's revenue streams: Identify Owens Corning's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Owens Corning's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Owens Corning's growth potential: Evaluate Owens Corning's management, business model, and growth potential.
- Determine Owens Corning's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Owens Corning's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Owens Corning represents a small ownership stake in the entity. As a stockholder of Owens, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Owens Corning Dividends Analysis For Valuation
The current year's Dividends Paid is expected to grow to about (178.6 M). In addition to that, Dividend Yield is expected to decline to 0.01. The current year's Retained Earnings is expected to grow to about 5 B. The current year's Retained Earnings Total Equity is expected to grow to about 4.6 B
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -188 M | -178.6 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.16 | 0.1 | |
| Dividend Paid And Capex Coverage Ratio | (5.09) | (4.83) |
There are various types of dividends Owens Corning can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Owens shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Owens Corning directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Owens pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Owens Corning by the value of the dividends paid out.
Owens Corning Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Owens Corning does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 91 M | |
| Quarterly Earnings Growth Y O Y | 0.114 | |
| Forward Price Earnings | 12.1655 |
Owens Corning Current Valuation Indicators
Valuation refers to the process of determining the present value of Owens Corning and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Owens we look at many different elements of the entity such as Owens's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Owens Corning's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Owens Corning's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Owens Corning, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Owens Corning's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Owens Corning's worth.When determining whether Owens Corning offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Owens Corning's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Owens Corning Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Owens Corning Stock: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Owens Corning. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in main economic indicators. For information on how to trade Owens Stock refer to our How to Trade Owens Stock guide.Note that the Owens Corning information on this page should be used as a complementary analysis to other Owens Corning's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
Complementary Tools for Owens Stock analysis
When running Owens Corning's price analysis, check to measure Owens Corning's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Owens Corning is operating at the current time. Most of Owens Corning's value examination focuses on studying past and present price action to predict the probability of Owens Corning's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Owens Corning's price. Additionally, you may evaluate how the addition of Owens Corning to your portfolios can decrease your overall portfolio volatility.
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Is Owens Corning's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Owens Corning. If investors know Owens will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Owens Corning listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.114 | Dividend Share 2.16 | Earnings Share 13.13 | Revenue Per Share 107.403 | Quarterly Revenue Growth 0.008 |
The market value of Owens Corning is measured differently than its book value, which is the value of Owens that is recorded on the company's balance sheet. Investors also form their own opinion of Owens Corning's value that differs from its market value or its book value, called intrinsic value, which is Owens Corning's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Owens Corning's market value can be influenced by many factors that don't directly affect Owens Corning's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Owens Corning's value and its price as these two are different measures arrived at by different means. Investors typically determine if Owens Corning is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Owens Corning's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.