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Owens Corning – Asphalt Shingle and Coating Materials Manufacturing
Owens Corning is a global building and industrial materials leader. The company's three integrated businesses are dedicated to the manufacture and advancement of a broad range of insulation, roofing and fiberglass composite materials. Leveraging the talents of 19,000 employees in 33 countries, Owens Corning provides innovative products and sustainable solutions that address energy efficiency, product safety, renewable energy, durable infrastructure, and labor productivity. These solutions provide a material difference to the company's customers and make the world a better place. Based in Toledo, Ohio, USA, the company posted 2020 sales of $7.1 billion. Founded in 1938, it has been a Fortune 500® company for 66 consecutive years.
Analysis Results
Intrinsic Value $384.00
Latest Price $91.80
Relative Value 76% undervalued
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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 21.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 21.6%, 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 1.34 1.24
2023 1.63 1.39
2024 1.98 1.56
2025 2.41 1.75
2026 2.94 1.96
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 47.0 billion. This corresponds to a present value of 29.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 7.9 billion. Adding in the terminal value gives a total present value of 37.0 billion.

There are presently 96.2 million outstanding shares, so the intrinsic value per share is 384.0.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,097,000,000
Current Cash 959,000,000
Current Liabilities 1,697,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 441,000,000
Change in NCWC -8,000,000
EBIT 1,370,000,000
Tax Provision 319,000,000
Depreciation and Amortization 502,000,000
Capital Expenditure -416,000,000
Unlevered Free Cash Flow 1,115,404,870
Current Assets 2,606,000,000
Current Cash 717,000,000
Current Liabilities 1,440,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 449,000,000
Change in NCWC -111,000,000
EBIT 864,000,000
Tax Provision 129,000,000
Depreciation and Amortization 493,000,000
Capital Expenditure -307,000,000
Unlevered Free Cash Flow 939,000,000
Current Assets 2,061,000,000
Current Cash 172,000,000
Current Liabilities 1,329,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 560,000,000
Change in NCWC -104,000,000
EBIT 825,000,000
Tax Provision 186,000,000
Depreciation and Amortization 457,000,000
Capital Expenditure -447,000,000
Unlevered Free Cash Flow 471,355,329
Current Assets 2,020,000,000
Current Cash 78,000,000
Current Liabilities 1,278,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 664,000,000
Change in NCWC 202,000,000
EBIT 842,000,000
Tax Provision 156,000,000
Depreciation and Amortization 433,000,000
Capital Expenditure -537,000,000
Unlevered Free Cash Flow 753,155,049
Current Assets 1,985,000,000
Current Cash 246,000,000
Current Liabilities 1,282,000,000
Current Debt 5,000,000
Non-Cash Working Capital (NCWC) 462,000,000
Change in NCWC -52,000,000
EBIT 867,000,000
Tax Provision 269,000,000
Depreciation and Amortization 371,000,000
Capital Expenditure -337,000,000
Unlevered Free Cash Flow 431,785,330
Current Assets 1,586,000,000
Current Cash 112,000,000
Current Liabilities 963,000,000
Current Debt 3,000,000
Non-Cash Working Capital (NCWC) 514,000,000
Change in NCWC 20,000,000
EBIT 712,000,000
Tax Provision 188,000,000
Depreciation and Amortization 343,000,000
Capital Expenditure -373,000,000
Unlevered Free Cash Flow 473,965,928
Current Assets 1,538,000,000
Current Cash 96,000,000
Current Liabilities 1,117,000,000
Current Debt 169,000,000
Non-Cash Working Capital (NCWC) 494,000,000
Change in NCWC -297,000,000
EBIT 556,000,000
Tax Provision 120,000,000
Depreciation and Amortization 300,000,000
Capital Expenditure -401,000,000
Unlevered Free Cash Flow 11,039,647
Current Assets 1,807,000,000
Current Cash 67,000,000
Current Liabilities 983,000,000
Current Debt 34,000,000
Non-Cash Working Capital (NCWC) 791,000,000
Change in NCWC -12,000,000
EBIT 414,000,000
Tax Provision 5,000,000
Depreciation and Amortization 304,000,000
Capital Expenditure -363,000,000
Unlevered Free Cash Flow 334,115,879
Current Assets 1,848,000,000
Current Cash 57,000,000
Current Liabilities 992,000,000
Current Debt 4,000,000
Non-Cash Working Capital (NCWC) 803,000,000
Change in NCWC 143,000,000
EBIT 393,000,000
Tax Provision 68,000,000
Depreciation and Amortization 332,000,000
Capital Expenditure -353,000,000
Unlevered Free Cash Flow 417,109,890
Current Assets 1,612,000,000
Current Cash 55,000,000
Current Liabilities 906,000,000
Current Debt 9,000,000
Non-Cash Working Capital (NCWC) 660,000,000
Change in NCWC -48,000,000
EBIT 195,000,000
Tax Provision -28,000,000
Depreciation and Amortization 349,000,000
Capital Expenditure -332,000,000
Unlevered Free Cash Flow 164,000,000

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