Is Corning Incorporated (GLW) overvalued?
On Equity Rank's model estimate, GLW trades 88% above its fair value. Corning Incorporated (GLW) last closed at $106.13; the multi-method model fair value is $56.51.
| Price | Model fair value | Price vs model |
|---|---|---|
| $106.13 | $56.51 | 88% above |
What the answer rests on
- 0 of 9 valuation methods put GLW's value above its price and 9 put it below, so the methods mostly agree.
- To justify today's price, GLW's free cash flow would need to grow about 25.7% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 11.8% a year.
- GLW trades at 48.1 times its last year's earnings, against a median of 25.8 for 34 profitable Hardware companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 58% above to 473% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind GLW's fair value · What prices assume · Other companies