AWI Valuation

Armstrong World Industries Inc

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193.540

-0.36(-0.186%)1D

Overview
Forecast
Valuation
Earnings

AWI Relative Valuation

AWI's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AWI is overvalued; if below, it's undervalued.

Historical Valuation

Armstrong World Industries Inc (AWI) is now in the Overvalued zone, suggesting that its current forward PE ratio of 25.03 is considered Overvalued compared with the five-year average of 18.76. The fair price of Armstrong World Industries Inc (AWI) is between 139.81 to 181.01 according to relative valuation methord. Compared to the current price of 193.54 USD , Armstrong World Industries Inc is Overvalued By 6.92%.

Relative Value

Fair Zone

139.81-181.01

Current Price：193.54

6.92%

Overvalued

25.03

Trailing

Forward

15.29

EV/EBITDA

Armstrong World Industries Inc. (AWI) has a current EV/EBITDA of 15.29. The 5-year average EV/EBITDA is 11.84. The thresholds are as follows: Strongly Undervalued below 8.19, Undervalued between 8.19 and 10.01, Fairly Valued between 13.66 and 10.01, Overvalued between 13.66 and 15.48, and Strongly Overvalued above 15.48. The current Forward EV/EBITDA of 15.29 falls within the Overvalued range.

19.34

EV/EBIT

Armstrong World Industries Inc. (AWI) has a current EV/EBIT of 19.34. The 5-year average EV/EBIT is 15.20. The thresholds are as follows: Strongly Undervalued below 10.16, Undervalued between 10.16 and 12.68, Fairly Valued between 17.72 and 12.68, Overvalued between 17.72 and 20.24, and Strongly Overvalued above 20.24. The current Forward EV/EBIT of 19.34 falls within the Overvalued range.

5.05

Armstrong World Industries Inc. (AWI) has a current PS of 5.05. The 5-year average PS is 3.53. The thresholds are as follows: Strongly Undervalued below 2.15, Undervalued between 2.15 and 2.84, Fairly Valued between 4.21 and 2.84, Overvalued between 4.21 and 4.90, and Strongly Overvalued above 4.90. The current Forward PS of 5.05 falls within the Strongly Overvalued range.

26.77

P/OCF

Armstrong World Industries Inc. (AWI) has a current P/OCF of 26.77. The 5-year average P/OCF is 18.03. The thresholds are as follows: Strongly Undervalued below 10.82, Undervalued between 10.82 and 14.43, Fairly Valued between 21.64 and 14.43, Overvalued between 21.64 and 25.24, and Strongly Overvalued above 25.24. The current Forward P/OCF of 26.77 falls within the Strongly Overvalued range.

25.04

P/FCF

Armstrong World Industries Inc. (AWI) has a current P/FCF of 25.04. The 5-year average P/FCF is 19.18. The thresholds are as follows: Strongly Undervalued below 13.02, Undervalued between 13.02 and 16.10, Fairly Valued between 22.26 and 16.10, Overvalued between 22.26 and 25.35, and Strongly Overvalued above 25.35. The current Forward P/FCF of 25.04 falls within the Overvalued range.

Armstrong World Industries Inc (AWI) has a current Price-to-Book (P/B) ratio of 10.03. Compared to its 3-year average P/B ratio of 7.47 , the current P/B ratio is approximately 34.24% higher. Relative to its 5-year average P/B ratio of 8.04, the current P/B ratio is about 24.66% higher. Armstrong World Industries Inc (AWI) has a Forward Free Cash Flow (FCF) yield of approximately 2.59%. Compared to its 3-year average FCF yield of 3.07%, the current FCF yield is approximately -15.83% lower. Relative to its 5-year average FCF yield of 3.13% , the current FCF yield is about -17.30% lower.

10.03

P/B

Median3y

7.47

Median5y

8.04

2.59

FCF Yield

Median3y

3.07

Median5y

3.13

Competitors Valuation Multiple

The average P/S ratio for AWI's competitors is 2.45, providing a benchmark for relative valuation. Armstrong World Industries Inc Corp (AWI) exhibits a P/S ratio of 5.05, which is 106.38% above the industry average. Given its robust revenue growth of 16.30%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

AWI.N

Armstrong World Industries Inc

Advanced Drainage Systems Inc

Performance Decomposition

Market capitalization of AWI increased by 52.99% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 23.53 to 28.73.

The secondary factor is the Revenue Growth, contributed 16.30%to the performance.

Overall, the performance of AWI in the past 1 year is driven by P/E Change. Which is more unsustainable.

16.30%

365.10M → 424.60M

Revenue Growth

14.57%

18.05 → 20.68

Margin Expansion

22.12%

23.53 → 28.73

P/E Change

52.99%