Owens Stock Valuation

OC
 Stock
  

USD 91.45  0.06  0.07%   

Do you wonder what the value of Owens Corning is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Owens Corning, is its stock price multiplied by the total number of shares outstanding, calculating Owens Corning's enterprise value requires a different approach. It uses Owens Corning's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current year Free Cash Flow is expected to grow to about 732.1 M, whereas Enterprise Value is forecasted to decline to about 10.8 B.
Owens Corning holds a recent Real Value of $97.67 per share. The prevailing price of the company is $91.45. At this time, the company appears to be undervalued. Our model determines the value of Owens Corning from analyzing the company fundamentals such as Shares Outstanding of 100.49 M, return on equity of 26.01 %, and Operating Margin of 22.97 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support taking in undervalued entities and trading overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
  
Owens Corning Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Owens Corning's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Owens Most Recent Valuation Data

Price Book
1.92
EPS Estimate Next Quarter
2.92
Price Sales
0.94
Forward Annual Dividend Yield
0.0153
EBITDA
2.1 B
Dividend Share
1.31
Undervalued
Today 91.45
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.
97.67
Real Value
100.15
Upside
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:
Earnings
Estimates (5)
LowProjected EPSHigh
8.688.748.82
Details
Hype
Prediction
LowEstimated ValueHigh
89.2091.6894.16
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.680.690.70
Details
10 Analysts
Consensus
LowTarget PriceHigh
97.00113.67136.00
Details
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 Valuation Drivers Correlation

Many accounts on the financial statements of Owens Corning are highly interrelated and sometimes correlated. Consequently, when conducting Owens's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Owens
Click cells to compare fundamentals

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 Building Products & Equipment industry is now estimated at about 494.19 Billion. Owens Corning claims roughly 9.16 Billion in market capitalization contributing just under 2% to stocks in Building Products & Equipment industry.
Capitalization  Revenue  Total debt  Workforce  Valuation

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 considered to be number one stock in five year return category among related companies. It is considered to be number one stock in beta category among related companies totaling about  1.05  of Beta per Five Year Return. . 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.
Fiscal Year End
December
Industry
Building Products & Equipment
Concentration
Building Products
Full Time Employees
20 K
Service Category
Building Products
Employer Id Number
43-2109021
Last ReportedProjected for 2022
Gross Profit1.9 B1.7 B
Profit Margin 11.71  9.48 
Owens Corning manufactures and markets insulation, roofing, and fiberglass composite materials in the United States, Canada, Europe, the Asia Pacific, and internationally. Owens Corning was incorporated in 1938 and is headquartered in Toledo, Ohio. Owens Corning operates under Building Products Equipment classification in the United States and is traded on New York Stock Exchange. It employs 20000 people.
Owens Corning's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Owens Corning's value is low or high relative to the company's performance and growth projections. Determining the market value of Owens Corning can be done in different ways, such as multiplying its stock price by its outstanding shares.
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

As of August 18, 2022, Payment of Dividends and Other Cash Distributions is expected to decline to about (92.2 M). In addition to that, Dividend Yield is expected to decline to 0.0124. Owens Corning Accumulated Retained Earnings Deficit are projected to increase significantly based on the last few years of reporting. The past year's Accumulated Retained Earnings Deficit were at 2.67 Billion. The current year Earnings per Basic Share is expected to grow to 10.37, whereas Earning Before Interest and Taxes EBIT is forecasted to decline to about 720.7 M.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-85.5 M-92.2 M
Dividend Yield 0.0126  0.0124 
Dividends per Basic Common Share 1.01  0.95 
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 Valuation Growth Rates

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.
Quick Ratio1.11
Earnings Quarterly Growth15.10%
Revenue Growth16.20%
Payout Ratio10.83%
Enterprise Value To Ebitda5.31
Earnings Growth23.80%
Enterprise Value To Revenue1.22

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.
Please check Your Equity Center. 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

Complementary Tools for Owens Stock analysis

When running Owens Corning 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 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.
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
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 YOY
0.24
Market Capitalization
8.7 B
Quarterly Revenue Growth YOY
0.16
Return On Assets
0.0991
Return On Equity
0.26
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 Owens Corning value 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.