A Look at O-I Glass (OI) Valuation Following Recent Share Price Momentum

Simply Wall St
O-I Glass (OI) shares have moved slightly in recent trading sessions, drawing some attention from investors curious about what is behind the shift. The company’s fundamentals and recent performance trends are coming into sharper focus as a result.

See our latest analysis for O-I Glass.

O-I Glass has seen its share price climb 18% over the past month, signaling fresh momentum and renewed interest from investors after a quieter stretch earlier in the year. While the stock’s short-term price returns have picked up, its 1-year total shareholder return of 6.5% and longer-term three-year total return of -18% serve as a reminder that the journey has included both gains and setbacks.

If you’re looking for your next opportunity beyond O-I Glass, now is a great time to broaden your search and discover fast growing stocks with high insider ownership

With shares up nearly 18% over the past month and trading at about a 25% discount to analyst price targets, investors are left to question whether O-I Glass is undervalued, or if the anticipated growth is already reflected in today's price.

Most Popular Narrative: 16% Undervalued

At $13.35, O-I Glass is trading below the most popular narrative’s fair value estimate of $15.89. Market excitement is building, and the numbers supporting this valuation illustrate why sentiment remains positive for the next phase.

Significant cost reduction initiatives through Fit to Win are driving substantial SG&A and value chain savings. These efforts are expected to improve net margins and deliver higher future earnings, as reflected in upgraded guidance and ongoing productivity gains.

Read the complete narrative.

Want to see what’s fueling this bullish outlook? The narrative’s fair value is based on assumptions around rising profitability and a future earnings multiple that could surprise even seasoned investors. Curious which numbers drive the stock’s target so far above today’s price? Unlock the full story and see which forecasts are at play.

Result: Fair Value of $15.89 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent weakness in demand and rising competition from alternative packaging could present challenges for O-I Glass’s path to stronger and more sustainable earnings growth.

Find out about the key risks to this O-I Glass narrative.

Build Your Own O-I Glass Narrative

If you’re not convinced by the current narrative or want to dig deeper into the numbers, you can easily create your own perspective in just a few minutes: Do it your way

A great starting point for your O-I Glass research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

Act now and access hand-picked investment opportunities with the Simply Wall Street Screener. Don’t let the next big stock pass you by!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Valuation is complex, but we're here to simplify it.

Discover if O-I Glass might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com