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:
Below please find a table outlining a discounted cash flow forecast for OC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Owens Corning ranked in the 85th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 989.33% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for OC, they are:
The company has produced more trailing twelve month cash flow than 77.38% of its sector Basic Materials.
Owens Corning's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 11.23% of tickers in our DCF set.
Owens Corning's effective tax rate, as measured by taxes paid relative to net income, is at 20 -- greater than 83.81% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
TG, KOP, HCC, OSN, and SCCO can be thought of as valuation peers to OC, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.