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 Fair zone, suggesting that its current forward PE ratio of 21.94 is considered Fairly compared with the five-year average of 19.05. The fair price of Armstrong World Industries Inc (AWI) is between 134.34 to 181.41 according to relative valuation methord.
Relative Value
Fair Zone
134.34-181.41
Current Price：179.87
Fair
21.94
PE
1Y
3Y
5Y
Trailing
Forward
13.78
EV/EBITDA
Armstrong World Industries Inc. (AWI) has a current EV/EBITDA of 13.78. The 5-year average EV/EBITDA is 11.94. The thresholds are as follows: Strongly Undervalued below 8.10, Undervalued between 8.10 and 10.02, Fairly Valued between 13.86 and 10.02, Overvalued between 13.86 and 15.79, and Strongly Overvalued above 15.79. The current Forward EV/EBITDA of 13.78 falls within the Historic Trend Line -Fairly Valued range.
17.25
EV/EBIT
Armstrong World Industries Inc. (AWI) has a current EV/EBIT of 17.25. The 5-year average EV/EBIT is 15.32. The thresholds are as follows: Strongly Undervalued below 10.06, Undervalued between 10.06 and 12.69, Fairly Valued between 17.95 and 12.69, Overvalued between 17.95 and 20.58, and Strongly Overvalued above 20.58. The current Forward EV/EBIT of 17.25 falls within the Historic Trend Line -Fairly Valued range.
179.87
PS
Armstrong World Industries Inc. (AWI) has a current PS of 179.87. The 5-year average PS is 5.97. The thresholds are as follows: Strongly Undervalued below -36.07, Undervalued between -36.07 and -15.05, Fairly Valued between 27.00 and -15.05, Overvalued between 27.00 and 48.02, and Strongly Overvalued above 48.02. The current Forward PS of 179.87 falls within the Strongly Overvalued range.
21.83
P/OCF
Armstrong World Industries Inc. (AWI) has a current P/OCF of 21.83. The 5-year average P/OCF is 18.33. The thresholds are as follows: Strongly Undervalued below 10.68, Undervalued between 10.68 and 14.50, Fairly Valued between 22.15 and 14.50, Overvalued between 22.15 and 25.98, and Strongly Overvalued above 25.98. The current Forward P/OCF of 21.83 falls within the Historic Trend Line -Fairly Valued range.
22.62
P/FCF
Armstrong World Industries Inc. (AWI) has a current P/FCF of 22.62. The 5-year average P/FCF is 19.41. The thresholds are as follows: Strongly Undervalued below 12.94, Undervalued between 12.94 and 16.18, Fairly Valued between 22.65 and 16.18, Overvalued between 22.65 and 25.89, and Strongly Overvalued above 25.89. The current Forward P/FCF of 22.62 falls within the Historic Trend Line -Fairly Valued range.
Armstrong World Industries Inc (AWI) has a current Price-to-Book (P/B) ratio of 8.73. Compared to its 3-year average P/B ratio of 7.68 , the current P/B ratio is approximately 13.67% higher. Relative to its 5-year average P/B ratio of 8.14, the current P/B ratio is about 7.33% higher. Armstrong World Industries Inc (AWI) has a Forward Free Cash Flow (FCF) yield of approximately 0.03%. Compared to its 3-year average FCF yield of 3.09%, the current FCF yield is approximately -98.99% lower. Relative to its 5-year average FCF yield of 3.03% , the current FCF yield is about -98.97% lower.
8.73
P/B
Median3y
7.68
Median5y
8.14
0.03
FCF Yield
Median3y
3.09
Median5y
3.03
Competitors Valuation Multiple
The average P/S ratio for AWI's competitors is 92.51, providing a benchmark for relative valuation. Armstrong World Industries Inc Corp (AWI) exhibits a P/S ratio of 179.87, which is 94.44% above the industry average. Given its robust revenue growth of 9.98%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AWI increased by 12.54% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 386.60M to 425.20M.
The secondary factor is the Margin Expansion, contributed 2.06%to the performance.
Overall, the performance of AWI in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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