Owens Corning

NYSE:OC Stock Report

Mkt Cap: US$9.8b

We’ve recently updated our valuation analysis.

Owens Corning Valuation

Is OC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for OC?

Other financial metrics that can be useful for relative valuation.

OC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.3x
Enterprise Value/EBITDA5.6x
PEG Ratio-0.7x

Price to Earnings Ratio vs Peers

How does OC's PE Ratio compare to its peers?

The above table shows the PE ratio for OC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average23.3x
AOS A. O. Smith
41.3x11.5%US$10.0b
LII Lennox International
19.5x7.1%US$10.0b
CSL Carlisle Companies
13.2x8.6%US$11.0b
ALLE Allegion
19.3x9.0%US$9.4b
OC Owens Corning
7.5x-10.8%US$9.8b

Price-To-Earnings vs Peers: OC is good value based on its Price-To-Earnings Ratio (7.5x) compared to the peer average (23.3x).

Price to Earnings Ratio vs Industry

How does OC's PE Ratio compare vs other companies in the US Building Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.1%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.1%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: OC is good value based on its Price-To-Earnings Ratio (7.5x) compared to the US Building industry average (14.2x)

Price to Earnings Ratio vs Fair Ratio

What is OC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

OC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.5x
Fair PE Ratio11.8x

Price-To-Earnings vs Fair Ratio: OC is good value based on its Price-To-Earnings Ratio (7.5x) compared to the estimated Fair Price-To-Earnings Ratio (11.8x).

Share Price vs Fair Value

What is the Fair Price of OC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: OC ($109.31) is trading below our estimate of fair value ($199.85)

Significantly Below Fair Value: OC is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst OC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$109.31
US$117.79
+7.8%
14.5%US$145.00US$87.00n/a14
May ’24US$106.08
US$115.43
+8.8%
13.7%US$145.00US$87.00n/a14
Apr ’24US$95.80
US$110.07
+14.9%
15.5%US$140.00US$76.00n/a15
Mar ’24US$98.42
US$110.07
+11.8%
15.5%US$140.00US$76.00n/a15
Feb ’24US$99.11
US$100.33
+1.2%
17.5%US$141.00US$75.00n/a15
Jan ’24US$85.30
US$100.27
+17.5%
21.1%US$155.00US$70.00n/a15
Dec ’23US$90.09
US$101.00
+12.1%
20.2%US$155.00US$70.00n/a15
Nov ’23US$85.48
US$101.00
+18.2%
20.2%US$155.00US$70.00n/a15
Oct ’23US$78.61
US$104.93
+33.5%
22.2%US$164.00US$78.00n/a15
Sep ’23US$80.76
US$103.94
+28.7%
22.0%US$164.00US$78.00n/a16
Aug ’23US$92.93
US$105.88
+13.9%
21.8%US$164.00US$78.00n/a17
Jul ’23US$77.49
US$106.89
+37.9%
21.2%US$159.00US$77.00n/a18
Jun ’23US$94.73
US$113.22
+19.5%
18.6%US$159.00US$85.00n/a18
May ’23US$90.93
US$113.22
+24.5%
18.6%US$159.00US$85.00US$106.0818
Apr ’23US$92.14
US$119.88
+30.1%
13.7%US$157.00US$94.00US$95.8017
Mar ’23US$89.32
US$121.53
+36.1%
13.6%US$157.00US$94.00US$98.4217
Feb ’23US$90.01
US$115.00
+27.8%
16.2%US$164.00US$89.00US$99.1117
Jan ’23US$90.50
US$113.29
+25.2%
17.0%US$151.00US$88.00US$85.3017
Dec ’22US$85.90
US$114.18
+32.9%
17.4%US$151.00US$88.00US$90.0917
Nov ’22US$94.18
US$114.13
+21.2%
17.9%US$151.00US$88.00US$85.4816
Oct ’22US$87.07
US$113.81
+30.7%
15.9%US$141.00US$88.00US$78.6116
Sep ’22US$95.59
US$112.94
+18.1%
15.1%US$139.00US$88.00US$80.7616
Aug ’22US$96.16
US$111.20
+15.6%
14.6%US$139.00US$88.00US$92.9315
Jul ’22US$99.29
US$108.07
+8.8%
14.5%US$135.00US$80.00US$77.4914
Jun ’22US$107.35
US$108.07
+0.7%
14.5%US$135.00US$80.00US$94.7314
May ’22US$96.81
US$107.29
+10.8%
13.5%US$135.00US$80.00US$90.9314

Analyst Forecast: Target price is less than 20% higher than the current share price.

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