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GLW

Corning, Inc. – Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
Corning is one of the world's leading innovators in materials science, with a 169-year track record of life-changing inventions. Corning applies its unparalleled expertise in glass science, ceramic science, and optical physics along with its deep manufacturing and engineering capabilities to develop category-defining products that transform industries and enhance people's lives. Corning succeeds through sustained investment in RD&E, a unique combination of material and process innovation, and deep, trust-based relationships with customers who are global leaders in their industries. Corning's capabilities are versatile and synergistic, which allows the company to evolve to meet changing market needs, while also helping our customers capture new opportunities in dynamic industries. Today, Corning's markets include optical communications, mobile consumer electronics, display, automotive, and life sciences.
Analysis Results
Intrinsic Value $5.51
Latest Price $29.02
Relative Value 427% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -13.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -13.5%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 0.484 0.449
2023 0.418 0.361
2024 0.362 0.29
2025 0.313 0.233
2026 0.271 0.187
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 4.88 billion. This corresponds to a present value of 3.14 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1.52 billion. Adding in the terminal value gives a total present value of 4.66 billion.

There are presently 845.0 million outstanding shares, so the intrinsic value per share is 5.51.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 7,659,000,000
Current Cash 2,148,000,000
Current Liabilities 4,806,000,000
Current Debt 55,000,000
Non-Cash Working Capital (NCWC) 760,000,000
Change in NCWC -961,000,000
EBIT 2,147,000,000
Tax Provision 491,000,000
Depreciation and Amortization 1,481,000,000
Capital Expenditure -1,637,000,000
Unlevered Free Cash Flow 590,209,845
Current Assets 8,004,000,000
Current Cash 2,672,000,000
Current Liabilities 3,767,000,000
Current Debt 156,000,000
Non-Cash Working Capital (NCWC) 1,721,000,000
Change in NCWC 202,000,000
EBIT 484,000,000
Tax Provision 111,000,000
Depreciation and Amortization 1,520,000,000
Capital Expenditure -1,377,000,000
Unlevered Free Cash Flow 742,765,650
Current Assets 7,463,000,000
Current Cash 2,434,000,000
Current Liabilities 3,521,000,000
Current Debt 11,000,000
Non-Cash Working Capital (NCWC) 1,519,000,000
Change in NCWC 147,000,000
EBIT 1,323,000,000
Tax Provision 256,000,000
Depreciation and Amortization 1,503,000,000
Capital Expenditure -1,978,000,000
Unlevered Free Cash Flow 716,473,684
Current Assets 7,034,000,000
Current Cash 2,355,000,000
Current Liabilities 3,311,000,000
Current Debt 4,000,000
Non-Cash Working Capital (NCWC) 1,372,000,000
Change in NCWC -308,000,000
EBIT 1,965,000,000
Tax Provision 437,000,000
Depreciation and Amortization 1,293,000,000
Capital Expenditure -2,242,000,000
Unlevered Free Cash Flow 136,672,654
Current Assets 8,827,000,000
Current Cash 4,317,000,000
Current Liabilities 3,209,000,000
Current Debt 379,000,000
Non-Cash Working Capital (NCWC) 1,680,000,000
Change in NCWC 418,000,000
EBIT 1,991,000,000
Tax Provision 2,154,000,000
Depreciation and Amortization 1,158,000,000
Capital Expenditure -1,804,000,000
Unlevered Free Cash Flow -391,000,000
Current Assets 9,048,000,000
Current Cash 5,291,000,000
Current Liabilities 2,751,000,000
Current Debt 256,000,000
Non-Cash Working Capital (NCWC) 1,262,000,000
Change in NCWC -165,000,000
EBIT 1,752,000,000
Tax Provision -3,000,000
Depreciation and Amortization 1,195,000,000
Capital Expenditure -1,130,000,000
Unlevered Free Cash Flow 1,652,000,000
Current Assets 8,269,000,000
Current Cash 4,600,000,000
Current Liabilities 2,814,000,000
Current Debt 572,000,000
Non-Cash Working Capital (NCWC) 1,427,000,000
Change in NCWC -455,000,000
EBIT 1,606,000,000
Tax Provision 147,000,000
Depreciation and Amortization 1,184,000,000
Capital Expenditure -1,250,000,000
Unlevered Free Cash Flow 926,129,205
Current Assets 10,238,000,000
Current Cash 6,068,000,000
Current Liabilities 2,324,000,000
Current Debt 36,000,000
Non-Cash Working Capital (NCWC) 1,882,000,000
Change in NCWC -49,000,000
EBIT 2,259,000,000
Tax Provision 1,096,000,000
Depreciation and Amortization 1,200,000,000
Capital Expenditure -1,076,000,000
Unlevered Free Cash Flow 1,640,091,928
Current Assets 8,891,000,000
Current Cash 5,235,000,000
Current Liabilities 1,746,000,000
Current Debt 21,000,000
Non-Cash Working Capital (NCWC) 1,931,000,000
Change in NCWC 260,000,000
EBIT 2,060,000,000
Tax Provision 512,000,000
Depreciation and Amortization 1,002,000,000
Capital Expenditure -1,019,000,000
Unlevered Free Cash Flow 1,876,505,863
Current Assets 9,695,000,000
Current Cash 6,144,000,000
Current Liabilities 1,956,000,000
Current Debt 76,000,000
Non-Cash Working Capital (NCWC) 1,671,000,000
Change in NCWC 889,000,000
EBIT 2,361,000,000
Tax Provision 389,000,000
Depreciation and Amortization 997,000,000
Capital Expenditure -1,801,000,000
Unlevered Free Cash Flow 2,011,137,784

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