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Owens Corning – Asphalt Shingle and Coating Materials Manufacturing
owens corning (nyse: oc) develops, manufactures and markets insulation, roofing and fiberglass composites. global in scope and human in scale, the company’s market-leading businesses use their deep expertise in materials, manufacturing and building science to develop products and systems that save energy and improve comfort in commercial and residential buildings. through its glass reinforcements business, the company makes thousands of products lighter, stronger and more durable. ultimately, owens corning people and products make the world a better place. based in toledo, ohio, owens corning posted 2014 sales of $5.3 billion and employs about 15,000 people in 26 countries. it has been a fortune 500® company for 61 consecutive years. for more information, please visit www.owenscorning.com. a global company where market-leading businesses are built. at owens corning, we strive every day to make the world a better place. today, owens corning operates in three segments: insulation, roo
Analysis Results
Intrinsic Value $457.66
Latest Price $136.26
Relative Value 70% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
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 21.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 21.5%, 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)
2023 1.6 1.47
2024 1.95 1.65
2025 2.37 1.84
2026 2.88 2.06
2027 3.5 2.3
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 52.7 billion. This corresponds to a present value of 31.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 9.32 billion. Adding in the terminal value gives a total present value of 41.1 billion.

There are presently 89.8 million outstanding shares, so the intrinsic value per share is 457.66.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,556,000,000
Current Cash 1,099,000,000
Current Liabilities 2,104,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 353,000,000
Change in NCWC -88,000,000
EBIT 1,707,000,000
Tax Provision 373,000,000
Depreciation and Amortization 531,000,000
Capital Expenditure -446,000,000
Unlevered Free Cash Flow 1,309,507,434
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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