GLW Fair Value Estimate
$50.3371.4% overvalued
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.
Corning Inc
Exchange: NYSESector: TechnologyIndustry: Electronic Components
Corning ( www.corning.com ) is one of the world’s leading innovators in materials science, with a 170-year track record of life-changing inventions. Corning applies its unparalleled expertise in glass science, ceramic science, and optical physics along with its deep manufacturing and engineering capabilities to develop category-defining products that transform industries and enhance people’s lives. Corning succeeds through sustained investment in RD&E, a unique combination of material and process innovation, and deep, trust-based relationships with customers who are global leaders in their industries. Corning’s capabilities are versatile and synergistic, which allows the company to evolve to meet changing market needs, while also helping its customers capture new opportunities in dynamic industries. Today, Corning’s markets include optical communications, mobile consumer electronics, display, automotive, solar, semiconductors, and life sciences.
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Pays a 0.66% dividend yield.
Current Price
$175.89
+3.77%GoodMoat Value
$50.33
71.4% overvaluedProfile
Valuation (TTM)
Market Cap$150.80B
P/E94.49
EV$119.20B
P/B12.77
Shares Out857.36M
P/Sales9.65
Revenue$15.63B
EV/EBITDA43.94
Corning Inc (GLW) Valuation
GoodMoat Analysis
Corning Inc appears deeply overvalued relative to the GoodMoat framework's fair value estimate, with a negative margin of safety exceeding -190%. The current P/E of 78.6 is extremely high compared to its sector and suggests the market is pricing in near-perfect future execution, offering no margin of safety for a value investor.
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The valuation assessment for Corning Inc reveals significant concerns from a value investing perspective. The current price of $146.35 stands 191% above the GoodMoat Target of $50.33, indicating a deeply unfavourable margin of safety according to the framework's bands (where <10% is unfavourable). This negative MoS suggests the stock is priced well above its estimated intrinsic value. The forward P/E multiple of 78.6 is exceptionally high, especially when contextualized against the company's 20.4% revenue growth and 10.2% profit margin. Such a multiple typically requires sustained, hyper-growth to justify, which the current financials do not support. The low Free Cash Flow Yield of 1.1% further indicates the market price is not being supported by strong current cash generation. While the company shows solid revenue growth and a reasonable debt level, the valuation metrics are extreme. For a value investor seeking a margin of safety, the current price demands flawless future execution and leaves no room for error or downside, making the risk/reward profile unfavourable. Analysis based on data as of 2024-05-15.
GLW Valuation Metrics
FCF$1.42B
FCF Growth Rate48.84%
EPS Growth (CAGR)8.84%
WACC10.00%
Fair Value Models
Graham Number, PEG-based, and Earnings-based models
View Fair Value →GLW Valuation & Fair Value Analysis
Corning Inc (GLW) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.
The GoodMoat Fair Value target for Corning Inc is $50.33. The current stock price is $175.89, suggesting the stock is 249.5% overvalued.
The price-to-earnings (P/E) ratio is 94.49. Price-to-book ratio is 12.77. Price-to-sales ratio is 9.65. Enterprise value to EBITDA is 43.94. PEG ratio is 1.26.
GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Corning Inc's intrinsic value.