Owens Corning develops, manufactures and markets insulation, roofing, and fiberglass composites. The company was founded in 1938 and is based in Toledo, Ohio.
OC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Owens Corning with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Owens Corning ranked in the 68th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 177.67% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for OC, they are:
Owens Corning's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
Owens Corning's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -2.55. This coverage rate is greater than that of merely 15.32% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 11. This value is greater than 81.73% stocks in the Basic Materials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as OC, try NRP, NTIC, CRH, IAG, and CINR.
Owens Corning’s (NYSE: OC) Insulation business earned the National Preferred Partner designation from David Weekley Homes’ 16th annual National Preferred Partner Survey. This is the eighth time Owens Corning Insulation, together with its network of contractors and distributors, has been recognized for its world-class quality, customer service and performance by the privately-held U.S. homebuilder.
Owens Corning (OC) Q2 2020 Earnings Conference Call July 29, 2020 09:00 AM ET Company Participants Scott Cripps - VP, IR Brian Chambers - CEO & Chairman Prithvi Gandhi - Interim CFO & VP Conference Call Participants Truman Patterson - Wells Fargo Stephen Kim - Evercore ISI Phil Ng -...