Owens Corning - Comparative Multiple Analysis

Owens Corning (Comparative Multiple Analysis)

placeholder_large_analysis.png

Notes on the Comparative Multiple Analysis of Owens Corning

WikiWealth compares Owens Corning's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Owens Corning's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Owens Corning.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Owens Corning's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Owens Corning's Analysis


How does this work? The Comparative Investment Analysis determines the value of Owens Corning by comparing Owens Corning financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Owens Corning.

See the Owens Corning cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Owens Corning.

Also, see the Owens Corning's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Owens Corning's valuation conclusion for a quick summary.